Santa Clara Unified: Budget Study Session, Caserta Lawsuit Settlement

Santa Clara Unified students have been hitting the books and now it’s the Board of Trustees’ turn to get a lesson on the district budget. Also, at the beginning of the meeting, they decided on a settlement agreement in the Dominic Caserta lawsuit.

 

Budget Study Session

A “Budget Study Session” sounds like you need copious amounts of caffeine and a big nap afterward, however, Mark A. Schiel, Deputy Superintendent of Operations / Chief Business Official, made the ordeal on Tuesday, Oct. 15 pretty painless. Schiel went over some basics before taking some time to review the different funds in the budget and their use. Notably, the deferred maintenance fund covers the repair or replacement of buildings. Recently, the district did a School Facilities Needs Assessment which identified $1.2 billion in total facilities expenditures over the next 20 years. The deferred maintenance fund currently has $10 million, according to Schiel.

Looking at the General Fund, last year they had $390.9 million in total revenue: 81.6% from property taxes, 2.2% from federal sources, 9.5% from the state, and 6.7% from local sources. Schiel didn’t want to claim that the sky was falling but wanted the board to be mindful of property tax trends. Over the past 40 years, they were used to seeing a 7.11% increase in property taxes, however, last year finished at just 6.77% and the five-year average was 6.85%.

Last year, General Fund expenditures were $409.2 million which is divided into eight categories: certificated salaries, classified salaries, employee benefits, books and supplies, services and operating, capital outlay, and other. Schiel pointed out that all salaries and benefits were 86.5% of total expenses last year. Of the $390.9 million of revenue, 90.6% of that goes towards salaries and benefits.

Schiel said that they are working on enrollment projections and staffing ratios. They hope to hear more at the end of January 2025, according to staff. One goal is to collaborate with special education to unify the enrollment projection process.

Over the last four years, the district has made some changes in budget development and operational practices which have yielded some good results. According to Schiel, budget reductions of approximately $6 million were implemented before the 2024-2025 fiscal year.

Looking forward, the district is budgeting for long-term items, including a technology and vehicle replacement schedule. Also, with testing data coming to an upcoming meeting, the board wants to make sure that their financial investments are yielding the results they want.

 

Caserta Settlement

After years of closed session discussions regarding Dominic Caserta and his lawsuit against Santa Clara Unified for leaking his personnel file, the district surprisingly voted on a settlement. Because this happened in closed session, Board President Vickie Fairchild’s report to the public was the extent of the discussion on this item.

“The board voted to approve the settlement of the civil action Caserta v. Santa Clara Unified School District, et al., four votes to one,” said Fairchild. “Plaintiff has agreed to dismiss the entire action with prejudice, release the district and its employees from any and all claims arising out of the events set forth in the action, and resign his employment with the district on May 1, 2028.

“In exchange, the district and its Joint Powers Authority will pay a combined $1,579,000 to the plaintiff,” continued Fairchild. “The district will pay its share of the plaintiff’s medical benefits until the plaintiff reaches the age of 65, except as specified in the agreement. The district will provide plaintiff a neutral reference unless otherwise required by law and confirm the authenticity of his last three evaluations.”

Two individuals must pay $5,000 each and one individual must pay just $1.

Caserta was a teacher at Santa Clara High School until he was placed on paid administrative leave. He also resigned from the Santa Clara City Council, lost his teaching job at a local community college, and ended his campaign for the Santa Clara County Board of Supervisors. With this settlement agreement, the district has dodged a much pricier legal battle.

 

The Santa Clara Unified Board meets next on Thursday, Oct. 24. Meetings are live-streamed on the district’s YouTube page, and agendas are posted on their website.