School district forced into budget revision

By Stephanie Bertholdo Acorn Staff Writer

Las Virgenes Unified School District (LVUSD) has dipped below its 3 percent required reserve to 2.9 percent, with current projections showing deficit spending of $1.2 million.

Ordinarily, a drop below the required reserve could open the door to state oversight, but with California having its own budget nightmare, legislators have waived the 3 percent minimum for the remainder of this year. Moreover, the legislature also showed flexibility by allowing a one-time chance to use ending fund balances from restricted programs to offset some of the short categories. One such program is child nutrition.

The budget revision was approved by the LVUSD school board. Under state law, a revised budget must be presented to school boards within 45 days of the state’s annual fiscal spending plan.

According to Don Zimring, deputy superintendent, LVUSD must generate an additional $54,000 in revenue, cut expenses or combine the two strategies to restore the district to a 3 percent reserve level prior to the approval of the 2004/05 budget. According to the staff report, "Failure to do so will only compound the district’s fiscal problem in the future," since current legislation has set a deadline for the return of the 3 percent reserve to 2005/06.

Zimring explained that the district’s budget dropped more than anticipated because there’s been no significant relief from the high cost of workers’ compensation, although claims have decreased. Special education costs continue to spiral upward, as do insurance rates, which doubled this year from $250,000 to $500,000.

Board member Gordon Whitehead said that California has the highest workers’ compensation rates, with the lowest benefits. "Maintaining the level of services is going to be a huge challenge without something happening," said Whitehead, a CPA.

Something positive already did happen—previously approved budget cuts totaling more than $1 million were restored due to extraordinary efforts of the Las Virgenes Education Foundation, combined with the support of the cities of Agoura Hills, Calabasas and Westlake Village.

However positive the Foundation has been, "The fiscal crisis facing the state of California has resulted in unprecedented cuts, delays,and changes in accounting practices, which have created significant challenges to the school district," said a staff report.

Zimring said, "Legally we’re fine for the 2003-2004 school year."

But Superintendent John Fitzpatrick added that the district must become much more creative ––and soon.