Beyond The Blackboard
Sunday, November 23rd, 2008For those who do not get some of the local independent papers, below is my column for this week.
BEYOND THE BLACKBOARD – November 23, 2008
Budget Crisis Continues
By Erin Kutnick
What began as a financial and mortgage crisis about fifteen months ago has now spread to all aspects of our economy. The inability for consumers to obtain financing and the decline in incomes has translated to fewer sales on homes, cars, consumer goods, and vacations. All this has severely impacted revenues at the state level as income tax, sales tax, and even property tax has declined.
The 2008/2009 state budget was finally approved an unprecedented 85 days late. Shortly after it was signed by the Governor, it became apparent that even that budget which was a mixture of cuts and revenue enhancements including borrowing against future revenue could not be funded. Earlier this month, the Governor called the legislature into a special session to address the continuing deficit. The senate and the assembly appear no closer today to reaching consensus than they were over the summer.
How will this affect us within CUSD? That answer is mostly unknown other than the certain knowledge that any mid-year cuts will be devastating. The school district and trustees are currently holding a series of budget workshops not to address this potential problem but another shortfall that must be dealt with before December 15.
Under AB1200, school districts must present to the county department of education a three-year budget. The actual budgets for the next two years are estimates since the money from the state is unknown, but the numbers and fiscal solvency must be documented. At this time, the Orange County Department of Education is requiring CUSD to identify $12.5 million in cuts for the 2009/2010 and 2010/2011 school years to prove their fiscal solvency. The county is also asking for a “back-up” plan on the sale of the surplus property in Aliso Viejo.
At the first of three budget workshops, district staff, trustees, and community members did discuss the potential mid-year cuts offering a multitude of suggestions and ideas. At the second workshop, Superintendent Carter chose to focus only on the 3-year budget issues that must be addressed before December 15. District staff presented recommendations that identified about $11.4 million in cuts leaving just over $1 million left to identify. These cuts are especially difficult as most want to protect all of the current programs and avoid anymore lay-offs. But when 85% of the budget is comprised of salaries and benefits, there is not a lot left to work with.
Already identified are: reduce supplies by 25%, rent revenue from Building C (unused part of the Administration Building), no salary increases for the next two years (teachers, administrators, and classified), paperless agendas, bus rental, and draw-down reserves. Several community members suggested other ways to save money and identify the additional $1 million. Trustee Darnold suggested a utilities audit to make sure all schools were efficient and no money was being wasted. All feasible suggestions should be included in the final workshop held on December 2 at the district office. Trustees will vote on the final numbers on December 8, 2008, the same meeting where the four newly-elected Trustees will be sworn into office.
For more information on the budget presentations and the next workshop, visit the Capistrano Unified website at www.capousd.org. Join me next time for more Beyond the Blackboard as I continue to monitor the budget crisis and other important issues within CUSD.
Erin Kutnick is the mother of three children, active in PTA, Athletic Boosters and other community organizations.