GILROY
– The school district’s most recent budget revision, based on
the latest state projections, is full of pluses and minuses. It
includes a notable minus for the 2003-04 school year: a budget
deficit of $301,000.
GILROY – The school district’s most recent budget revision, based on the latest state projections, is full of pluses and minuses. It includes a notable minus for the 2003-04 school year: a budget deficit of $301,000.
Although it previously planned to cut $2.316 million for a general fund surplus at the end of this year and through 2006, Gilroy Unified School District now is expecting to be in the red come June. The deficit comes despite a plan that includes more state money and avoids some layoffs.
Trustees Thursday approved a new plan that will cut $2.225 million. In 2005 and 2006, the district still expects to have surplus funds of $224,000 and $647,000, respectively.
A few of the reasons for the difference: more money from the state and grants, more money from a slight attendance improvement, less money saved from cutting bus routes and less money due to high gas prices and more water usage.
Even while calling the current budget “optimistic,” Trustees approved the latest version, which Assistant Superintendent Steve Brinkman said is changing day-to-day. California requires school districts to approve a final budget by June 30, and this year it appears the state budget may even make that deadline.
If the budget numbers look the same in June, the district will be allowed to approve the shortfall without fear of discipline from the state, he said.
“Because so many districts are in trouble, the state is basically saying, ‘You can (approve a budget deficit with) a one-time waiver without any oversight or sanctions, but you’d better balance it in one year’,” said Brinkman, head of administrative services.
The revised budget, based on Gov. Arnold Schwarzenegger’s May revision, is actually based on some “shaky ground,” he said.
The Legislature is considering a proposal to provide districts revenue equalization, meaning districts that receive less money per student than the statewide average would get a bonus.
“If the budget is adjusted with revenue equalization, it’s over $200,000 in revenue to us that is in here,” Brinkman said.
However, he cautioned that the governor’s plan for the equalization looks “a little weak” given some resistance at the state level.
Schwarzenegger’s budget is bringing GUSD another unexpected $256,000, in the form of a cost-of-living funding increase, which the district hasn’t seen in years.
Other savings come from slightly better attendance – although the district still loses $297,000 there – and $103,000 in grants.
The state also is taking away. Although it is unclear what the exact impact will be, the state’s minimum school funding was decreased by $2 billion this year.
Education groups supported suspending the Proposition 98 minimum finding guarantee, Superintendent Edwin Diaz said, basically because things could have been worse.
“Even with the (state’s bond), there’s still a budget gap at the state level,” he said. “There is pain that’s going to happen across the state.”
Another source of pain in the district’s budget outlook is familiar to many Californians: high gas prices. Increased utilities, gas and diesel costs set the district back $138,000.
Included in the latest budget is a $55,000 decrease that the district hopes to avoid. The county sent GUSD and Morgan Hill Unified School District bills for special education services from two years ago, and a second bill for this school year could be on the way. Keiko Mizuno, GUSD’s director of business services, said she is contesting the charge because she could not find an agreement with the county that would warrant the charge.
“Keep your hands on your purse,” Trustee Jim Rogers said.
One major plus in the latest budget projections applies to some employees who were given layoff notices earlier this month: two nurses, one bus mechanic and several bus driver hours have been reinstated.
Most of the employee layoffs, which equal the hours of roughly 16 full-time employees but affect more people through reduced hours, are still on the books.
The district’s nurses helped form a plan to keep their positions – but reduce their hours – and save money in other areas. By reducing the hours of two nurses and several non-teaching employees GUSD will save $43,000, and by cutting board benefits, it will save $8,000.
“I think the nurses really should be commended for coming up with their own plan that fits with what the district needs to do,” Rogers said.
The school board has been digesting proposed budget reductions since mid-January, when Schwarzenegger made his last revision. A cut in bus routes has long been a point of contention between the school board and bus drivers whose job hours were on the line. Some of those hours will be reinstated, costing the district $94,000, because the routes are still being worked out.
Brinkman reminded trustees that things may still change before June 30, or even after, that affect the next three years.
“We’re looking at a deficit this year,” Brinkman said. “Let’s hope it doesn’t get worse, let’s hope it gets better.”
