Oversight committee and auditor report QTEA spending is accounted for; board urged to review parcel-tax split ahead of Prop G vote

Superintendent Vincent Matthews and the QTEA oversight committee told the San Francisco Unified School District board that the district’s parcel-tax program is being monitored and spent according to ballot language, but that the board should consider revisiting how the revenue is split before seeking additional voter authorization.

Nathan Edelman of VTD, the external financial auditor, presented the committee’s annual financial statements and compliance review and said the accounting records "fully account for" QTEA revenues and expenditures. Edelman reported roughly $40,000,000 in revenue and about $42,500,000 in expenditures for the fiscal year presented, a planned deficit of about $2,300,000 drawn from prior reserves, and an ending fund balance near $7,800,000. "From an audit perspective, we can pick samples for every single dollar and validate that the funds were spent appropriately," he said.

Tejal Shah, co-chair of the QTEA Oversight Committee, walked the board through how parcel-tax revenue is allocated under the 2008 measure: approximately 71 percent supports salary-related items governed by the district’s MOU with United Educators of San Francisco (UESF), while 29 percent supports other priorities including technology, professional development and Innovation and Impact awards. Shah and committee members said the committee remains satisfied with the district’s accounting but recommended a closer look at the 71/29 proportions and at whether other funding sources — for example bonds or grants — could be used for capital and technology needs so QTEA funds can be directed more fully toward educator compensation and school priorities.

Committee members flagged two persistent issues: carryover funds from underspending (which committee members say have been declining as spending has accelerated) and significant underspending within the technology line, largely because some positions are hard to fill. "We are happy to report that the spending has quickened," Shah said, but added the committee would like the board to examine whether Impact and Innovation awards and professional development should be reallocated within the parcel-tax structure.

Board members pressed staff on specific allocations and outcomes. Budget manager Jennifer Shuster described stipends funded in part by QTEA: $1,000 prorated for teachers in hard-to-fill subjects (special education and bilingual education) and up to $2,000 per semester for teachers in designated "high potential" schools. Chief Human Resources Officer Daniel Manesas said the district does not have the experimental data to show a statistically significant retention effect from those stipends, though he said district leaders believe the stipends have helped.

Public commenters and union representatives urged formal seats for UESF in oversight discussions around any new parcel-tax measure. Commissioner comments also emphasized that, with the district planning to place Proposition G — a proposed $298 per-parcel tax estimated to raise roughly $50 million annually — on the June ballot, now is the appropriate time to debate proportions and oversight structure so voters clearly understand how revenue would be used.

What’s next: the audit and oversight recommendations were presented to the board for consideration; commissioners asked staff to surface options for revisiting the allocation split and for deeper audits where appropriate. The board did not take a new formal vote on QTEA policy tonight but signaled interest in continued review and budget-committee follow-up.