Union City Schools Flush With Funds But Starving Classrooms: Where’s the Money Going?

Union City schools are once again under scrutiny as teachers and staff sound the alarm over what they describe as a glaring disconnect between the district’s massive revenues and the barebones resources inside classrooms.

According to the district’s own Annual Comprehensive Financial Report (2022), Union City Public Schools took in $340,578,515 in governmental revenues that year, with $319,456,722 coming from state and federal aid and grants. Local taxes contributed an additional $15.4 million, while unrestricted state aid totaled about $3.6 million.

This is in addition to federal COVID relief packages, including the American Rescue Plan (ARP) Elementary and Secondary School Emergency Relief (ESSER III) fund, which poured billions nationwide into schools to stabilize classrooms after the pandemic. Union City confirmed it received its share of these federal funds.

Yet inside the schools, teachers report a different reality: no copy paper, no working printers, no pencils, no garbage bags, and even no bottled water for staff. Educators say they are being forced to buy classroom and cleaning supplies out of pocket, while parents are asked to help cover costs for items as basic as garbage bags.

“Where is the money really going?” has become the central question.

Allegations of Patronage, Campaign Pressure, and Political Hiring

Multiple teachers and employees allege the real answer lies not in the classrooms, but in the salaries and positions of political insiders tied to State Senator and Union City Mayor Brian Stack.

The name most frequently raised is Justin Mercado, a close Stack ally who currently serves as Board Secretary and Director of Facilities, and was recently appointed Assistant Business Administrator as well. Public records confirm that in 2019, Mercado’s salary was $135,476, and before his appointment as Board Secretary, he was already earning about $132,900 in his facilities role. His most recent promotion reportedly adds yet another salary bump on top of his existing six-figure pay.

Mercado is also the official custodian of records for the district — meaning he personally oversees Open Public Records Act (OPRA) requests. That arrangement has fueled concerns of conflict of interest, as employees report that OPRA requests seeking salary information for Stack’s political allies are routinely ignored or left unanswered.

Even more troubling, multiple district employees allege that Mercado actively pressures teachers, administrators, and staff to contribute to Brian Stack’s political campaigns. Teachers say they are not only expected to dig into their own pockets for classroom supplies, but are also expected to buy fundraiser tickets or donate money to Stack’s campaigns. According to these accounts, refusing to contribute or failing to show loyalty can lead to serious retaliation, including the risk of losing one’s position or having career opportunities blocked within the district.

But Mercado is far from the only politically connected figure benefiting from six-figure salaries.

Mercedes Joaquin, Stack’s longtime girlfriend, is alleged to live a frivolous lifestyle funded by her Board of Education salary. Despite holding no qualifications for such a position, she reportedly makes well over six figures — another example of blatant political hiring while teachers and classrooms go without.

Alex Velasquez, a Board of Education trustee, simultaneously works in City Hall as an aide to Mayor Stack — raising serious conflict of interest concerns about dual loyalties between the district and the mayor’s office.

Ydalia Genao, the current Board of Education President, also works directly for Stack in City Hall as his secretary. On top of that, her husband holds a city director position in Shop and Maintenance, further showing how taxpayer-funded jobs are concentrated within a tight political inner circle.

Kennedy NG, a Union City Board of Education trustee and former director of Community Development Affairs at City Hall, is linked to past federal scrutiny. In November 2012, FBI agents raided Union City’s City Hall, seizing computers, files, and records connected to the Community Development Agency, of which NG was listed as director at the time.  Though NG declined to comment in media reports, the raid raised serious questions about misuse of public resources and the intertwining of political, municipal, and educational appointment networks in the city. He is now also the Administrator for Rent Control in City Hall. Sources claim he should have been indicted for federal crimes when the FBI raid took place.

Other six-figure earners cited by staff include Sergio de Rojas, Charles Blackburn, Brian Wolpert, family of former police Chief Rich Molinari, and much more to include retired police officers who are supporters of the mayor, all alleged to hold well-paid positions within or connected to the Board of Education. While direct public records confirming their exact salaries remain blocked or unavailable, insiders insist that all are comfortably over six figures — while teachers scramble to fund classroom basics.

Public salary databases show that Union City’s highest district salaries in recent years have reached as high as $284,478, making it clear that six-figure compensation is commonplace at the top.

Retaliation and Fear

Adding to the controversy are allegations of broader political retaliation and fear inside the district. One employee reported that Superintendent Silvia Abbato privately admitted she was told not to communicate with individuals who opposed Stack-backed Assembly candidates in the recent primary election. The superintendent allegedly expressed fear that if she were seen as disloyal, her family members — who also work in the district — would lose their jobs.

Sources describe Stack as “petty” and “revengeful,” saying that loyalty to his political operation often determines job security in the schools more than merit or performance.

Impact on Students

The consequences, teachers say, fall hardest on students. Special education and autistic children are reportedly being placed into general classrooms, not because it benefits their learning, but because the district claims it has “no money” to properly fund special education programs.

Teachers warn this practice shortchanges both the students who need specialized instruction and those in general classrooms, while raising legal questions under federal education law.

Teachers Fed Up

The situation has left many educators frustrated and demoralized. “We have hundreds of millions of dollars flowing into this district, and yet we can’t get copy paper or cleaning supplies,” said one teacher who asked not to be named for fear of retaliation.

Some say the only way forward is collective action. “If you’re fed up, you need to speak out — and speak out in numbers — if you want real change,” another teacher said.

The Bigger Question

With $340 million in annual revenues, hundreds of millions in state and federal aid, and six-figure salaries for political insiders and their families, the reality inside Union City classrooms is difficult to reconcile.

As one viral Facebook post put it: “When a school district receives $122 BILLION dollars in federal funding and yet your school has no printers, no copy paper for teachers, no pencils, no garbage bags, no water for teachers… It begs the question… WHAT ON EARTH are these districts spending their money on?!”

Until OPRA requests are answered and payrolls are publicly disclosed, Union City taxpayers, parents, and teachers may never know the full answer. But the pressure is building — and more employees are beginning to break the silence.