Sunday, May 8, 2016

Moody's Issues Degraded Bond Rating for the PUSD, Board of Ed Grants Teachers a 6% Raise

It seemed to be pretty much a foregone conclusion that the Pasadena Unified Board of Education would be awarding the United Teachers of Pasadena the 6% raise it had demanded, along with commensurate increases in health and pension benefits. There was a somewhat protracted period of loud teacher demonstrations, and an obviously gratuitous appearance of contentious negotiation, but in the end the union got most of what it wanted.

Many of the current Board of Education members have received money and political endorsements from the United Teachers of Pasadena in the past. As examples, the three most recently elected Board of Ed members, Roy Boulghourjian, Patrick Cahalan and Sierra Madre's own Larry Torres, received significant amounts of cash in the form of campaign donations from various union sources, including the hardly disinterested UTP. Courtesy of the Pasadena Star News, you can read more about that here.

Yesterday the Star News described the benefit and salary increases won by the UTP in this way (link):

After months of negotiation, the Pasadena Unified School District and the United Teachers of Pasadena have reached a tentative multi-year contract agreement that gives teachers a pay boost.

The contract was hammered out on Wednesday during a fact-finding hearing, and includes a 6 percent salary increase effective during the current 2015-16 school year and 2016-17. Salary negotiations will open again for the 2017-2018 school year.

Depending on how much money will be coming in from state government coffers for the upcoming school year, teachers may also get an additional 3 percent salary increase.

Union president Alvin Nash called the agreement an important step forward. “I’m confident that all of the Union members felt that this is the best agreement we could reach,” Nash said.

District will also pay any increases in health and welfare benefits for teachers for the next two years will also be paid by the school district, and be renegotiated for the 2018-19 school year.

Nobody should be at all surprised. And ask yourself this one. Have you received a 6-9% raise retroactively to 2015? PUSD teachers are going to do so.

Now occasionally timing is everything, and that could be the case here. As these generous final salary and benefit increase details were being worked out, Moody's Investors Service, which numbers among our nation's leading bond rating firms, was roundly trashing the PUSD's shaky financials this way (link):


It appears that the PUSD, along with its rented Board of Education, is digging itself quite a financial hole. However, there is an upside here. The chances of them being able to peddle any further bond issues in at least the near future have now grown increasingly unlikely.

But who knows? Obviously they pretty much do as they please. No matter how ridiculous the results, or disadvantageous to those paying the bills or suffering the consequences.

sierramadretattler.blogspot.com

16 comments:

  1. Nope. No disconnect here.

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  2. Give these people a try as they are connected to State, County and local cities governments investment restrictions but profit for all is primary to this organization. http://higginscapital.com/

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  3. Has any government agency ever given out pay raises to its employees days after having a their bond rating dumped by Moody's? This might be a first!

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    Replies
    1. Read or watch The Big Short.
      Moody's is a corrupt source.

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    2. The banks that funded these bonds are not? Same movie, dude.

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    3. The banks were absolutely filled with criminals. And Moody's is corrupt. Guess I should have added "too"

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  4. This comment has been removed by a blog administrator.

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  5. I get the feeling that PUSD is basing it's finances on the hope that CA Lotto sales double for a year.

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    Replies
    1. You have to be in it to win it.

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  6. The city council and it's city employees have been a total discrace, just think, the taxpayers who voted for the UUT taxes also made a huge mistake also! I wonder what it will take to wake them up?

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    1. Their bill for July, 2016. Besides the 66% UUT increase, the water and sewer bills have ANOTHER increase.

      Instead of the UUT sunset that would have made the rate 6% on that same date, we get to pay 10%!! How special.

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    2. it's good to be king

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  7. You really should get real information about where PUSD spends its money before you make these statements against the teachers. PUSD has been cutting teachers positions due to declining enrollment but adding District positions for many years becoming incredibly top-heavy (a practice they are maintaining- this year they have created two new District positions for the principals at Blair and PHS). This agreement came after Fact Finding- a process that had an outside mediator examine the Districts financial records and make recommendations. The District has been close to being fined by the state for not spending enough in the classroom (on teachers) and the School Board is doing it's job making sure the District does not receive these fines by spending the money where it is supposed to be spent. If Moody's downgrades the District for spending it's reserves, maybe the District should stop spending it's money on more and more District level positions.

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  8. Just remember tax payers and home owners and school district employees (runts); once a city files BK, homeowner values drop (on average) 40% and neighboring cities' home values drop 25%-35%. Enjoy and party on! States cannot file BK (constitutionally).

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  9. Those who can, Do. Those who can't Teach, and rob banks.

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