An email sent to the Board by Eric King was read into the record. It can be found below:

Good afternoon.

As of February 10th, the United States’ rate of inflation has grown 7.5% in the last 12 months (NPR).

Due to the ever increasing rate of inflation, staff members at Scholarship Prep are being priced out of the housing necessary to continue teaching. The percent of people who left California for other states increased 12% from 2020 to 2021, but this has not decreased the need for teachers in classrooms, evidenced by the new campus opening next school year and the potential for new campuses in Riverside and Los Angeles.

The current cost-of-living wage increase at Scholarship Prep is only 2.3%. Next year, the entire staff will be taking a significant pay cut due to the current rate of inflation, which forces many of us to evaluate whether we can continue to live and work at Scholarship Prep.

We are being priced out at every unified school district in Orange County. To reference, a new teacher at Scholarship Prep Santa Ana makes $55,276. With the same credentials, the same new teacher can work across the street at Santa Ana USD for $60,308, a $5,000 difference.

We are even being outbid by ourselves. Recently, the substitute teacher pay rate at Scholarship Prep has increased to $35 an hour, which is more than I, a teacher on the fifth year of the level 1 payscale, earn. To put into perspective, a new and credentialed teacher at Scholarship Prep can expect to make about $7,000 less than a Scholarship Prep substitute teacher that works full time. I can provide the math for you if you'd like.

When teachers leave, it hurts financially and emotionally. A teacher leaving a school costs urban schools an average of $20,000 for each new hire (NPR). Turnover lowers morale, which can lead to more staff exiting. Turnover also causes a loss of trust from families.

I would like to propose a 10% increase in pay for all staff to compete with inflation. This pay increase will allow the staff to not need to make those hard choices. We want to continue to provide an amazing education to our students. By supporting a 10% increase, you support retaining excellent staff while providing a powerful incentive for new staff.

When I first brought the inflation-based pay increase to home office’s attention on January 27th, I was told to delay bringing it up during board meetings and go through the proper protocols instead. This was in direct contrast to a January 14th email, where Mr. Watts stated that the board makes all decisions regarding finances. I was also told that there was to be a follow up meeting with me discussing future steps.

The follow up meeting never happened. On February 3rd, I contacted Mrs. Allotey in regards to the future steps that we had discussed the previous week. She told me that she had no future steps for me, and that Mr. Watts would reach out to me. He never did, so I emailed him on February 15th regarding a meeting. He agreed to a follow up meeting but never scheduled one.

As the board makes all financial decisions, I am imploring you to raise all staff member wages by 10%. I love the culture that Scholarship Prep brings to our communities. I am so committed to the mission that I’ve convinced my wife to work here as the resident BCBA. I love working at Scholarship Prep, but I literally cannot afford to work here without at least a proper inflation-based increase.

Interim Principal Ms. Leahey presented a video update to the Board after some technical difficulties. 

Principal Dennise Allotey presented a video update to the Board.

Principal Allison Vann presented an oral update to the Board. She shared information with the Board which included information on campus programs, upcoming events in April, and news about promotions at the end of the year.

Executive Director Jason Watts shared an update with the Board. This included a review of the past LAUSD Oversight Visit which was successful. He gave praise to the entire team that worked on gathering documentation for this undertaking. He also shared some photos of the progress of the construction at the new Grand Ave campus in Santa Ana. He thanked Marisa Quintanar and Jacklyn Moreno who have been overseeing and supporting the project. Mr. Watts then shared some photos of progress on the new building in South Bay which isn't quite as far along as Grand Ave. 

Mr. Watts then transitioned into some new compensation incentives being presented to the Board. This included an increase to the wellness supplement, a loyalty bonus to employees who remain at scholarship prep for 5 years, and changes to the teacher and administrator compensation schedules. 

Board President Charles Friedrichs asked what the percentage increase was to first year teacher salaries. Deputy Director Andrew Crowe shared it was a 9.6% increase, making Scholarship Prep very competitive in surrounding districts. 

There were several questions typed into the chat during this time. It was agreed by the Board that staff would field and respond to the questions via email so as to not disrupt the meeting. 

Chief Development Officer Marisa Quintanar shared this item was connected to a previous Board Meeting item which included sprinkler renovations. 

Board Treasurer John Ing took assumed chair role for the remainder of the meeting.

A document was shared with the Board in connection with Action Item B which was not originally in the packet beforehand. It contained a competitive purchase bid request for the item.