Districts Readying for Never-Ending Budget Rollercoaster

With state revenue falling well below estimates, school districts across Calif. are holding a collective breath and are waiting for word from Sacramento on whether funding will be heavily slashed.

The details to be released Dec. 15 may very well paint a picture of major cuts, but it is still anyone’s guess.

“The way things have become the past couple of years, it’s really uncertain ‘til the time comes when we find out one way or the other,” said Marc Chaldu, assistant superintendent of business services for the . “You don’t know exactly what you’re trying to plan for.”

K-12 schools received virtually flat funding for 2011-2012 at just over $43 billion, roughly $717 million less then in 2010-2011, according to data provided by the California Department of Education.

“[We’re] trying to maximize revenue coming in and staying as level as possible with our expenditures,” said Chaldu.

Charter Oak abides by a similar stance.

“The plan has been … to keep the classroom instructional program our highest priority,” said Kathy Perkins, chief business officer for the Charter Oak Unified School District. “The plan was and continues to be to evaluate all expenditures, and approve them based on district priorities and need.”

State revenue projections fell short by $539 million in July, according to John Chiang, California state controller.

The budget deal passed in June contained Mid-Year Triggers that would automatically cut education funding if revenue fell below two benchmarks.

Tier 1 reductions would cut funding at the community college and university levels if revenues fall by $1 billion.

If state revenues fall short by $2 billion, Mid-Year reductions will also hit K-12 schools. A $1.5 billion funding reduction would occur and may force districts to reduce the school calendar by seven days effective Feb. 2012, in addition to the five-day reduction already in place.

Beyond $2 billion, K-12 schools could see transportation funding ($248 million) eliminated by January, according to the CDE.

Both districts have tried to find ways of cutting costs.

For Charter Oak, the long-term plan is to contain spending and make reductions to cultivate a 3 percent reserve for three years out, according to Perkins.

The district has been able to save money by hiring a former administrator and teacher in January to head an energy management program that allegedly has saved $154,000 in energy costs to Charter Oak.

In May, Glendora Unified rescinded after Gov. Brown’s May revise showed a slightly more positive outlook.

Doug Ferrell, Glendora Unified board president, said that Glendora had a two-fold dilemma, declining funding and enrollment.

“Declining enrollment was almost insurmountable without closing schools,” Ferrell said in regards to the closing of Williams Elementary in 2009-2010. “With District of Choice we can keep our ADA constant over the long haul.”

District of Choice allows potential students outside Glendora Unified to attend its schools.

“It’s truly a lifeboat for us, allowing us to keep everything open and stay afloat,” Ferrell said.

Charter Oak rescinded pink slips in March to nearly all 37 certificated personnel. A few faculty positions remain vacant due to declining enrollment.

Some of the agreed upon by the Charter Oak board and Charter Oak Educators Association were rescinded in July, including the six furlough days equating to a 3.24 percent salary reduction and step increases were restored after Gov. Brown pledged to keep 2011-2012 funding at last year’s levels.

But money problems will continue to loom.

“These are tight monetary times,” said Charter Oak board Vice President Joe Probst. “We have facilities that need to be upgraded, we have academic programs that we’re … trying to develop. Just because money is short doesn’t mean you stop.”