1 of 12

All Labor

Discussion about

OUSD Budget and Healthcare Discussion

October 2024

2 of 12

Agenda

OUSD Budget and Implications

HBGB/Healthcare Update

3 of 12

Budget Update

OUSD’s Operating Surplus/Deficit has been a surplus ranging from $25 million to $127 million in the last 4 years.

While the district showed an operating deficit of 7.4 million in 2019-20, it increased its unrestricted total reserve by $2.5 million in that same year.

NO BUDGET CRISIS

4 of 12

Budget Update

OUSD’s Unrestricted Total Reserve has grown from $33 Million (or 5.59% of total outgo) in 2019-20 to $118 Million (or 13.69% of total outgo) in 2023-24.

The state of California requires a 2% unrestricted total reserve.

NO BUDGET CRISIS

5 of 12

Budget Update

OUSD has consistently and massively under projected its Unrestricted Total Reserve during 3 of its multi-year projections.

From 2016-17 through 2021-22 3rd year MYP projections, they were under by an average of $52 million.

The state requires the district to show that it can meet its obligations in year 3.

NO BUDGET CRISIS

6 of 12

Why are they doing this?

Austerity = Manufacturing a budget crisis to:

Close Schools (7 to 20 schools - High, Middle, ELEM )
Cut Positions
Justify employee paid healthcare

7 of 12

Health Benefits Governance Board

“Establish shared ownership and responsibility for quality and continued viability of health and welfare benefits.”

01

“Maintain at least two affordable medical plans.”

02

“Cover health and welfare benefits with minimum or no employee premium contributions.”

03

Established in 2015 between OUSD and eight “Signatory Unions”

8 of 12

Decision-Making & Funding Formula

Shared Governance Decisions made by consensus between OUSD (1 vote) and the Signatory Unions (1 vote)

AFSCME
BTC (Building Trades Council)
OEA
SEIU
Teamsters
UAOS

OUSD funds HBGB according to a formula:

(Base Funding Amount x prior year LCFF % change) x Authorized FTE = Annual Funding

9 of 12

OUSD wants to cancel HBGB

OUSD Sunshined in Sept to “Withdraw from the Health Benefits Governing Board (HBGB)”.

OUSD’s Goal:

Disband this group so they can negotiate directly with labor partners. Divide and Conquer Tactic.
Make unit members pay for healthcare. (Take-back)

10 of 12

Healthcare is not busting the OUSD budget

OUSD spends about the same as other districts on healthcare, but gets better value - 100% employer paid.

11 of 12

In fact, healthcare has been going down as a share of budget

Healthcare is not busting the OUSD budget

12 of 12

HBGB - Employer Withdrawal Language

VII. Withdrawal from Plans

1. District: If the District for any reason seeks to cease its participation in this Agreement and the HBGB, this may occur only through a coordinated bargaining process that Includes all Signatory Unions and the District similar to the one used to establish this Agreement. Withdrawal may occur only pursuant to a negotiated agreement or exhaustion of the legally required impasse process.