PETITIONERS OPENING COMMENTS

Scott Tracy

LCUSD Governing Board Member (2001-2013)

1

CA Education Code

§35500.

“ … local educational needs and concerns shall serve as the basis for future reorganization of districts in each county.” Effective: January 1, 2001

2

LOCAL EDUCATIONAL NEEDS AND CONCERNS

0

5

10

15

20

25

30

35

40

K 1 2 3 4 5 6

2015-16 Average Class Size

Palm Crest (LCUSD) Mountain Ave (GUSD)

3

LOCAL EDUCATIONAL NEEDS AND CONCERNS

2015-16 Average Class Size Percentage

Mountain Avenue1 Palm Crest2 Higher Than

(GUSD) (LCUSD) Palm Crest

K 24 20 20%

1 26 20 30%

2 26 20 30%

3 27 19 42%

4 36 29 24%

5 35 26 35%

6 36 25 44%

1 2014-15 School Accountability Report Card; Mountain Avenue Elementary; Updated 1/8/2016; http://www.gusd.net/cms/lib03/CA01000648/Centricity/Domain/3/SARC1415MountainAve.pdf; p. 20. 2 2014-15 School Accountability Report Card; Palm Crest Elementary; Published During 2015-16; http://sarconline.org/SarcPdfs/7/19646596014658.pdf; p. 11.

4

LOCAL EDUCATIONAL NEEDS AND CONCERNS

0

2

4

6

8

10

12

14

PalmCrest

(LCUSD)

MountainAve

(GUSD)

Number of Classrooms with 20 or Fewer Students

0

1

2

3

4

5

6

7

8

9

PalmCrest

(LCUSD)

MountainAve

(GUSD)

Number of Classrooms with 33 or Greater Students

5

LOCAL EDUCATIONAL NEEDS AND CONCERNS

0

100

200

300

400

500

600

700

La CañadaHS

200:1

CrescentaValley HS

600:1

High School Counselor Caseload

6

LOCAL EDUCATIONAL NEEDS AND CONCERNS

LA CAÑADA UNIFIED HAS NO SPLIT CLASSES

7

LOCAL EDUCATIONAL NEEDS AND CONCERNS

8

DELAYED IMPLEMENTATION

There is precedent for delayed implementation

9

CONDITION #9

Would the proposed reorganization cause a substantial

negative effect on the fiscal status of the districts affected?

10

CONDITION #9

9 9 9 9

19 19 19

58 58

31

0

20

40

60

80

100

120

140

2013-14 2014-15 2015-16 2016-17

GUSD Released 117 Sagebrush Students Now Attending LCUSD Schools

Since Transfer Negotiations Began

11

CONDITION #9

• https://drive.google.com/file/d/0B_VXoCRhqulGbDZ0TDNxcXRRcU0/view

https://drive.google.com/file/d/0B_VXoCRhqulGbDZ0TDNxcXRRcU0/view

12

13

14

15

16

17

CONDITION #9

Would the proposed reorganization cause a substantial

negative effect on the fiscal status of the districts affected?

18

CONDITION #9

FISCAL CONCERNS CLAIMED BY GUSD

• Loss of state funding re: transfer students

• Allocation of bonds and related property taxes

19

CONDITION #9

LOSS OF STATE FUNDING RE: TRANSFER STUDENTS • GUSD’s stated preference and current

practice relinquishes all claims for ADA reimbursement prior to the transfer

• LCUSD has agreed to relinquish all claims for ADA reimbursement after the transfer

20

CONDITION #9

PROPERTY TAXES AND BONDS

No substantial impact to GUSD since Sagebrush tax base is insignificant –

just 1.8% of GUSD’s tax base

21

CONDITION #9

PROPERTY TAXES AND BONDS

FISCAL CONCERNS CLAIMED BY GUSD:

• Bonding capacity

• Increased tax burden on non-Sagebrush taxpayers

22

CONDITION #9

PROPERTY TAXES AND BONDS

Sagebrush - as a percentage of GUSD’s tax base - is expected to decline further due to:

• Major development projects in Downtown Glendale

• A single property sale in July 2015 alone increased GUSD’s tax base by $100 million

23

CONDITION #9 PROPERTY TAXES AND BONDS

$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

Sagebrush Tax Base One Year Increase inGUSD's Tax Base

GUSD Tax Base

2015-16 Assessed Valuation

24

25

26

CONDITION #9

PROPERTY TAXES AND BONDS Under normal circumstances – • Impact on GUSD’s 50,000+ non-Sagebrush

taxpayers would be $1.10 annually per $100,000 AV

• GUSD taxpayer with a home assessed at $500,000 would pay $5.50 per year

27

CONDITION #9

PROPERTY TAXES AND BONDS However, GUSD refinanced its CABs • Fixed rate of $60 per $100,000 AV throughout its

term – up $14 • GUSD claims the Territory transfer would add

one additional year to the life of the bond • Ignores delayed implementation benefits to

GUSD - five additional years of tax payments from Sagebrush taxpayers – nearly $2 million

28

CONDITION #9

NO SUBSTANTIAL NEGATIVE EFFECT ON GUSD’S FISCAL STATUS

• Number of students who would transfer is insignificant

• Sagebrush tax base is insignificant

29