The Business Perspective
Los Angeles Business Speaks Out

By Rusty Hammer
President & Chief Executive Officer

September 13, 2002

This week, after hearing from the Superintendent of the Los Angeles Unified School District (LAUSD), Gov. Roy Romer, the Chambers Board of Directors voted unanimously to endorse the LAUSD facilities bond (Measure K) scheduled for the Nov. 2002 ballot. The $3.35 billion bond will be used to complete 120 new schools and 80 additions and expansions.  Once these projects are completed, LAUSD should have an additional 112,000 classroom seats.

The bond also includes stronger oversight and accountability to avoid the pitfalls of the last bond (Proposition BB).  A new charter has been created between LAUSD and the oversight committee that includes an independent oversight consultant and legal counsel; enhances legal powers; and allows the oversight committee to review projects before going to the Board for approval.

Recognizing the importance of investing in human capital, coupled with the additional oversight built into this bond, the Board felt it important to endorse Measure K.  We know that the workforce of tomorrow is sitting in LAUSD classrooms as I write this message. We know that these classrooms are overcrowded and that the only way to alleviate the overcrowding and get every child back to a 180-day school year is by providing the additional seats this bond issue will fund.  We know that unless we continue to improve the quality of education in Los Angeles, our workforce will not be prepared for the 21st Century. We are encouraged by the improving test results. They show that there is a change brewing in LAUSD.

Our message to Gov. Romer, however, is not one of congratulations, but rather one of concern.

The Chamber is concerned that without added steps, this bond will merely become another Prop. BB, or an attempt at throwing money at a problem.  As a result, we further recommend the following steps be taken ay the LAUSD Board:

1. Develop and adopt a districtwide policy that embraces the Small Learning Communities strategy for all future school facility projects.  The success of the Small Learning Communities strategy has been well documented in research over the last 15 years.  The benefits of smaller schools are significant:  higher student achievement, greater equity, better preparation for higher education, lower truancy and dropout rates, greater teacher satisfaction, and increased safety. LAUSD has made progress on this issue, but more needs to be done.  Several states and school districts have embraced this concept for new school construction, including Florida and Mississippi.

2. Adopt additional policies that address the need for enhanced oversight and accountability:

• Allowable Costs:  The Board and Oversight Committee should finalize its policy that states what costs are chargeable to the Prop BB and 2002 bond programs.  Additionally, ballot language regarding use of bond money for salaries should be clarified. The Chamber strongly believes that allowable costs must be directly related to the new facilities program and suggests that this language be clarified and communicated to the general public.
• Oversight Committee Structure:  For the five new appointments required by state law, the Chamber strongly urges he Board to appoint members to the Oversight Committee who have significant experience with infrastructure projects of this size, scale, and complexity.  Oversight committee members should have expertise in critical areas such as construction, finance, engineering, architecture, law and planning.
• Reporting Information:  The District should provide the Oversight Committee with useful, easy to understand data and information that is needed to fulfill its oversight responsibilities.

3. Lastly, the Board should create a stronger vehicle for effective local community input and support. In order for this bond to be successful, LAUSD must avoid the pitfalls of the last bond and provide the impacted community with a voice on issues related to fiscal accountability, school structure, site selection, community access, and outreach.

With these additional items in place, the Chamber believes that Measure K will be a worthwhile investment that the community can feel confident will pay off in the long run.  We call upon Gov. Romer and the LAUSD Board to adopt these measures that will help to assure voters that taxpayers dollars are used for their intended purposes of improving local schools and relieving classroom overcrowding.

And that’s the Business Perspective.

The Business Perspective is a weekly opinion piece created to provide a thought-provoking analysis on current issues.