Quotes By Source
Smith addresses overspending and dangerously low reserves, confirming recall advocates claim that CUSD is a district in crisis
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Dennis Smith, The Orange County Register "At 2 percent, every decision is a crisis."

Reform advocates have exposed CUSD's financial mismanagement and corruption for years, often referring to CUSD as "a school district in crisis." Smith is the interim Superintendent of the Capistrano Unified School District.


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District confirms years of deficit spending, confirms reform advocates claims of Fleming Trustees' fiscal irresponsibility
Sam Miller, The Orange County Register "The district has spent more than it has taken in for five of the past six years, resulting in a $4.1 million deficit in this school year and a $6 million shortfall in 2005-06. Its reserves are a little higher than the legally mandated 2 percent."

Miller is the South Orange County education reporter for The Orange County Register.
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Smith presents plan to end years of irresponsible spending habits of Fleming Trustees
Sam Miller, The Orange County Register "Superintendent Dennis Smith on Monday presented a general plan of cuts, transfers and new revenues that he said will get the district out of the habit of spending down reserves and failing to plan for teachers raises. The adjustments, which were not voted on by trustees Monday, will be in the budget the board considers in June."

Miller is the South Orange County education reporter for The Orange County Register.
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CUSD spokeswoman prepares district for staff cuts
Beverly De Nicola, The Orange County Register "The next step will be to fine-tune it and figure out how much this will affect people. Because when you cut $13 million, you cut people."

De Nicola is the spokeswoman for the Capistrano Unified School District.
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Smith's plans for cuts and increased revenues
Sam Miller, The Orange County Register "Eliminating some bus routes with few riders and consolidating some bus stops, for a savings of about $1 million; Raising facilities use fees and selling obsolete school buses, part of a plan to raise about $400,000; Cutting staff positions to save about $4.2 million, including $2.1 million in teacher salaries."

Officials don't know whether the cuts will come from laying off people or not filling positions of employees who leave. Teachers under contract can't be laid off, as pink slips would have had to have gone out before March 15. Miller is the South Orange County education reporter for The Orange County Register.
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Smith's four guiding principles in budget planning
Sam Miller, The Orange County Register "Smith last week said he had four guiding principles in budget planning: ending deficit spending; carrying a larger reserve; planning with multiyear projections; and budgeting teacher raises in advance."

Miller is the South Orange County education reporter for The Orange County Register.
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Trustees' attempt to sell surplus land to cover budget deficits comes up short
Sam Miller, The Orange County Register "Trustees also agreed to try again to sell land in Laguna Niguel, a month after bids for the 2.4 acres on Paseo de Colinas came in smaller than expected. The largest bid was $4.8 million, below the $6 million minimum required. The school district reappraised the land and has set the minimum bid at $4.8 million."

Miller is the South Orange County education reporter for The Orange County Register.
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Smith's four guiding principles for the budget, addresses automatic allocation for teachers' raises
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Smith, The Orange County Register "You’ll see on Monday, we have (four) guiding principals for the budget: We can’t deficit-spend, we have to build up our reserve, we have to look at multiple-year projections. The fourth one is you have to allocate for your compensation. You have to budget something aside. Other than that, you’re in the middle of the year and teachers say, 'We want 4 percent' and we don’t have 4 percent. It doesn’t work! You end up giving it anyway."

Smith is the Superintendent of the Capistrano Unified School District.
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Trustees to consider millions in budget cuts, leasing out district office space to raise $400,000 per year
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Jonathan Volzke, The Capistrano Dispatch Capo Unified Trustees on Monday [May 7] will consider how to cut millions of dollars to balance their budget. Also on the agenda: leasing out district office space to raise $400,000 a year. The meeting is at 7 p.m. at district offices on Valle Road."

Volzke is the publisher of the Capistrano Dispatch.
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Teacher raises will strain district with $4 million more in cuts beyond $9 million shortfall already identified
Sam Miller, The Orange County Register “Union officials figure the raises mean 8.19 percent more total pay over two years. The raises could mean more cuts for CUSD, which had already faced a $9 million shortfall after years of deficit spending. A package of proposed cuts will be announced next week by new Superintendent Dennis Smith.”

Miller is the South Orange County education reporter for The Orange County Register.
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Surplus property sale delayed due to low bids, could strain budget
Sam Miller, The Orange County Register "The real estate sale Capistrano Unified needs in order to balance its 2007-08 budget will be delayed at least a couple months, after bids for the district's surplus property came in lower than expected. The district is counting on the sale – which has been planned since 2004 – in both its budget planning and its teacher negotiations."

Miller is the South Orange County education reporter for The Orange County Register.
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Land sale delay could affect teacher salaries and retirement fund
Sam Miller, The Orange County Register "Part of the district's offer to teachers includes a 0.75 percent pay raise once the land sale goes through; waiting on the sale would mean a delay for when teachers would see that raise, if agreed to. And CUSD's 2007-08 budget projections, to which trustees are still looking to make cuts, depends on the land sale to erase a $2 million-per-year annual debt the district owes to a public retirement fund."

Miller is the South Orange County education reporter for The Orange County Register.
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No part of budget should be exempt from cuts
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Anna Bryson, Laguna Niguel News “I hope there are no sacred cows ... If there has to be pain and we have to tighten our belt, I think there should be no arena that is [exempt from cuts].”

Bryson is one of the ABC Reform Trustees.

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District says deficit spending and flattening enrollment caused budget crisis
Eric Hall, Laguna Niguel News “Capistrano is facing significant budget challenges because of two converging forces: three of four years of deficit spending, and flattening enrollment ... It has caused us to pause and take a look at making budget reductions.” Hall is CUSD's interim deputy superintendent of business and support services.
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Trustees should have anticipated teacher salary increases
Ronda Walen, Laguna Niguel News “You’d think they would anticipate a salary increase and build it into their budget ... Stability is everything.” Walen is president of the 2,000-member union for classified workers.
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Even with cuts, not enough to pay teacher salary increases
Sam Miller, Laguna Niguel News “Even with the expected cuts, CUSD would have little left over to pay salary increases – about $3.7 million, or about 1.5 percent more for all employees. Raises typically are nearer to the state-allocated Cost of Living Adjustment, which CUSD expects to be more than 4 percent.” Miller is the South Orange County education reporter for the Orange County Register.
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McCully blames $9 million shortfall on bad decisions
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Jonathan Volzke, The Capistrano Dispatch "District officials are grappling with a $9 million shortfall, which interim Superintendent Chuck McCully has laid on the shoulders of bad decisions: a repeated practice of spending next year’s money this year and continually dipping into reserves rather than making cuts along the way." Volzke is the publisher of the Capistrano Dispatch.
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McCully says district could save with in-house lawyer
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Jonathan Volzke, The Capistrano Dispatch "McCully also announced the district should consider hiring an in-house lawyer to cut its $2 million legal bill..." Volzke is the publisher of the Capistrano Dispatch.
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Trustees cut 22 positions, but more cuts needed
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Jonathan Volzke, The Capistrano Dispatch "Trustees this month approved eliminating 22 positions, but still face more than $4 million in cuts."

Volzke is the publisher of the Capistrano Dispatch.

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CUSD eliminates top guidance counselor as budget-cutting measure
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Debbie Morgan, The Orange County Register "I hope they find somebody with a heart as big as their brain to run it. And that they invest time and money to keep it going. It has been a true life link for a lot of people, parents and kids."

A week after the district eliminated her job as top guidance counselor in CUSD as a budget-cutting measure, Morgan expressed her hopes for the district's guidance center.
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PTA leader presumes to know what's best for Morgan and ignores impact on children
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Jennifer Timm, The Orange County Register "She [Debbie Morgan] has a lucrative business opportunity waiting for her outside the school district. Parents will pay for her. She has an established client base. She hasn't asked for one, but she's got one."

Spoken like a true PTA political operative -- excuse the district's financial faux pas and downplay the real, unfulfilled needs of the kids, which will be made all the worse with the termination of the district's top guidance counselor. Thanks, Jennifer. Bet you won't lose any sleep over this one. See you at the next PTA-sponsored parent fundraiser.
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Parent expresses concern about impact elimination of guidance counselor will have on children
Donna Furniss, The Orange County Register "We're forgetting about the middle-of-the-road child. My child is one of them. The only place I got help was Debbie [Morgan]. He has a 2.7 GPA, but he's bringing it up. Why is he bringing it up? He had someone who cared."

Furniss is a CUSD parent.
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Trustee Bryson cautions district's reserves dangerously low
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Anna Bryson, The Orange County Register "We're at 2.4 percent (reserves). Two percent is considered risky. We have to look at everything and be prepared for everything to protect the taxpayers." Bryson is one of the "ABC" reform slate candidates, who won a seat on the CUSD Board of Trustees in the November 2006 general election. Bryson said she is particularly worried about the district's reserves, which have been drawn down in recent years to pay for employee salary increases without cutting services.
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Trustee Bryson considers FCMAT to help with CUSD's fiscal crisis
Sam Miller, The Orange County Register “Anna Bryson said she asked district staff to put together a report on what role the Fiscal Crisis and Management Assistance Team could play in CUSD, and how much it would cost to hire FCMAT.” FCMAT conducts management reviews for California school districts, charter schools and community colleges. Its experts can review and recommend policies in various areas of education administration, ranging from student transportation to special education. Miller is the South Orange County education reporter for The Orange County Register.
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Enormous salary increases paid to two of CUSD's worst offenders
Mike Winsten, Trabuco Canyon News “CUSD provided three enormous salary increases to two of CUSD’s most controversial deputy Superintendents -- Dan Crawford and David Doomey. ... Doomey (who many believe is the person most responsible for creating the CUSD portable classroom crisis) admitted CUSD had provided “misinformation” to the public as to how CUSD would fund the new $52,000,000 administration office ... During the recall, Crawford was roundly criticized for publishing a letter in the O.C. Register that grossly understated the total number of portable classrooms actually utilized by CUSD.”
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Soderberg critical of Trustees' budget decisions that repeat same mistakes
Vicki Soderberg, The Orange County Register “If you budgeted in salary increases for employees, you wouldn’t have to cut anything ... You’re taking this new money and putting it in other places, and you’re telling me you have to cut? It seems like a continued pattern.” Soderberg is president of the Capistrano Unified Education Association, a teachers union.
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Trustees avoided cuts and paid raises during recall by depleting reserves
Sam Miller, Saddleback Valley News “It is a turnaround from last year, when the district gave teachers a raise, reinstated spending such as the popular class-size reduction program and avoided cuts that officials had warned were pending. The district avoided those cuts last year by spending reserve funds down to the legal minimum of 2 percent. No such cushion exists this year. Those reserves are gone, while services, programs and employees must still be funded.”
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McCully identifies Trustees' budgeting failures and challenges
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Charles McCully, The Orange County Register “The district was in essence spending next year’s money this year ... We have to get out of that cycle and get back on a normal cycle ... The $9 million for next year will be much more difficult ... And it will have a more significant impact on the overall total picture.” Interim Superintendent McCully announces major cuts this year and next, ending a brief period of optimism that had depended largely on spending down reserves. Though the district will receive 8.5 percent more revenue from the state, McCully suggested mid-year cuts of about $9.4 million at the Dec. 11 board meeting, and said the district will work on eliminating at least $9 million in additional ongoing costs beginning next year.
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