Santa Clara County Grand Jury • 2008-2009

LOMAPRiETA I-joint- Union -school -district-i

Published: June 24, 2009 5 pages
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Findings and Recommendations 6 findings

F1
Boards of Trustees approve overly generous benefits to themselves, which include thefollowing: • Fully paid health benefits for trustees and theirfamilies (often exceeding those of teachers and/or with nopayment ceiling • Excessive travel and conference costs • Pension contribution Board of Trustees: Diane Matlock, President Rachelle Lapp, Vice-President Paula Lacey, Member Mario Montana, Member Tricia Rasmussen, Member The Lorna Prieta School District disagrees with the finding. The District does not provide medical benefits for Trustees or any compensation stipends.
Related Recommendations (1)
R1
Boards of Trustees should carefully review the benefits listed in Finding 1and; • Eliminate health benefits for Board Members • Minimize travel and conference costs • Eliminate pension contributions Response Two years ago, the District Board of Trustees has taken steps to minimize travel and conference costs. The District does not provide medical benefits for Trustees or pension contributions.
F2
Boards of Trustees are approving overly generous benefits to Superintendents and Chancellors, including thefollowing: • Auto allowances (auto leases/purchases, insurance, maintenance, etc.) to superintendents • Housing allowances • Million dollar housing loans at zero or below market interest rates • Guaranteed annual step and/or longevity increases • Signing bonuses • Contract Buyouts • Excessive performance bonuses • Per diem payments when out of the district • Personal technology • Professional memberships and subscription allowances • Excessive travel and entertainment expenses • Salary increases automatically triggered by increases in teacher's salaries which are in addition to other guaranteed salary increases • Pension allowances (in addition to regular STRS/PERS contributions) • Advanced degree stipends • Lifetime medical insurance benefits • Annual physicals Response The Lorna Prieta School District disagrees with the finding. Santa Clara County school districts face considerable challenges in attracting and maintaining qualified applicants for superintendent positions. The high cost of living inthe area, coupled with extreme demands and pressures of the position, have created a market in which compensation packages offering certain benefits are viewed as a necessity. In the vast majority of cases, the benefits are not "overly generous," but in line with the realities of market supply and demand.
Related Recommendations (1)
R2
Boards of Trustees should carefully review and renegotiate the Superintendent/Chancellor benefits listed in Finding #2for possible reduction and/or elimination. The recommendation will not be implemented because it is not warranted. It is unrealistic to expect superintendents to renegotiate their benefits, and impractical to believe such a renegotiation would not hinder recruitment and retention in these crucial positions. Demand for qualified people who can fill these positions is very high. In the current market, incumbents who face reduced benefits can and will leave for similar positions in other district or states where the benefits are intact; or for positions inthe private sector, where compensation packages far exceed those in school districts. Response The Grand Jury's recommendation does serve as a reminder to all trustees to carefully scrutinize benefit packages offered to superintendents in future contracts.
F3
Superintendent salaries and increases appear to bear no relationship to the number of schools, students and employees they oversee, nor their district's academic improvement. Response Superintendent salaries often are related to the size of the district, but that is only one of a myriad of factors that determine compensation. Also, many superintendent evaluations do typically take student academic performance into consideration. Student's performance is a major evaluation area for our district.
Related Recommendations (1)
R3
The Board of Trustees should ensure that Superintendent/Chancellor salaries and increases take into account the number of schools, teachers, and students they oversee, and are tied to the district's students' progress and quantifiable metrics. Response The recommendation has been partially implemented, in that many superintendent evaluations do typically take student academic performance into consideration. The remainder of the recommendation will not be implemented because it is not warranted. Tying superintendent salaries to district size would be a simplistic and counter productive approach to finding and retaining district leaders who are best suited for the particular characteristics and challenges of a given district. There are many other factors other than size that come into play when compensating leadership - a superintendent's tenure, the characteristics of the students served by the districts, the nature of the community, etc. Also, to a large extent the process of hiring a superintendent is tied to the circumstance of the time; a district, whether large, small or in-between, cannot choose to hire a superintendent when market conditions are favorable. Given the crucial nature of the position, districts try to fill the job with a highly qualified candidate as expeditiously as is reasonable.
F4
Boards of Trustees hire costly search firms to recruit successors for retiring or dismissed Superintendents/Chance Ilors. The price of hiring a search firm, weighed against the benefit of bringing in a strong pool of highly qualified candidates, does not seem "costly". The current superintendent is in his year of tenure in 6th the Lorna Prieta School District. The total cost for the hiring of our superintendent was six thousand dollars ($6,000).
Related Recommendations (1)
R4
Boards of Trustees should conduct a preliminary search within the local area prior to hiring search firms. Response The recommendation will not be implemented because it is not warranted. The Board is not currently undertaking a superintendent search, but will consider this option when the time is appropriate.
F5
Boards of Trustees approve the hiring of multiple private attorneys, in some cases at a tremendous expense. Response School districts often are involved in complex legal issues that require legal expertise in sub-sections of the Education Code, requiring considerable specialized legal capacity, time and energy. Considering all the complex legal issues school districts are required to address, our attorney fees are minimal. Legal cost expenditures are a major area of responsibilities for superintendent.
Related Recommendations (1)
R5
All Boards of Trustees should engage County Counsel whenever possible and leverage their buying power to negotiate lowerfees with private lawfirms. Response The recommendation has not yet been implemented, but will be implemented by the District in the future.
F6
The operation of 31K-12 school districts andfour (4) community college districts creates excessively high management and administrative costs. Five K-12 school district have excessively high Superintendent costs per student which is reflective of the district's having only one or two schools. Response The Lorna Prieta School District partially agrees with the finding, in that the large number of districts does compound administrative costs. However, to draw cost-benefit conclusions on the basis of superintendent costs per student can be a highly misleading approach.
Related Recommendations (1)
R6
A consolidation of districts should be considered to reduce the numbers and costs of Superintendents/Chancellors, Boards of Trustees, administrative staff and overhead. Local boards and trustees cannot implement the recommendation because under the California education code, consolidation of school districts isrelegated to the people who live in the school district. Should communities wish tojoin with other communities to create larger school or community college districts, the process is clearly spelled out in the Education Code, under which a vote of the electorate can change district organization. A final word: Today more than ever, Santa Clara County school districts are examining expenditures and procedures in order to be as efficient and thrifty as possible. The Grand Jury report is one more reminder of the necessity of that. Our district will be reviewing cost cutting recommendations made by the Grand Jury report throughout this year. Should you have any questions related to this matter please do not hesitate to contact me at (408) 353-1101. Henrffastaniada, Superintendent

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Loma Prieta Joint Union Elementary School District School District