“The Hayward Unified School District (HUSD) Board of Education must implement the fiscal advice they are receiving in order to prevent relapse into financial insolvency.” This is one of several recommendations resulting from a grand jury investigation of Hayward schools. The investigation concluded that past and current trustees have been reluctant to make difficult budget decisions, jeopardizing the financial soundness of the district.
The report is critical of decisions made since 2006, when county financial experts assigned to help Hayward Unified out of a budget crisis left and the district regained its independent ability to manage.
"Complaints and investigation by the grand jury revealed serious concerns about the board's role in allowing the district's finances to deteriorate to create the current fiscal crisis," reads the report, which mentions a failure to institute structural change in 2006, in particular pointing to a lack of enforcement of controls to prevent unauthorized hiring. It states further inaction meant continued deficit spending and the depletion of reserves by the end of 2009.
When informed that a reduction in state per-pupil spending would result in a $5.1 million shortfall, "the board refused to make the necessary program cuts to address the loss of those funds. Rather, the board supported additional expenditures of almost $1.2 million for increased staffing."
Jurors found that after the return of Alameda County fiscal experts in early 2010, the board "continues to avoid difficult decisions." That includes not cutting teaching by six days in the 2010-2011 calendar year, issuing layoff notices past the March 2011 deadline and losing the option to lay off or reinstate staff, and overriding recommendations to eliminate certain positions.
Because the board had refused to make necessary budget cuts recommended by the staff, the board was told that they were running an $11 million deficit for the 2009-2010 budget year. Finally, because it was the third year in a row that the district was deficit spending, the district had completely depleted $25 million in reserves that it had built up from prior years.
Board President Lisa Brunner said that while all recommendations were not implemented, they looked at other areas to cut funds and make up the difference.
“I commend the work of Superintendent Janis Duran and am pleased that the Board is focused on maintaining the current fiscal stability and continues to make progress on academic achievement,” said Sheila Jordan, Superintendent of Alameda County Schools.
As Vision Hispana reported earlier this year, HUSD is facing a possible state takeover resulting in a loss of local control. It’s a solution that would not be good for the schools, but it may be the only solution.
“State takeovers are extremely costly for the community and highly disruptive to the educational process,” states the report. To read the report, go to www.acgov.org/grandjury/reports.htm.