Broken school budget feared
'The size of this is really leaving everybody speechless.'
By Stephanie Bertholdo bertholdo@theacorn.com

School districts throughout California are bracing for a fight with state officials now that Gov. Schwarzenegger has threatened to shore up the state's $14-billion budget shortfall with draconian funding cuts to schools.

Even the protection of state law won't be enought to prevent the cuts, school officials say.

Las Virgenes Unified School District stands to lose nearly $7 million in funding based on budget projections, said Karen Kimmel, chief business official.

"The size of this is really leaving everybody speechless," Kimmel said. "It's quite amazing that this is being proposed in light of the fact that (2008) is supposed to be the 'Year of Education.'"

If Schwarzenegger follows through with his budget-slashing plan, Las Virgenes will lose $325,000 in state funding this year, Kimmel said.

The district receives more than 85 percent of its funding from the state.

Proposed cuts for next year are even more ominous, school officials say.

The budget calls for a $4million hike in the cost of living allowance, but the state is reneging on the increase and even threatens to decrease the amount by $2.8 million.

"In reality, (this is) a $6.8 million swing in our budget," Kimmel said.

"There is no way, in my estimation, that this district can sustain a $7 million swing," said Superintendent Donald Zimring, who called the proposal "devastating" and said the district has not been faced with such harsh budget cuts since the 1978 passage of Proposition 13, which changed how schools were funded. With the capping of property taxes, school funding fell victim to fluctuating state budgets until the 1998 passage of Prop. 98, which guaranteed that 40 percent of the state budget went toward schools.

But when the governor declared a fiscal emergency in January he reportedly opened the door toward to the dismantling of Prop. 98.

Zimring called a budget study session last week with school board members and teachers to discuss the crisis. He said he wanted to provide information to employees and the community that public education is being used as a "leveler" for state budget problems.

"The state's budget is structurally flawed with past decisions based on one time funds and extensive borrowing," Zimring said.

Below average

According to Education Week, California ranks 47th among the 50 states in school funding. The national average is $8,973 per student- in California the expenditure level is $7,081 per student.

By comparison, New York and New Jersey pay more than $12,200.

"If LVUSD was funded at the national average, our budget would be increased by $22 million," Zimring said. "Regardless of what the state does, our kids have to compete against districts with more money than other states."

To make matters worse, the majority of California schools are experiencing declining enrollment, Kimmel said. Student enrollment in Las Virgenes has fallen by 457 students in the last five years and current projections indicate there will be a drop of 223 students next year. Kimmel estimates that declining enrollment will reduce funding by $1.3 million next year.

Another issue unique to Las Virgenes is the high cost of special education programs. The district has a higher proportion of special education students than other districts statewide.

"This is not an indictment, it's a fact," Zimring said.

Urgent action

By law, the legislature must contend with the budget crisis immediately.

Kimmel said the state cuts will most likely be targeted to funds that have yet to be allocated to the school districts and funds that have yet to be spent.

If Prop. 98 is suspended, school districts will suffer a $4plus billion loss in 2008 and 2009, Kimmel said. To make up the rest of the shortfall, the governor also announced cuts to social services, health services, infrastructure and prisons.

"There's going to be a lot of people hurt with this budget proposal," Kimmel said.

Zimring said he hopes the Governor's initial threats will soften, but said he doesn't expect a full accounting of the budget until the summer.

"We have no idea what the final budget will look like, but it won't be as awful as (currently) proposed, but nowhere near as good as expected," Zimring said.

In the meantime, a freeze will be placed on nonessential purchases and hiring. Employee layoffs are a possibility.

A taxing problem

Measure E, the $98-per-year parcel tax first passed by voters in 2003 and renewed in Nov., 2007, preserves a variety of school programs while maintaining small classroom sizes on Las Virgenes campuses.

The tax generates about $2 million for the school district each year. Measure E money is earmarked for art, music and physical education programs, and is considered "static money" because there is no inflation clause. But there is little leeway for Measure E money to help offset the state cuts, school officials say.

There is zero latitude with Measure G funds. The $128million bond measure that passed in 2006 pays only for buildings and technology, not programs.

On a separate note, Zimring said if Gov. Schwarzenegger hadn't repealed the vehicle licensing fee when he came into office the state would have a balanced budget today.

But until now, Sacramento has shied away from tax increases.

Boardmember Terilyn Finders said the politicians in Sacramento "want us to cry uncle."