CUSD Hired a Lobbiest Capitol Advisors - The Presentation is eye opening! A must listen! 

The anticipated Supreme Court ruling on the Janus case may stop contributions to the the teachers union... but there is a new union of all unions that has already stepped in- taxpayers beware! No wonder our Public Schools are so broke!

The California Department of Education has a foundation The CDE Foundation which developed the California Labor Management Initiative- all taking education dollars out of school district  general funds to promote political agendas in Sacramento.


Board Agenda No supporting documentation

Board Audio at 2:13:26 

Capital Advisors Presentation to the CUSD Board April 25, 2018

Topics That Were Presented

Board Audio at 2:14:50 - Local Control Funding Formula

Board Audio at 2:17:10  - AB2808 Increasing Base Grant Targets 

Board Audio at 2:21:14 - CTE (Career Technical Education)

Board Audio at 2:24:34 - Charter Schools

Trustee Questions

Board Audio at 2:24:34 - Trustee Gila Jones re: CTE

Board Audio at 2:26:58 - Trustee Gila Jones re: SB-837 Transitional kindergarten: enrollment for 4-year-olds

Board Audio at 2:27:36 - Trustee Gila Jones re: Unfunded Mandates

Board Audio at 2:31:16 -  Trustee Amy Hanacek CalSTRS and CalPERS 

Board Audio at 2:35:46 -  Trustee Gary Pritchard School Facilities Bonds

Board Audio at 2:37:20 - Trustee Gary Pritchard K-12 and Community College Partnerships - Can Charter Schools have Dual Enrollment?

Board Audio at 2:39:05 - Trustee Patrica Holloway Why is the Bond money being released so slowly?

Board Audio at 2:42:13 Trustee Amy Hanacek Question re: 2/3 vote required to pass school facilities bond.

Board Audio at 2:44:25 Trustee Gila Jones - School Facility Bond Money being dispersed on low income as a priority.


CUSD's payment of $36,500 to Sacramento Lobby Firm Capitol Advisors violates California Education Code Section 7054

CUSD paid Capital Advisors Group LLC $36,500 to represent CUSDs' interest in Sacramento. This is one of hundreds of Consultants and organizations that CUSD pays using taxpayer funds that should be going to the classroom.

As this Board Item will show- CUSD is using District funds to pay Capital Advisors to "advocate" for specific ballot measures ie past examples: the passage of Prop 30, Prop 51 and Prop 55. And currently -it is clear from the presentation that Capital Advisors is promoting only the election of Democratic gubernatorial candidates. 

The reality is that CUSD is using district funds to promote the agenda of the Democrat party and the Teachers Union.

California Education Code 7054

(a) No school district or community college district funds, services, supplies, or equipment shall be used for the purpose of urging the support or defeat of any ballot measure or candidate, including, but not limited to, any candidate for election to the governing board of the district.

(b) Nothing in this section shall prohibit the use of any of the public resources described in subdivision (a) to provide information to the public about the possible effects of any bond issue or other ballot measure if both of the following conditions are met:

(1) The informational activities are otherwise authorized by the Constitution or laws of this state.

(2) The information provided constitutes a fair and impartial presentation of relevant facts to aid the electorate in reaching an informed judgment regarding the bond issue or ballot measure.

(c) A violation of this section shall be a misdemeanor or felony punishable by imprisonment in a county jail not exceeding one year or by a fine not exceeding one thousand dollars ($1,000), or by both, or imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for 16 months, or two or three years.

The California Department of Education has a foundation The CDE Foundation which developed the California Labor Management Initiative- all taking education dollars out of school district  general funds to promote political agendas in Sacramento.

This must be stopped.  



Cal-Access Lobbying Activity Capital Advisors Group LLC






Board Audio at 2:14:50

Local Control Funding Formula

LCFF is problematic for all districts, but especially for districts that have a low percentage of students who are English Language Learners, Receiving Free and Reduced Lunch and/or are in Foster Care.


Board Audio at 2:17:10 

AB2808 (Muratsuchi) to Increase Local Control Funding for California Schools 

AB2808 would increase the target Base Grant by about $5,000 per student

Is this likely to happen? Probably Not- So Capital Advisors is working with the State Legislature to try and transfer $1 billion of one-time money into on-going permanent money. 

Since this is just a target- there is no guarantee that even if AB2808 passes that the actual amount given will be anything close to the $5,000 per student that is in the bill.

CUSDWatch Comment: As you listen to Kevin Gordon speak, please keep in mind that he has not been elected to any position- why is he dictating State Education Spending Policy?

CALL TO ACTION: End the 2/3 majority in the California Legislature


Board Audio at 2:21:14

CTE Career Technical Education

The Governor has always funded CTE with one-time grant money. This year is is proposing to spend $200 million in permanent on-going funding for CTE.

When the Governor developed LCFF he eliminated all but a few categorical programs. He then put all of the funds into a single pot for the 9-12 grade span and allowed local districts to decide how to spend the money.

Capital Advisors is a strong advocate for Career Tech Ed (of course they are... pay-to-play big ed tech companies are profiting not only from selling products to school districts, they are data mining the students through re-search partnerships).

Capital Advisors supports running the CTE funding through the K-12 system rather than the Community Colleges. 

Two things are happening: 

(1) Patrick O'Donnell - Democrat 70th Assembly District - Los Angeles Harbor Region

Assembly Bill 1743 would increase funding for vocational/Career Technical Education (CTE) programs in K-12 schools from $200 million to $500 million each year, on an ongoing basis. Kevin Gordon stated the number was $600 million.

Asking Assembly Member Brough to co-sponsor the bill.


(2) The money will not go to Community Colleges at all- it will flow through K-12


Board Audio at 2:24:34 Charter Schools

The Big Stuff that happened was that nothing happened- no Charter School bills from either side passed. You have a Governor that supports Charter Schools and a Legislature that absolutely does not. The fate of Charter Schools in California rests on the election of the next Governor.

If Gavin Newsom (Democrat) is elected - Bad for Charter Schools because he is ant-Charter Schools.

If Antonio Villiaraigosa (Democrat) is elected - Good for Charter Schools because he supports Charter Schools. The Charter School Association just gave Villiaraigosa $7 million dollars.

CUSDWatch Comment: What about Republican Travis Allan and Jon Cox who are ahead of Villiaraigosa in the polls? No mention of the effect of a republican win and that effect on Charter Schools.

Bill By Charter School Association which supports charter schools

Bill By CTA which is absolutely against charter schools.


Two other charter school bills seeking to ensure transparency, accountability and equity in charter schools will continue to make their way through the legislative process next year.

CTA co-sponsored AB 1478 by Assembly Member Reggie Jones-Sawyer ensures transparency by requiring entities managing charter schools are subject to the Brown Act (open meetings), Public Records Act (open books), and two laws preventing conflicts of interest: Political Reform Act and Government Code 1090.

CTA co-sponsored SB 808 by Senator Tony Mendoza requires that all charter school petitions must be approved by the school board of the school district in which they reside.



Board Audio at 2:24:34 Trustee Gila Jones re: CTE 

Two Competing Bills

AB-445 Career technical education: the California Career Technical Education Grant Program.(2017-2018) 

Fact Sheet

Governors Bill 

This bill would replace the expiring K-12 CTE Incentive Grant program with a permanent $300 million CTE program. In addition, this bill would Increase the existing Related & Supplemental Instruction (RSI) block grant by $10 million in the current year and $10 million in the budget year to offset the cost providing Related and Supplemental Instruction for all student attendance hours at community colleges and local education agencies (LEA). This will allow apprenticeship programs to send apprentices to high-schools and community colleges for classroom-based learning

This bipartisan effort will permanently extend funding for the CTEIG at $300 million, preserve the one-to-one state-to-local match ratio and maintain the quality and accountability criteria needed to ensure relevant instruction that is in demand.

AB-1743 California Career Technical Education Incentive Grant Program.(2017-2018)

Fact Sheet 

AB 1743 would allow students to gain college and career readiness skills through access to high quality career technical education (CTE) by extending funding for the Career Technical Education Incentive Grant (CTEIG) Program. This bill would provide ongoing funding of $500 million per year with a 1:1 local match as well as $12 million per year for regional CTE coordinators to provide technical assistance and support to local CTE providers.


Board Audio at 2:26:58 Trustee Gila Jones re: SB-837 Transitional kindergarten: enrollment for 4-year-olds

SB-837will not pass- it is to expensive.

Fact Sheet LAO

State Subsidizes Child Care and Preschool for an Estimated 435,000 Children Through Several Programs

A part-day program must operate at least 3 hours per day for 175 days of the year. In 2017-18, part-day providers received $4,956 per child. „

A full-day program must operate at least 6.5 hours per day for 250 days of the year. In 2017-18, full-day providers received $11,433 per child.

CUSDWatch Comment: Why is the State paying School Districts $11,433 per student for a TK student and less than $9,000 for all other grades K-12?


Board Audio at 2:27:36 Trustee Gila Jones re: Unfunded Mandates

Mandate Block Grant - School Districts use to receive 100% reimbursement for any new mandates by the State. The State failed to actually pay Districts for these mandates so the amounts owed to districts grew to be very large. When the recession hit, Governor Brown offered school districts instant money if they signed an agreement to accept pennies on the dollar of what the State owed. Every District signed up because this represented something rather than nothing.

The current question is will the state increase the block grant with every new mandate?

The way the state is paying off past due reimbursements for mandates is through one time money (grants for offering programs) except every District gets the same money wether or not they actually offer the program.

There may be litigation on the issue of unfunded mandates.  

Nothing will change under this Governor, but it may under a new Governor. The Political Reality is that we probably won't be refunded for old mandates, but under a new governor we may get the State to increase the Mandate Block Grant with each new mandate.

One Example: Campus Security - Bill to mandate that every campus must have an armed security guard. It passed the Education Committee. It will die in the Finance Committee because it is to expensive. 


Board Audio at 2:31:16 Trustee Amy Hanacek CalSTRS and CalPERS

Three approaches to deal with Districts increased CalSTRS and CalPERS contributions.

Rainy Day Fund - It is projected that the State will reach the 10% Rainy Day Fund threshold this year. If the threshold  is met, then 1/2 of the money will be able to be spent on other things. Capital Advisors is advocating for spending that money on CalSTRS and CalPERS contributions outside the Prop 98 guarantee which is suppose to be used for the classroom. Both of the bills to increase Base Grant funding targets would mean that money that is suppose to go to the classroom would be eaten up by CUSDs' CalSTRS and CalPERS contributions. It would not add any additional revenue to the classroom. 

Other Idea is Bond Debt Service- Bond Debt is an allowable payment from the Rainy day fund.

Currently State General Fund Revenue is running $3 billion dollars higher then expected. Plus the Rainy day fund is $3 billion dollars higher than planned. That is $6 billion dollars that could be used to pay down CalSTRS and CalPERS.

The message that the District needs to send to the Public:

The Public thinks that employees are getting gold plated pensions- they are not. The average pension in CalPERS of a school employee is $1,500 per month. Average pension in CalSTRS of a school employee is $4,000 per month and they do not get social security.

The issue is the solvency of the system.


Board Audio at 2:35:46 Trustee Gary Pritchard School Facilities Bonds

The Governor does not support school facility bonds and will not release funding for school facilities. There is some money left for projects already in line. But there is no new money under this Governor.

All four viable candidates for Governor (Republican and Democrat) support State and Local School Facilities Bonds. In addition they are looking for a new significant bond in 2020.

The reason Prop 51 State School Facility bond was so small in 2016 (only $9 billion) was because everyone knew that if it was higher, the Governor would oppose it. 

Every Poll - everyone supports a school facility bonds.

CUSD should consider bringing a bond forward again.


Board Audio at 2:37:20 Trustee Gary Pritchard K-12 and Community College Partnerships - Can Charter Schools have Dual Enrollment?

Technically Charter Schools are Public schools so yes.

There is one interesting dynamic. The faculty at Community College and the faculty in the Certificated Unions are arguing about what teacher gets to teach at what campus. 

Assemblymember Holden who wrote the bill is looking at this and trying to tweak it to address some of these issues.

CTE money goes to a public agency and passes through to a Charter. Can CUSD allow CTE grant money to pass to Charter Schools?


Board Audio at 2:39:05 Trustee Patrica Holloway Why is the Bond money being released so slowly?

When Governor Brown retires - he is concerned with how much Bond Debt happened on his watch. 

Ironic - if you ask most people do you want to go into debt for a Bullet Train- the Delta Tunnels or School Facilities- the People would say School facilities. But the Governor's priority is the Delta Tunnels and the Bullet Train- $100 billion in debt for those projects. But he will not authorize an additional $9 billion for school facilities.

That will change when a new Governor is elected. 

Question on how to prioritize the facilities money- money for the low income districts rather then who has projects ready to go.


Board Audio at 2:42:13 Trustee Amy Hanacek Question re: 2/3 vote required to pass school facilities bond.

Ballot Initiative: The Tax Fairness, Transparency and Accountability Act of 2018 would require that all local taxes be approved by a two-thirds vote of the local voter. 

School Bonds will be exempt from the 2/3 vote under this initiative.

"Jack and I - referring to Former State Superintendent Jack O'Connell" who is a Parter at Capital Advisors. 

CUSDWatch Comment: Right now Prop 39 Bonds (School Facility Bonds) can be passed by a simple majority.

Capitol Advisors supports California Senator Ben Allen's proposition CSA 22 which would allow Parcel Taxes to be passed with a simple majority rather than 2/3 vote. 

These are competing initiatives. But Both will probably exempt school bonds. 


Board Audio at 2:44:25 Trustee Gila Jones - School Facility Bond Money being dispersed on low income as a priority.

Governor Brown will be gone so that is not likely under a new Governor.


Information from CUSDWatch re: the above Topics


CUSDWatch: Explanation of California's new Funding Law "LCFF"

California's new education funding law: AB- 97 School Finance - Local Control Funding Formula aka "LCFF" distributes K- 12 per pupil funding using the following formula:

The "Base Grant" is universal for all students. 

The "Supplemental Grant" provides additional funding to districts based on the percentage of students in the district that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care. 

The "Concentration Grant" provides even more funding for districts that have large concentrations of students that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care.

Districts with a low percentage of students who are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care, are funded primarily by the Base Grant. 

The Capistrano Unified School District is funded primarily by the Base Grant with a very small portion of Supplemental Grant money.

When the State of California enacted the LCFF law it set the Base Grant at $6,500 per pupil even though the Legislature was well aware of a December 2006 study commissioned by the State of California that concluded that in 2007-08 no child could be educated for less than $9,000 per student.

Efficiency and Adequacy California School Finance: A Professional Judgement Approach at page xiii

The LCFF is designed to intentionally underfund "wealthy suburban school Districts". It was designed to promote a political agenda of wealth redistribution, not to provide a basic education for EVERY CHILD. 

See Invidious Discrimination". 


The Governor reached his Goal of funding all schools to 2007-08 levels of funding + inflation by 2021 this year. Having the goal to be reaching 2007-08 levels of per pupil funding puts California at 46th in the nation in per pupil funding and is clearly insufficient to meet the basic educational needs of students.

The State has intentionally withheld $5,000 per student X 50,000 students = $250 million per year since 2012 (6 years) = $1.5 BILLION (with a "B") from the Capistrano Unified School District alone.

That is how the State of California has amassed its $77 Billion Dollar Surplus.

Taxpayers must understand...

The State of California has money - they are choosing not to spend it on what they perceive to be "Wealthy" suburban schools districts. They presume that all people; irrespective of their individual wealth, race and ethnicity, that live in a wealthy school district have sufficient income to fund the difference in what we receive and what is actually needed.


CUSDWatch: How much more can taxpayers afford to pay for Education?


CUSD relies on fundraising and donations to pay for art- music - science - instructional materials and supplies- playground equipment - class size reduction - instructional aids - teacher salaries - teacher release time - computers and technology.

Relying on Fundraising and Donations (one-time money) to pay for core educational programs (on-going expenses) creates wealth based inequities within CUSD that are un-constitutional. Every child is entitled to an equal opportunity to reach their academic potential. We have many students in CUSD that do not receive art- music and science because their parents cannot afford to fundraise for it.
Total Fundraising and Donations Capistrano Unified 2017-18 $3.5 million
7-26-17 8-23-17 9-13-17 10-11-17 11-08-17
$57,817.12 None $241,576.56 $617,420.08 $536,629.67
12-06-17 1-24-18 2-28-18 3-14-18 4-25-18
$340,628.35 $524,021.10 $282,224.84   $83,891.95 $532,086.38 
5-23-18 6-20-18

   $3.5 million/50,000 students  $70/student   

Annual Tax On A Family of Four

$140 per year 

upcoming Est $300,00.00

Fundraising for core educational programs from Dawn Urbanek 


Parking Fees: CUSD raises over $500,000 per year by charging students to park on campus

ASB Fees 

Increased Taxes

Prop 30 We now know that 80% of Prop 30 went to salaries pensions and benefits 

Prop 55 Extension of Prop 30 Taxes on incomes over $250,000.00

Prop 51 School Facilities Bonds $9 billion in debt - no money ha been released for K-12 schools.

Local School Bond Measures - CUSD Measure $889 million dollar Measure M.

The State of California In Collusion With Public Employee Unions Crated A Common Message "Road to Recovery"

The plan was to protect public employee compensation during the great recession, and restore compensation to maximum highs by 2015.

The student road to recover is not guaranteed, and is dependent on finding continual new revenue streams by 2021:


School Facility Bonds

CUSD's Measure M Failed $889 million dollars representing $600 per year for 35 years on a million dollar home.

During the November 2016 Elections 187 of 206 school bond measures passed representing almost $50 billion (with a B) in new debt for California Property owners. 

Mello Roos Tax

Property Tax 

Gas Tax

The average California family will be forced to pay $700 or more a year if the new gas tax is not repealed.

Sales Tax 

Local Taxes


Federal Taxes 



CUSDWatch: The Burden of Unfunded Pension Liabilities are being passed down to local school districts. Public employee salaries, pensions and benefits will be over 100% of CUSDs' Budget by 2021 

89% of CUSDs' budget goes to employee salaries, pensions and benefits.

The State legislature in collaboration with public employee unions made the decision to increase the contributions to CalSTRS and CalPERS to keep them solvent. Most of the increased cost is being passed down to local school districts (not the State or the union member). The increase cost to CUSD will represent almost 12% of CUSD's budget. This means ... 89% + 12% (over $100%) of CUSDs' budget will be going to employee compensation. As such, the State legislature will see that sufficient money will be used to increase the Base Funding Grant for all schools so that they can afford to pay for the increased CalSTRS and CalPERS expense.

Nothing will go to the classroom.

This is the State/Union Plan which they named Californias' Road to Recovery - it never intended to restore programs, decrease class sizes or fix and maintain facilities. It only intended to restore public employee compensation and backfill unfunded pension liabilities.

California's Road to Recovery after the Great Recession