State Trusteeship and How it Impacts Wages

June 05, 2023

Your CSEA bargaining team has made it clear that protecting ourselves by securing a contract is our top priority in negotiations. SUSD is struggling financially and may be forced to request a loan for financial assistance, which would trigger a state trusteeship where an appointed trustee would oversee all financial decisions of the District. This could lead to budget cuts, furloughs and even layoffs.

There is much talk among CSEA members and our district colleagues as to how a state trusteeship could affect our jobs. Here are the facts.

Education Code 41320(e) reads as follows:

“The county superintendent of schools, with the concurrence of the Superintendent, shall certify to the Director of Finance that the action taken to correct the financial problems of the school district is realistic and will result in placing the school district on a sound financial basis.”

The Education Code makes it clear that the goal of a state trusteeship is to place the district on a sound financial basis. There have been rumors that a state trusteeship could result in an influx of money into the district budget for salary increases and other economic incentives for staff. This is a dangerous line of thinking as there is nothing in the Education Code which stipulates that additional funds for raises would be provided in a state trusteeship.

What members could expect is for a state appointed trustee to attempt to make modifications, including possible cuts, to the wages, hours and working conditions of staff to achieve financial stability. This is a real risk to our paychecks unless we quickly secure a new contract.

Education Code 41320.1(c).1 reads in part:

“During the period of his or her service, the trustee may stay or rescind an action of the governing board of the school district that, in the judgment of the trustee, may affect the financial condition of the school district.”

Though changes can depend on various circumstances, possible scenarios are listed below:

  • Renegotiation: The state-appointed administrator may request to renegotiate certain aspects of the financial cost of staff which could involve changes to compensation, work hours, staffing levels, or other provisions.
     
  • Temporary suspension or modification: In some cases, the administrator may propose a temporary suspension or modification to address immediate financial or operational challenges. For example, this could involve wage freezes, furloughs, or changes to health benefits.

Securing a new collective bargaining agreement should be a priority for all members of Delta Valley 821 as it would lessen the exposure to decisions made by a state trustee that could negatively impact our wages and hours.

Right now, it’s important to stay united behind your CSEA bargaining team and support the decision to secure a new collective bargaining agreement.

For any questions, please contact Chapter Administrator Rosemarie Lopes-Horn at delta821administrator@csea.com