Having just returned from the California School Board Assn.’s annual education conference to find our District's first interim budget report waiting for me, it seems appropriate that I write about money.
While there were many educational topics discussed at the conference, the specter of budget cuts loomed large.
We have escaped mid-year budget cuts, but there is a real possibility of late-year cuts.
Next year is not looking any better.
How does the School District cope with this uncertainty? The First Interim Report is a good document to enlighten us about our district's finances. The state of California imposes multiple requirements on the budget of a school district.
Rules of the Game
We must:
• Provide budget projections over a three-year period.
• Maintain a balanced budget in each of the three projected years.
• Reserve a minimum of 3 percent of the current year's expenditures for economic uncertainty.
To meet these goals means making assumptions about the future.
Most of our revenue is based on our enrollment, more specifically the average daily attendance of our students.
Over the last five years, our average daily attendance has declined by 174. Will it continue to decline? Do we want to reduce the number of permit students knowing that it will reduce our income?
Per-Student Funding Down
The state initially told us we would receive $6,225 for each student this school year. We are actually receiving $5,931. Will they live up to their promises next year? When the state reduces our income, the budget must be adjusted to stay balanced three years out. Our Business Services Dep. has done a good job of keeping the District budget in balance, but the precariousness of the state budget makes this task ever more challenging.
One session I attended at the conference was titled, "What to Cut When You Can't Cut Anymore."
The presenter started the discussion by telling us that the state legislators believe in state control of the schools when there is money and local control when there isn't.
In other words, the local school boards are going to have to make the cuts the legislature has been unable to. This year, we've lost about $300 per student. Over the next year, there is likely to be no cost-of-living adjustment and possibly other reductions in state support.
With more than 92 percent of our unrestricted expenditures going to salaries and benefits and the step-and-column increases built into our employee contracts, no COLA means cuts because our budget must be balanced.
What are we to do?
First, the public must be kept informed.
The Community Budget Advisory Committee meets regularly to review budget issues. The meetings are open to the public.
Transparency in our budgeting process encourages informed public input on the budget decisions that will have to be made.
Next, we must help our legislators understand that uncertainty in the state budget is unacceptable. They need to get the state budget process in order so that we can plan ahead as required by law.
Finally, we cannot lose faith in quality public education for our children. They deserve nothing less.
Dr. Russell is a member of the School Board
