Public Statement from Superintendent Jane Russo

Preliminary Class Size Reduction Audit Status

April 25, 2007

The preliminary results of an audit of Class Size Reduction (CSR) in grades K-3 is now available to staff and the public. Santa Ana Unified School District initiated the audit on April 3 in response to issues that arose regarding modifications made to the program as of February 13. At its April 10 Board of Education meeting the District proactively expanded the audit to also include ninth-grade classes. Preliminary findings were presented at the April 24 Board of Education meeting.

We commissioned the elementary audit so that a thorough and independent analysis of the program would determine if there were reporting or implementation issues related to modifications at the elementary level. Preliminary results from the elementary program are outlined in the following sections.

Preliminary Results – Grades K-3

95% of Classes Met All or a Portion of CSR Requirements

Errors in maintaining class sizes which resulted in less funding represents less than five percent. Ninety-five percent of the District's classes have met all or a portion of the CSR requirements, which generates $13.5 million of the anticipated $15.5 million in State funding. The loss is 13% of the CSR anticipated revenue amount. It is considerable, and the District takes it very seriously.

We will take every measure in the future to ensure that the implementation, organization, and monitoring of all aspects of this program are fully compliant. Moreover, we will effectively communicate throughout our organization to successfully meet CSR requirements.

Two Areas of Concern Raised

While attempting to balance Class Size Reduction classes, inadvertent errors occurred in the program's procedures and implementation due to lack of clear direction and communication from District administrators. The two areas of concern were the incorrect use of class rosters to monitor the new classes and errors in implementation of CSR Option Two Guidelines. The roster errors may be unique to Santa Ana Unified School District, which is regrettable. However, the implementation errors underscore the fact that meeting complex Class Size Reduction guidelines is difficult for school districts especially those that have high mobility rates.

Making Up Shortfall

One way in which the District may make up the loss in expected revenue is through less student attrition in the 2007/08 school year. Currently the District staff projects a decline of 1,000. If our decrease is less than expected — as occurred at the beginning of the 2006/07 school year — we may experience less of a shortfall in 2007/08 and be able to make up the difference. Another way we may make up the loss is by adding it to the anticipated $12 million budget reductions for 2008/09.

Trouble Shooting Our System – Lessons Learned

This process was a lesson learned. It is more evident than ever that our priorities must include keeping lines of communication open with all employees, monitoring the dialog regularly, and revisiting the topic often in order to improve our communications. No teacher is to blame.

The key is to understand the complexity and nuances of what the issues were and how they can be effectively addressed and resolved. We will soon begin the process by having the State's Fiscal Crisis and Management Assistance Team (FCMAT) review the implementation of CSR modifications.

Using the information provided through the audit and FCMAT, the District will be able to take appropriate corrective actions.

Final and complete audit findings are expected in the next month. This report will reveal a comprehensive analysis of CSR compliance.

As difficult as this CSR compliance issue has been for SAUSD, we are committed to resolving the implementation concerns so that we can maintain our focus on the priority of providing quality academic programs for our all students.