{"id":1925,"date":"2016-06-19T11:50:37","date_gmt":"2016-06-19T18:50:37","guid":{"rendered":"http:\/\/torrancecitycouncil.com\/?p=1925"},"modified":"2016-06-19T14:56:00","modified_gmt":"2016-06-19T21:56:00","slug":"tusd-reaches-labor-agreement-with-tta-district-reserves-plummet","status":"publish","type":"post","link":"http:\/\/torrancecitycouncil.com\/?p=1925","title":{"rendered":"TUSD Reaches Labor Agreement with TTA; District Reserves Plummet"},"content":{"rendered":"

\"TUSD<\/a>As part of a packed agenda<\/a>, TUSD is set to approve a collective bargaining agreement with the Torrance Teacher’s Association (TTA) at its forthcoming meeting Monday evening. Required financial disclosures designed to notify the public of the impacts of the proposed agreement show a drastic reduction in the amount of reserves held by the District. The current reserve amount approved by the Board in the most recent budget is $24.1 Million. That figure is set to drop to $7.2 Million, which is the minimum amount allowed per state law, by the 2017-18 school year.<\/p>\n

School Districts typically use their reserves to: (1)\u00a0manage cash flow, (2)\u00a0mitigate volatility in funding, (3)\u00a0address unexpected costs, (4)\u00a0save for large purchases, and (5)\u00a0obtain higher credit ratings.\u00a0Per state law, School Districts are required to maintain a minimum reserve of 3% of General Fund expenditures.<\/p>\n

As a result of the agreement with TTA the reserve will immediately drop to $ 21.2 Million (9.37%). The reserve is sharply reduced in 2016-17 to $13.2 Million (5.37%). It then falls even further to the minimally required $7.2 Million (3.01%) by 2017-18.<\/p>\n

The financial disclosures also reveal that the District is planning to run a $13.8 Million operating deficit in 2016-17, and a $7.7 Million operating deficit for 2017-18.<\/p>\n

Some of the highlights of the negotiated agreement with TTA include:<\/p>\n