1. BARGAINING UPDATE 3/28/12
District Continues to Negotiate with CUTA and LIUNA
An overall compensation reduction of <10% would cover the projected $5M 2012-13 deficit.
Carlsbad Unified School District (CUSD) is currently in bargaining negotiations with Carlsbad Unified Teachers
Association (CUTA) and Laborers International Union of North America (LIUNA) Local 777. Together, CUTA and
LIUNA represent more than 92% of all CUSD employees.
To date, meetings, which began in Fall 2011 and continue on a regular basis, have been cordial, but agreements
have not been reached with either group. CUSD is optimistic that participants’ shared desire to minimize adverse
impacts of the District’s current and future financial challenges upon student learning and achievement will result
in a positive outcome.
Financial Status
As shown in the chart above, the amount of funding the District receives from the State has decreased
dramatically over the past five years; from $12.7M in 2007-08 to $4.5M in 2011-12. The projected State funding in
2012-13 is only $3.2M. With the drying up of this once-secure stream, funding for public school districts in
California is now locally driven. As our region is still mired in a significant recession, local property taxes, a major
source of revenue, are projected to remain flat.
The District now expects to have nearly $3 million more in reserves at the end of 2011-12 than estimated earlier,
bringing the 2012-13 estimated budget deficit from $7.8M to $5M. The change is a combined result of an increase
in revenue and decrease in expenditures. The revenue increase derives from a variety of sources. The expenditure
decrease derives primarily from cuts to personnel and programs approved by the Board in November 2011 and in
February 2012.

2. The Need for Across-the-Board Compensation Reductions
Public school districts are required to maintain a 3% reserve to be classified as solvent and retain control over
operations. The District will be able to meet its current financial commitments for 2011-12. As noted above, the
projected 2012-13 deficit is $5M. The estimated 2013-14 deficit could be as high as $10.3M.
Across-the-board compensation reductions are needed to cover the deficit without the need to further increase
class sizes, follow through on layoff notices issued to more than 100 teachers and pursue other undesirable
measures that could negatively impact student learning and achievement.
 Compensation for CUTA employees accounts for 69.80% of all salaries and labor-related costs; LIUNA,
22.26%; the remainder, 7.94%.
 The cost of a 1% compensation reduction equals approximately $395,000 for CUTA; $126,000, LIUNA;
$45,000, remainder.
 The cost of 1% for all employees adds up to more than $566,000, meaning that an overall employee
reduction of just under 10% would cover the projected $5M 2012-13 deficit
 These reductions would not, however, cover the entirety of the projected $10.3M 2013-14 deficit.
 Non-union staff – primarily the District’s leadership team and site administrators – will adhere to the
same bargaining results and timeframe in terms of compensation reductions to which CUTA and LIUNA
agree.
Negotiations
 Current CUTA financial proposals under consideration include reducing a percentage of employee
compensation by implementing furlough days, eliminating retiree benefits and decreasing other benefits
for new hires, and reducing certain employee benefits. Also being discussed are non-financial issues such
as involuntary transfers.
 Current LIUNA financial proposals under consideration include reducing a percentage of employee
compensation by implementing furlough days and restructuring certain employee benefits. Also being
discussed are non-financial issues such as clarification of language/terminology, procedural changes and
other modifications to existing agreements.
More Information
District: www.carlsbadusd.k12.ca.us www.carlsbadusd.k12.ca.us.blogspot.com
Unions: http://cutanews.org/ http://www.liuna777.org/LiUNA_Local_777/Carlsbad.html