A large group of teachers, parents and district officials came together to discuss three hefty issues: laying off staff, a possible total budget loss of $7.1 million and a potential parcel tax election.

Despite the gloomy nature of the topics, words of encouragement were spoken by District Teachers Association President Mike Boitz. Boitz said he was "constantly humbled" by his colleagues at Saratoga High School, praised Superintendent Cindy Ranii and called the district officials "second to none."

"We're well-supported by administrators who care about our kids, who care about the teachers," Boitz said. "We have a great mutual trust between our board, our community and our teachers."

The Feb. 26 meeting was requested by members of the association, who wanted to come up with alternatives to the district's plan to eliminate more than five positions.

Bob Peterson, chief business officer, presented data on the district's financial outlook. Last year, Peterson said, because of the economic environment, the district only received approximately $500,000 in local property taxes, significantly lower than the previously estimated $2 million.

As a result, the district is scrambling to cover that $1.6 million deficit—the shortfall plus loss of interest—in the budget for 2003­04.

And that's the "best-case scenario" that the district faces at the moment. If all of Gov. Gray Davis' proposed budget cuts are approved, which includes taking away basic aid funding, a percentage reduction in categorical programs and withholding the payment of excess local property taxes, the total could be as much as $7.1 million. The district's general fund budget is $25 million.

"That would be disastrous. That would cause a 25 percent reduction in staff," Peterson said. "But regardless of the governor's impact on us, we still have a loss of $1.6 million."

The $1.6 million "is strictly a reflection of our local downturn in economy," Ranii added. "What the government is proposing is beyond what we need to provide a decent education."

Boitz and the rest of the association had worked hard in prior weeks to provide board members with options other than laying off teachers. The association had come up with four alternate measures: implementing early retirement incentives; shifting extracurricular activity funding; borrowing money from the district's special reserve; and reviewing the district's actual administrative needs.

Boitz showed the board a list of numbers that indicated it would save money for teachers to retire, even with financial benefits, rather than laying off an equal amount of new teachers.

According to Boitz, there are several teachers in the schools who are considering retiring but have not yet made a formal decision. "In a polite sort of way, we would like the district to buy them out," Boitz said.

On the topic of extracurricular programs, Boitz pointed out that prior to 1998, the district's general fund only paid for 50 percent of coaches' stipends and program costs, while the Associated Student Body covered the rest; only in recent years did the district take on the entire amount. The teacher's association proposes to revert to the 50-50 funding, countering the district's proposal to pay for 66 percent and giving 33 percent of the fiscal responsibility back to the Associated Student Body, through parent funding or otherwise.

Boitz, Saratoga High's instrumental music director, said, "Never would I say what happens on the field, what happens in the band room, is not important. But what happens in a classroom, from first period through seventh period, is really the priority."

The district also proposes to take a loan from its special reserves, which is required by the county to be at least 3 percent of the school's total budget. A counter proposal from the association is to more than double the district's proposed amount, to $500,000, which would be repaid with a parcel tax.

Boitz also asked the board to consider a review of the district's actual administrative needs. Boitz presented data that indicated that the district has a higher administrator-to-teacher ratio on its campuses than other, similar high school districts in the Bay Area.

Teachers are concerned that funding for the district's administrative needs could prevent students from receiving a quality education, Boitz said.

Ranii replied, however, that the proposed budget cuts include the elimination of 1.88 full-time administrative positions in the district office, the laying off of one assistant principal at Los Gatos High School and the reduction of one administrator position at Saratoga High by 0.4 percent.

Because the budget study session, as it was called, was an information item, board members did not take any action.

Second on the agenda was a discussion on the upcoming teacher layoffs. By March 15, the district will have to take the first formal steps in layoffs by sending employees letters of their potential unemployment. Employees who do not receive a notice cannot be subsequently terminated.

An "over-notification" will occur, Ranii said, because not all those employees will lose their jobs, either due to financial feasibility or successful appeals.

Although Ranii said she knows receiving a notice will cause hurt in any event, she added, "I feel relatively certain that we will be notifying teachers that won't be laid off." The letters, which vary according to the type and term of the teacher, will say something like, " 'Your services may not be needed next fall' or, in some cases, 'Your services will not be needed next fall,' " Ranii said.

If the $7.1 million budget cut is approved, the district will most likely dip into reserves, as well as take advantage of certain positions that can be terminated midyear, to cut its workforce by 25 percent. "This community would not want to go through this," Ranii said.

Ranii added that there will be "more students, less resources" in the high schools. Although the district is generally rejecting requests for transfers into the district, it is "looking at a student population growth of about 1 percent," Ranii said.

Los Gatos High performing arts chairwoman Diana Pleasant said, however, "Enrollment will decline as we offer fewer services."

Last, there was talk of an annual $250 parcel tax, potentially placed on November's ballot. Peterson said the district conducted a telephone survey, which indicated that there is insufficient support for a $250 parcel tax election in June. As a result, the district will focus on a November campaign, which will cost $200,000. Ballot costs can be paid by the district, but the rest of the funds must be raised independently and without the efforts of district personnel.

According to board member Lorrie Wernick, several districts have both a parcel tax and a bond measure, including Los Gatos Union, Lakeside and Loma Prieta; the high school district currently has a bond measure.

Although the district has not yet released the names of teachers who will receive layoff notices, Erin Schwartz, who is in her first year of teaching social studies at Los Gatos, says she received "verbal confirmation" that she would be getting a letter.

"It's something that I expected, being the low man on the totem pole," Schwartz said. "But it's kind of depressing, after being told for the last five years that we need teachers."

Schwartz says, however, that she is appreciative of her colleagues. "Teachers are willing to help other teachers out," Schwartz said, by offering to not receive bonuses or raises to save others' jobs. And, Schwartz says, the teachers "have faith" in the administrators. "I just have to assume that the administration is doing the best they know how," Schwartz said.