The San Jose Unified School District has been accused of underfunding over $30 million in health and welfare benefits since 2017-18 by unions representing teachers, janitors, cafeteria staff and other employees.
The unions that filed grievances with the district over the alleged underfunding are:
- San Jose Teachers Association
- California School Employees Association
- American Federation of State, County and Municipal Employees Local 101
In a January letter from the three unions sent to union members, the SJTA, CSEA and AFSCME accused SJUSD of underfunding their health and wellness benefits since 2017-18.
The union representatives claim that “around 2017,” the district quietly switched from using “the authorized (full-time equivalent) number” — the number of all budgeted positions — to “the active FTE number” — only filled positions — to determine the basis for the payout. This change resulted in a discrepancy of millions of dollars.
The unions’ collective bargaining agreements specify that the district must calculate the Health and Welfare Fund contributions using authorized FTE, not active FTE.
FTE refers to the number of hours an employee works in the context of a full-time schedule.
Foothill-De Anza Faculty Association President Tim Shively is not involved in the dispute, but provided insight because of his experience in labor bargaining.
Shively described feeling a sense of “befuddlement.”
“Having it go on for so many years is rather disconcerting,” Shively said. “It just sounds huge, and of such a scope that there would have to be some either (a) grave error or intentional shuffling of money around to keep it away from health benefits.”
Jonathan Martinez, a teacher at Bret Harte Middle School, said he was “hurt” after learning of the underfunding at a SJUSD Board of Education meeting on May 8.
“Tell me, as a young teacher, why would I stay at a district that does not respect the dignity of my colleagues, their health and well-being?” Martinez said.
SJUSD Chief Business Officer Seth Reddy said that the school district is working diligently to reach an agreement.
“We understand the importance of benefits and compensation to all of our staff,” Reddy said. “Since this issue was identified by staff, and it was brought immediately to our signatory unions that this had occurred in the past, we’ve remained committed since then to making this right.”
Shively said he’s never seen financial mismanagement like what is allegedly taking place at SJUSD.
“Nothing on that scale,” Shively said. “Usually it’s more a question of how money is set aside, rather than money not put in the appropriate place.”
SJTA President Renata Sanchez said that the SJTA proposed a repayment plan to the district that would include an additional 1%-1.5% in interest.
“We were offering to the district to pay that back in the amount of $3 million each year over 10 years, or until the fund was paid back, with the option that if they wanted to make bigger payments, they could,” Sanchez said.
The San Jose Unified School District and the unions have yet to reach a mutually-agreed-upon plan to pay back the over $30 million.
La Voz reached out to SJUSD for comment.
The next board meeting is scheduled for today, May 22, at SJUSD’s headquarters in San Jose at 855 Lenzen Ave., with a pre-meeting rally with union leaders beginning at 3:30 p.m.
