BUDGET UPDATE FROM THE DISTRICT OFFICE

In January 2008 the governor declared a “fiscal crisis” and a time of uncertainty and concern began. Public agencies including school districts were told to expect mid-year reductions and even bigger cuts next year.  The implications were significant, and in some school districts the anxiety about layoffs began. Some school districts have initiated staff reductions (one southern California district reportedly sent lay-off notices to over 500 certificated employees) other districts are struggling with balancing the budget.

Budgets are spending plans for employee compensation, equipment/material, and capital expenditures; all necessary to run schools. The state recognizes three types of budgets: positively certified, qualified, and negatively certified. Simply, a positively certified budget means the district has enough money to pay the bills, a qualified budget means the district may not have enough money to pay the bills, and a negatively certified budget means the district does not have enough money to pay the bills. Even with a positively certified budget some districts will have cash flow problems and may have difficulty meeting the July and August payrolls, because part of the state’s budget strategy is to delay the money they should send to school districts in June to September.

The Central Union High School District has not issued layoff notices to either classified or certified employees, has a positively certified budget, and expects to meet its July and August payroll obligations.  In addition the district is proposing total compensation raises equal to the COLA for this school year. Next year will be more challenging and the proposed CUHS district budget will contain almost $800,000 in cuts from this year, none from employee compensation. The state will probably not adopt a budget for the 2008-09 fiscal year until the fall. So even though school districts adopt budgets in the spring, they must be adjusted once the state adopts its budget.