Local school districts prepare for state budget crunch

Local school districts are doing their best to design budgets for the 2009-2010 school year amid a looming state budget crisis and long-term deadlock in Sacramento.

Legislators finally approved the 2008-2009 budget in September - the most delayed in state history. School districts did not receive a full cost-of-living adjustment (COLA) to account for rising salaries, utilities, and supplies, and the state's deepening fiscal crisis is likely to require midyear cuts.

Future budget predictions don't provide relief. The governor introduced his 2009-2010 budget proposal on Dec. 31, and it projects a two-year state budget shortfall totaling $41.6 billion.

The Anderson Union High School District discussed the governor's budget proposal at their board meeting on Tuesday, Jan 20. The state budget deficit was described as the worst economic gap in decades of California history.

"We get to live through some of the worst economic times in California," said AUHS district superintendent Tim Azevedo.

Superintendent Azevedo and Chief Financial Officer Megan Curtis are identifiying areas where the district will need to make cuts.

They stated in a budget presentation that the district would begin to make reductions by reducing spending and staff travel to "essentials" only.

"A major concern is cash flow in all districts," Azevedo said. "The cash on-hand is used to make payroll and to pay our bills. We (and all districts) need to preserve cash flow to pay our employees."

District officals said they have begun to improve office procedures and utility use. The plan on eliminating district cells phones, which are estimated to cost the district $14,000 per year.

"That's a lot of money for convenience," Azevedo said.

The districts plans not to backfill staff vacancies in 09-10, reduce operating budgets, and restructure master schedules - eliminating classes of 10 and 12 students. The district said there is the possibility of layoffs, depending on the level of cuts from the state, and what is absorbed by retirements and non-reelects that would not be back filled.

"It's a pretty bleak year," Azevedo said. "If there is an upside, everyone in the entire state school system is in this together."

Other local school districts have been reacting to and planning for a deepening budget crisis as well.

A letter to the Cascade Union Elementary School District board of trustees from Donell Evans, the districts chief business official, stated that if the governor's new proposal were adopted, their district would be faced with a total of at least $662,165 in reductions that would need to implemented as soon as possible, with additional reductions needed in subsequent years.