Props 57 and 58 hold fate of schools budget Props 57 and 58 hold fate of schools budget (February 27, 2004)

Trustees face tough decisions as money decisions loom
by Teresa C. Brown

With a list of potential expense cuts in hand, the school board reviewed a projected 2004-05 and 2005-06 budget report with one scenario painting a gloomy portrait of a nearly $3 million deficit should Propositions 57 and 58 fail on next week's election ballot.

"If (Propositions 57 and 58) don't pass and we don't get some other relief, then we will have to reduce the expense of personnel, and layoff notices will have to go out," said Superintendent John Casey. "Whether or not in the final analysis it comes to fruition, I don't know, but this year it's more likely than last year."

If the propositions fail, the projected 2004-05 budget reflected an anticipated negative revenue amount of $195,775, in large resulting from an expectation that the cost of living adjustment would be eliminated, as it has in years past, reducing district income by $1.8 million.

"It's very difficult for us to say until we see what happens with the election next week," said Sandra Lemmons, assistant superintendent of Business Services.

Factoring in expenses, the overall potential shortfall could be $2,964,775. Moreover, none of the budget projections took into account any salary adjustments or textbook requirements.

Even if the pair of propositions passes, the projected 2004-05 budget reflected a deficit of a little over $1 million.

The largest item on the expense side of the projected budgets was the more than $1 million operating deficit carried over from the 2003-04 school year. "Just over $1 million we have to make up one way or another," Lemmons said, adding that a "conscious decision" would have to be made about reserves or reducing expenses.

In addition to the employee salary increase step schedule, expenditures on the projected 2004-05 budgets were also weighted down by a $185,000 loss of state funding for reading specialists. "We have reading specialists at each one of our K-5 sites," said Lemmons. "In the past we have had special income to help us pay for that, and that is now gone."

Other expenses included $345,000 "rollover costs," which include utilities, increases in insurance and in repair contracts.

For the 2005-06 budget, the passage of the propositions could leave the district with a positive budget, but only by $35,346. Total income is expected to be $2.8 million against just under $2.8 million in expenses.

Coupling the projected budgets, the board also received for review a suggestion list, prepared during the last two years, of potential expense-saving measures. The measures range from $26,000 for football safety equipment repair up to $787,000 affecting K-3 class-size reduction.

A timeline for a possible parcel tax was also given to trustees. The timeline, which begins Dec. 3 and ends March 25, 2005, outlined an action schedule to have a parcel tax placed on next year's March 1 ballot. If the tax passes in 2005, the dollars would be realized in 2006, Casey said.

"This really sheds a dark reality and we need to be prepared," said Trustee Pat Kernan. "Unfortunately I don't feel confident that those propositions right now will make it."

If the propositions fail, Kernan said, "To me, everything is open on the table. We have to sit down with the unions and sit down with the community. We have to take hard actions and swift actions. We're already in the hole from last year."

Should the bonds not pass, a special board meeting will be held to determine how to handle the layoff notices that must be sent out if layoffs are expected. By law, PUSD must notify any certificated employee, that is, any position that requires a special certification such as teachers and most administrators, by March 15 of possible layoffs, said Jerri Long, PUSD public information officer. She noted that classified support staff, such as custodians and secretaries, have only 30-day notice rights.

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