LVUSD may 'hit the skids,' board president says

Las Virgenes Unified School District will once again file a "qualified" interim budget with state officials, explaining why the district will fail to meet its financial obligations for the next three years.

The district will be unable to set aside at least 3 percent of its budget in its reserves, a requirement of Assembly Bill 1200 that passed in 1991 to ensure that districts are prepared to meet their financial obligations.

The district's failure has little to do with how the school district manages its budget, according to school officials, who point to the $24-million state deficit and the overall weak national economy as the real culprits in gutting local school budgets.

The cuts will bring reserve levels down to 2.8 percent next year, 0.20 percent in 2011-12, and by 2012-13, the district will be in the red, operating a negative budget to the tune of $3.5 million, or a negative 4.5 percent in what should have been a positive 3 percent reserve.

With apparently little hope for any improvement in the state budget in the near future—and possibly even more dire budget news in the years to come—Dave Moorman, the board of education president, said at the June 10 board meeting that within three years LVUSD will "hit the skids."

"It's been a tumultuous three weeks . . . a tumultuous year," Superintendent Donald Zimring said about the state budget crisis that threatens California education.

Since the second interim report, district officials are still faced with many "unknowns," said chief business official Karen Kimmel, who adjusts the budget with every piece of bad news funneled down from the state.

"It could get worse," Kimmel said. "I don't know if it will get better."

Zimring said if Gov. Arnold Schwarzenegger can't get the Legislature to sign off on the budget by June 30, the revised budget "won't happen," which is good news for the district. But, most people don't believe the government will miss the deadline or the opportunity to pass the budget buck.

Since the second interim report in May, which already included a $2-million decrease to district coffers, the state's budget projections have continued to plunge. By the 2010-11 school year, district officials predict they'll be operating with more than $4 million less funding.

The federally mandated 180day school year may be cut by up to a week, officials say. While teacher "furlough days" might stave off a negative budget adoption in the coming years—considered the worst case scenario—a negative certification will open the door to Los Angeles County to take over fiscal control of the district.

"The goal is to maintain fiscal solvency," Kimmel said. To that end, the district's financial team will continue to scrutinize all expenditures and explore all cost-saving measures.

"The brick wall is rapidly approaching," Moorman said.