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Council Deadlocks on School Funding Increase

By Anita Varghese
Special to The Lookout

May 26 -- After more than three hours of heated discussion and accusations, the City Council Thursday night remained deadlocked on whether to boost City funding to the School District by $530,000 in the upcoming fiscal year.

With all seven School Board members present and Council member Kevin McKeown unable to vote because he is under contract with the District, the council failed to come up with the four votes needed to increase the annual $6.5 million the City gives local schools under a 2004 joint use agreement. The district, however, will receive an additional $220,000 increase for inflation.

The key dividing issue was “transparency,” with some council members worried District officials had improperly silenced former chief financial officer Winston Braham, who resigned last fall after opposing a teachers pay hike, and required parents of Special Education students to sign confidentiality agreements.

Council members Herb Katz and Bobby Shriver led the opposition to the funding increase, floating a motion to hold the money in reserve until the District rescinds all current “gag orders” and agrees not to enter into any other similar agreements with financial officers or parents.

“No parent should live in fear, and no student should live in fear for any reason,” said Katz, whose two sons were special education students. “We have a great school district, but there is a glitch, and that glitch has to be changed.

“This is not micromanagement,” he added. “This is conscience on a public entity that should be totally transparent.”

Shriver said he, as a public official, could not vote to enter into a financial agreement with another public entity that “gags” its financial officials from speaking about financial matters.

Braham’s settlement agreement includes two clauses that prohibit the former CFO from speaking publicly about District finances without permission from District officials and bars him from making disparaging statements.

Shriver said the clauses were egregious and never should have been required by the District. Both of the clauses were lifted before Thursday’s meeting,

On the other side of the dais, Mayor Richard Bloom and Council member Ken Genser pushed for an agreement that would allow the School Board to “achieve transparency goals” without having the Council impose specific policies and policy language.

With Council members Bob Holbrook and Pam O’Connor unable to side with either faction, the Council agreed to hold the additional funding in reserve until “various unresolved issues” are addressed.

If the council remained deadlocked, those who testified also failed to agree on the key issue of “transparency.”

Paul Silvern, who chairs the District’s Financial Oversight Committee, argued that the City’s budget process is less transparent than the District’s, which involves numerous public meetings of his committee and the School Board, must be reviewed and approved by the Los Angeles County Office of Education and must undergo an annual audit by an independent certified public accountant.

On the other side, parents of Special Education students complained of “secret deals” that feature “gag orders” in exchange for extra District services for students with special needs that go beyond what is in the student’s individual education plan.

“The use of gag orders is not limited to the Braham situation,” said Tricia Crane, a parent of a former student and member of the Special Education District Advisory Committee.

Crane said she signed a “confidential agreement” with advice from a personal attorney in order to get extra services for her son, who is now enrolled in a private school.

“Parents are routinely being asked to sign gag orders in order to secure services for their children,” she said. “As a result, parents not only live in fear of losing services for their children through an inadvertent slip of the tongue, but we as a community have no access to the financial records and no idea how many dollars are being spent as a result of these agreements.”

Crane said “secret deals” hurt students with special needs, because the extra services provided are not part of the students’ official school record.

As a result, they may or may not be transferred or honored if students attend a different district, where officials can say the “extra services” are not required in their efforts to provide an individual education plan acceptable under federal or state law.

School Board President Kathy Wisnicki said the confidential agreements are reached properly and are necessary in the District’s efforts to provide Special Education services in-house, rather than contract with non-public agencies whose service rates may be expensive.

The District also is trying to avoid litigation with parents who allege failure to provide adequate Special Education services, Wisnicki said, adding that confidentiality is necessary because each education plan and confidential agreement is specific to the individual student.

“What is right for one student is not always right for another,” Wisnicki said. “The confidentiality may be an attempt to minimize parent concerns over certain services that may not be research-based or best-practice being offered to one student and not offered to another.

“We try to resolve disputes at the District level so that we don’t set ourselves up to be in an adversarial position. We are following a practice that is followed in many other districts.”

There may not be a specific line item in the District’s budget labeled “dispute resolution,” Wisnicki said, but costs incurred to provide services under confidential agreements are accounted for in other budget line items.

Under the terms of the five-year “Master Facility Use Agreement with Santa Monica-Malibu Unified School District,” the City agreed to boost the $6.5 million in annual funds with a yearly inflation increase and a separate augmentation to be determined by the City’s and District’s budget outlook.

This fiscal year’s inflation increase has been calculated at $220,000 with the augmentation determined to be $530,000. The District will still receive the base payment and the inflation increase.

 

“No parent should live in fear, and no student should live in fear for any reason.” Herb Katz

 

 

"We are following a practice that is followed in many other districts.” Kathy Wisnicki

 

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