State budget cutbacks will target local public schools

Declining enrollment seen as culprit



By Stephanie Bertholdo  bertholdo@theacorn.com

A weak state economy and a projected $8-billion shortfall in California’s 2008-09 budget could have “dire” consequences for the financial health of the Las Virgenes Unified School District, officials said during budget hearings.

LVUSD chief budget officer Karen Kimmel said the district may face midyear funding cutbacks similar to those seen by California schools in 2003 when Gov. Arnold Schwarzenegger tried to fix state budget problems by cutting school funding.

The state’s precarious financial condition has Las Virgenes school board members worried. Midyear cutbacks are a possibility, and Kimmel said the district may be unable to fund cost-of-living increases in upcoming years.

Kimmel said school expenses are on the rise, including the salaries of teachers and classified employees. Following recent negotiations, each group received a 4 percent boost.

But like many school districts in California, Las Virgenes is experiencing declining enrollment. Kimmel said the district’s student population is down by 200 this year, which will translate into a $1.2-million shortfall in revenues from the state next year.

State funding for public schools is tied to the number of students who regularly attend class, also known as Average Daily Attendance, or ADA. Kimmel said the district’s enrollment is expected to decrease by 10.8 percent over the next eight years.

Cindy Iser, school board president, said she hoped the declining enrollment could be offset with students attending LVUSD schools on out-of-district permits.

Board member Terilyn Finders suggested the district obtain ADA money for students who take online classes.

Donald Zirming, LVUSD superintendent, said many students apply for permits from the San Fernando Valley and generally want to attend Calabasas schools. Eventually the number of permitted students reaches a cap.

With salaries on the rise and enrollment declining, the budget could be maintained through a smaller reserve fund. Kimmel estimated the district’s reserve fund will be smaller by $1.3 million by the 2009-10 school year.

Assembly Bill 1200 requires school districts to carry a 3 percent reserve, but the governor suspended the requirement during the budget squeeze of 2003.

Kimmel and other school district officials have come to believe state officials will once again suspend the reserve requirement, which would allow schools to use their money in areas where the state intends to cut back.

Still, according to Zimring, “The state financial crisis could have a dire impact on the district.”

Another issue concerning the board is the possibility that the state will divert to low-income and low-performing schools the funds that it now evenly distributes to all schools. Las Virgenes is a high-achieving district and could stand to lose millions of dollars if the state adjusts the way its money is distributed.

Kimmel said she will monitor state budget developments, special education expenses and potential legal settlements as part of a strategy to tighten the district’s budgetary belt.

The amount of teaching staff that’s needed in periods of declining enrollment will also be examined as the school district examines how to boost revenues and cut costs, she said.

Board member Dave Moorman asked about early retirement programs for teachers. Director of personnel Dan Stepenosky said that as of last month, 10 teachers had accepted an early retirement plan, but that the program was not a “golden handshake” type of agreement where teachers get a bonus and other benefits if they retire early.

Kimmel assured board members in her report that she will work closely with the district personnel department to identify where “efficiencies may be gained and staff reductions realized.”

“It’s a large concern for us,” she said.

Sandi Pope, co-president of the Las Virgenes Educators
Association, the teacher’s union, suggested parent/faculty club fundraising
could play a bigger roll in case the budget crisis escalates.




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