HV school district passes budget that bleeds red ink; holds onto its reserves

Despite 13 layoffs and a retirement finalized in May, Happy Valley Union Elementary School District board passed next school year's budget with a $69,300 spending deficit.

"The budget reflects bringing some of those people back," Larry Robins, district superintendant, said.

The budget, he said, includes rehiring 6.5 of the full-time equivalents laid off.

Before those teachers can be called to work, however, there must be students to teach. School attendance dropped from 594 last year to a current enrollment of 540 students, said Debbie Capelli, district chief business officer.

"People are leaving the state," she said, echoing a concern voiced by other school district heads in the area.

Aside from declining enrollment and deficit spending, the district - like other school districts - waits to determine what new cuts will add to present budget woes.

The budget also includes an expected state-mandated 20 percent reduction to the district transportation budget. Other budget cuts made by the district include a $128,000 reduction to instructional materials and a cutback on travelling to conferences.

The district's general fund reserve is expected to hold at 14 percent, Capelli said. While she added that next year's budget is anybody's guess, she said she was confident that the district's reserve would hold out over the next two years.

Capelli emphasized that funds from the recent bond measure passed by the district are tied to the projects for which the bond was passed, namely, a new gymnasium. Those funds cannot legally be used for operating expenses or to hire more teachers, she said.