Roughly 40 people filled the room Thursday evening as Gilroy
Unified School District board members addressed possible routes for
addressing the impending fiscal crisis for the 2010-11 school year.
With a possible $7.3 million in cuts looming on the horizon, this
was the third out of four public budget study sessions taking place
at GUSD administrative offices at 7810 Arroyo Circle prior to the
statutory March 15 deadline for announcing layoffs.
Roughly 40 people filled the room Thursday evening as Gilroy Unified School District board members addressed possible routes for addressing the impending fiscal crisis for the 2010-11 school year.
With a possible $7.3 million in cuts looming on the horizon, this was the third out of four public budget study sessions taking place at GUSD administrative offices at 7810 Arroyo Circle prior to the statutory March 15 deadline for announcing layoffs.
A major item on the table was reducing the district’s economic reserve below the required 3 percent to a 1.5 percent reserve for economic uncertainties, something trustee Mark Good called a “temporary Band-Aid.”
“We need to make broader cuts that are ongoing,” he said.
GUSD Superintendent Deborah Flores replied, “there’s not a right answer here.”
She indicated whatever cuts the district makes will be agonizing, but necessary.
Trustee Tom Bundros said he could not support reducing the economic reserve since it is designated for unplanned emergencies.
“We’d have to come up with a plan right away to pay it back, so it’s a no-op for me,” he said.
Trustee Jaime Rosso labeled the move – something that could hurt the district’s credit rating – a short-term solution.
Contingent on a June 2011 special election where voters may or may not approve a five-year extension of temporary tax measures – which would maintain flat funding from the state guaranteed by voter-approved Proposition 98 – GUSD must slash $3.3 million in spending.
If the tax measures don’t pass, the district will be faced with a $7.3 million shortfall or possibly more, according to Flores.
“We need to take our medicine now and make some hard choices,” said Rosso. “I would not support eliminating or reducing our 3 percent reserve.”
Rhoda Bress, board president, argued the reserve is meant to be used for emergencies.
“If this isn’t a rainy day, I don’t know what else it could be,” she said.
Another difficult subject explored but not solidified was the reduction of secondary school administrative positions.
“It would have to be the assistant principal,” said Flores, mentioning one removal at the middle school level, and one at the high school level. “It’s all that’s left.”
As trustees addressed routes to take should the tax measures pass, items agreed upon included implementing a spending freeze, reducing site and department budgets by 5 percent, opting out of a safety credit program, offering supplemental early retirement plans, sweeping funds from adult education, keeping the Advanced Path program cost-neutral and possibly eliminating two full-time positions at Mount Madonna School by increasing class sizes.
“Once you eliminate a program in this district, it never comes back,” said Bress, regarding the motion to sweep $90,000 in flexible funds from adult education. “So we have to hold onto it, even if by the skin of our teeth.”
Reorganization and downsizing at the district office, an item also on the list with a possible savings of $500,000, must be discussed in a closed session meeting, said Flores.
Other items shelved for further discussion included eliminating additional staffing at each middle school by reducing intervention programs, a possible savings of $91,000.
“It’s not something we want to do, but we don’t have too many places to go,” said Flores.
She also said GUSD has received “pages and pages of suggestions” via their online suggestion forum, and that the district had spent time analyzing those suggestions as best they could.
“But our focus has been on the items that save the most money,” she reminded, pointing out skimming will help, but it won’t cover everything.
Flores said the district was receptive to eliminating cell phones for management staff, something she said could save roughly $15,000.
Further reductions on the table include increased class sizes, eliminating elementary music and physical education programs, implementing furlough days and across-the-board salary reductions.
“These are not easy times in public school education,” said Bress.
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