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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.
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