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Board weighs distribution of MiCSIG settlement funds to 29 classified employees; directs negotiation with CSEA

2101540 · January 9, 2025
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Summary

Trustees approved a memorandum of understanding related to distribution of MiCSIG settlement funds but instructed the superintendent to negotiate with the California School Employees Association (CSEA) over how to make affected employees whole after a 2015 distribution decision left 29 classified employees without a $1,900 payment.

The board approved a memorandum of understanding related to the distribution of MiCSIG settlement funds, while trustees and staff agreed to negotiate further with the California School Employees Association (CSEA) about how to address 29 classified employees who did not receive a roughly $1,900 payment after the original 2015 disposition.

During discussion trustees asked why the 29 employees had not received the $1,900 each at the time and whether the district should provide additional compensation such as a cost-of-living adjustment (COLA) or interest for the 10 intervening years. District counsel and staff explained that the bargaining unit had previously elected to fund health reimbursement accounts (HRAs) with the settlement funds and that over subsequent months or years those HRA balances were drawn down; the handling of remaining balances over time had not been audited or brought to the board’s attention earlier.

Trustees asked staff to make a reasonable effort to find the affected former employees or their heirs and to negotiate with CSEA on an equitable remedy. Superintendent Jim Koenig said the district would sit down with the bargaining unit to discuss options, including potential linkage to interest earned on district deposits or another mutually agreeable resolution.

Why it matters: The matter concerns back pay or settlement distribution to former or current classified employees and raises questions about record-keeping and the district’s historical administration of settlement funds.

What happened at the meeting: Trustees passed the MOU item by roll-call vote (4-0). During the discussion the board directed staff to negotiate with CSEA on an appropriate remedy for the 29 employees who did not receive the $1,900 in 2015 and to make efforts to locate recipients or heirs in cases of deceased employees.

Next steps: District staff will meet with CSEA to develop a proposal; staff said they will attempt to locate former employees and will work toward a mutually agreeable settlement.

Speakers cited: Superintendent Jim Koenig; CSEA representative (unnamed in transcript); trustees and board members who raised questions about locating recipients and potential remedies.