Tough decisions last spring could make weathering the state’s
latest financial storm easier for the Gilroy Unified School
District. But not much.
Tough decisions last spring could make weathering the state’s latest financial storm easier for the Gilroy Unified School District. But not much.
School district officials left a state budget workshop in Sacramento with only an inkling of what the coming months will bring. But based on proposals, the district will have to cut about $3 million from this school year’s general fund budget of about $86 million, $5.5 million next year and more than $9 million the following year.
The state budget crisis – now with a $41 billion deficit expected for this year alone, including about $6.3 billion in education – has produced the unsavory set of options for education that are typical in budget crunch times: transferring money from usually restricted funds, lowering the reserve, borrowing from the county treasurer, reducing the school year, increasing class size or making layoffs.
Luckily for GUSD, the mid-year cuts won’t be so bad and the district won’t have to face many of those options, said Deputy Superintendent of Business Services Enrique Palacios. The district shaved $4.5 million from its budget in the spring. In addition to that, the district has tucked away a little more than $2 million on top of the state mandated 3 percent reserve which can be used to cushion the impact of midyear cuts.
“We acted very proactively,” Palacios said.
He presented this information to trustees at Thursday night’s board meeting and plans to begin the process of identifying $1 million in mid-year cuts.
“I don’t even know where to get it,” Palacios said. “There are very few options because we can’t lay off teachers.”
Because the governor has proposed giving districts the flexibility to use categorical funds – dollars that are meant for a specific purpose such as adult education – the district could temporarily use that money towards its general fund needs.
But, like every other district across the state, Gilroy is unsure of its future.
“There are way too many proposals out there to even begin to plan,” Palacios said. There are a couple more certainties that secure Gilroy schools’ future, though. Before the state put a halt on facilities bonds, the district secured a $150 million bond to modernize and build school facilities. And, unlike most other districts, Gilroy’s student population is growing, which means more money per pupil.
What’s worse than the possibility of having to slash $17.5 million from the district’s budget over the next three years is the indecision, Palacios said.
“No one in Sacramento can make a decision,” he said. “We have very little control over the money. We can work, and plan for what we need to do, but it’s the ambivalence.”
Palacios was hopeful that a new president and administration would bring about positive change for California schools.
“I believe that once Obama comes into office, one of the first things he’ll do is bail out states like California,” Palacios said. “I’m talking a massive financial bailout in the same fashion as Wall Street.”
