Budget Savings at School Questioned

While admitting that Los Angeles schools could learn new, effective ways to save money from the San Fernando Valley’s first charter campus, a financial review of the Vaughn Next Century Learning Center’s budget concludes that the elementary school received special treatment that cannot be extended to other campuses.

In a three-page review sent to Los Angeles Board of Education members Thursday, district officials found that Vaughn succeeded in saving a total of $1 million, in part by decreasing students’ and teachers’ absenteeism and by hiring less-experienced--and less-expensive--teachers.

But the report also disclosed that most of the savings--about $700,000--came from the district giving Vaughn financial breaks on costly items.

Vaughn, for example, was given more money for teachers salaries and benefits than other schools and was charged less for Los Angeles Unified School District support services, the report showed. The district would be unable to give those same breaks to other campuses, officials said.

In addition, the review found that the school, led by director Yvonne Chan, had miscalculated its surplus by about $200,000.

The district financial study was prompted by Chan’s public assertions that she had saved $1.2 million this year by operating the school more efficiently. In response, the district sent two members of the accounting division to review the school’s finances for four days.

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Chan, who met with the accounting officials Thursday afternoon, said she disagrees that her surplus has dropped to $1 million and that future meetings are being set up to discuss the school’s budget. In addition, she said the school’s successes could be easily duplicated across the system.

“I don’t think we’re any smarter than anyone else,” Chan said. “I don’t think we have any better conditions than anyone else. If we can do it, why can’t everyone?”

The district report did praise Chan and her staff for being innovative and for implementing many of the reforms other schools are now attempting.

“Dr. Chan, her staff and parents are to be commended for their vigorous efforts in effecting school flexibility and reform,” the report said, “even though a substantial portion of the savings resulted from District efforts which treated Vaughn more generously than other District schools.”

Bill Rivera, the school district’s spokesman, said the district adopted spending practices that were unique to Vaughn to encourage the new charter school. He said the district could not afford to extend the same favorable budget formulas to other campuses.

“She’s doing a hell of a job,” Rivera said. “A lot of schools are going to be looking at this. But a lot of what she has done has been with one-time funds.”

The district gave Vaughn higher funding for teachers salaries and benefits even though the campus had teachers at the lower end of the salary scale, the report said. The school also received more year-round incentive money than other campuses, the review found.

Rivera said other schools could copy Vaughn’s staff and attendance efforts. The report found that the school reduced its use of substitute teachers and effectively used parent volunteers. The campus also quickly followed up on student absences--boosting attendance to 99.14%--by requiring valid excuses. Only excused absences are paid; schools lose money for unexcused student absences.

“The findings clearly lend support to the long-held premise in education that an outstanding administrator providing superb leadership, with strong supportive parents and staff, will make a difference in the quality of the instructional program,” the report said.

Chan said she has taken advantage of parents who have offered to help supervise students and to work at the school.

She also said she is not through fighting the behemoth district. She said she wants the district to further reduce the amount it is taking from the budget for support services, such as money for the lawyers’ and deputy superintendents’ offices. “They’ve disowned us but we’re still paying for their services,” she said.

Because the charter school program is new to the school district, officials still are trying to determine the best ways to fund the campuses. Budget administrators are examining the funding patterns for all schools.

The state Charter Schools Act, passed two years ago, gave campuses authority to break away from district and state rules and regulations. Using its budget flexibility, Vaughn successfully argued last year for more per-pupil funds and has waged public battles over the district’s spending practices.

Board president Leticia Quezada praised Chan and said she might be the key to the school’s success.

“Vaughn has been helped in terms of policy decisions but it has a lot to do with Yvonne Chan being a charismatic leader,” Quezada said. “The question is, in the absence of a charismatic leader, does the design work in and of itself to save money.”

Some board members said the system was unfair to other campuses.

“I think we were overly fair to Vaughn,” said board member Mark Slavkin, who voted in the fall against giving Vaughn more per-pupil funds. “I think we did some things for Vaughn that we’re not going to be able to do (for) other schools and it’s not fair to set that up.

“They were hustling for their kids and that’s to their credit,” he said.

Times staff writer Sandy Banks contributed to this story.