A round of cheers broke the usually austere atmosphere of the
Gilroy Unified School District board room when Superintendent
Deborah Flores announced her decision not to issue pink slips this
year.
A round of cheers broke the usually austere atmosphere of the Gilroy Unified School District board room when Superintendent Deborah Flores announced her decision not to issue pink slips this year.
Without issuing layoffs, imposing furloughs or increasing class sizes, the school district will close its remaining $2.4 million budget gap over the next three years by cutting costs as far away from the classroom as possible, Flores told the school board. Last year, trustees voted to issue 42 pink slips and this year, other California school districts have issued a total of 18,000 pink slips.
The $9 million question mark district staff predicted for the 2010-11 fiscal year shrank by 80 percent to $1.8 million since staff presented budget targets last month due to a number of variables at the state level. But the drastic swing in the district’s favor illustrates the volatility of the budget proposals and could be temporary, trustee Tom Bundros pointed out.
“In a matter of weeks, the third year ending balance has swung nearly $10 million,” Bundros said. “There’s a high probability it’s going to swing back. I don’t have a lot of confidence that we’re going to get through June before more massive cuts.”
Deputy Superintendent of Business Services Enrique Palacios said that while the state budget continues to evolve, it ultimately hinges on several propositions scheduled to go before voters at a special election May 19. If approved, these proposals would streamline the state lottery to maximize profits, establish a state “rainy day” fund and institute supplemental payments to school districts beginning in 2011.
Though trustees didn’t approve the list of budget targets for the next three years in its entirety, they did agree to hundreds of thousands of dollars in cuts and revenue enhancements throughout the district.
Leaving unfilled the assistant superintendent of human resources vacancy – a position that pays $155,000 annually including salary and benefits and was vacated last year when Michael Lyons resigned – for the rest of this year will save the district $79,000. Downgrading the position from an assistant superintendent to a director in the future will produce $30,000 in ongoing savings. Further savings for the current fiscal year will be realized by reducing the transportation department’s expenditures on supplies, by using nearly $1 million left over from the district’s general fund, and by using funds from food services, deferred maintenance, capital facilities and Measure P – a facilities bond passed by voters in November – to subsidize business services staffing.
Downsizing at the district office will contribute about $400,000 in ongoing cost savings and an agreement with the Gilroy Teachers Association to provide early retirement incentives to 15 teachers who are over the age of 58 and have been teaching in the district for at least 10 years could provide an additional $270,000. Forty-one students currently attending private schools who plan to switch to GUSD will generate an additional $220,000 in new revenue.
Though the district was considering charging families about $1 per student per day for busing – creating upwards of $175,000 in revenue – enough trustees balked at the idea that the item was tentatively removed from the list.
“I can’t support charging kids on free lunch whose families are more in need than ever,” said trustee Denise Apuzzo.
Though Palacios said he’s implemented transportation fees with minimal difficulty in other districts, trustees voted to defer the item in lieu of other options. He said it was still unclear the effect the federal stimulus package would have on Gilroy’s schools.
At the behest of teachers and trustees, Flores said she would send out a letter to staff asking for their suggestions to close the budget gap.
“Stay tuned,” Palacios said. “We’re currently in good shape but cautiously looking toward the future.”
2008-09
CUTS:
$984,000 carryover from general fund
$50,000 reduction in costs to transportation
$79,000 leaving assistant superintendent position open
$182,000 other cuts
_______________
$1,296,000 total cuts
Required budget reduction: $0
2009-10
CUTS:
$1,296,000 carryover from previous year’s cuts
$139,000 transportation cuts (deferred)
$377,000 district office downsizing
$51,000 other cuts
REVENUE ENHANCEMENTS:
$276,000 early retirement
$175,000 transportation fees (deferred)
$222,000 student growth from private schools
________________
Total cuts + revenue enhancements = $2,536,000
Required budget reduction: $580,000
2010-11
CUTS:
$1,955,000 carryover from previous year’s cuts
$139,000 transportation cuts (deferred)
$377,000 district office downsizing
$51,000 other cuts
REVENUE ENHANCEMENTS:
$268,000 early retirement
$200,000 transportation fees (deferred)
$230,000 student growth from private schools
_________________
Total cuts + revenue enhancements = $3,220,000
Required budget reduction: $1,816,000
Undesignated ending balance: $1,404,000
