Despite the lack of information, direction and decisions from the state of California regarding education funding, our local school districts are working hard to develop balanced budgets that meet the state-prescribed criteria and time lines.

Local school boards, administration and staff continue to work together to develop “plan for the worst, hope for the best” scenarios to provide the very best education for each and every student in Lake County, while remaining fiscally solvent during these difficult economic times.

A major difficulty expressed by local educators is the lack of timely information which would enable them to make informed decisions regarding education funding and budget development.

Most concerns revolve around three basic issues:

1. Continued decrease of the COLA and ongoing increases in the deficit factor.

2. Increase in the number and amount of deferrals of funding apportionments.

3. Tax extensions … “The big unknown” … yes, no, how much and when?

 

 

 

 

 

 

 

COLA and the deficit factor

Over the past few years the education dollars have been greatly impacted by lagging cost of living adjustments and an increasing deficit factor (a percentage by which an allocation of funds is reduced until the state’s economy recovers, and then the amount would theoretically be restored).

The cumulative effect of these two factors – along with a decline in student enrollment in Lake County Schools – have resulted in significantly less money per child now than we had five years ago, as reflected in the table in Figure 1. At the same time, health benefits, goods and materials, fuel and food costs continue to climb.

Deferrals

The state continues to increase the amount and number of deferrals. Deferrals don’t necessarily increase or decrease the funding for education. Deferrals simply put off a portion of payment or funds to a later date. This is similar to Wimpey’s deal, “I will gladly pay you next Tuesday for a hamburger today.”

Imagine having an annual salary of $36,000 and budgeting and planning to pay your monthly bills based on $3,000 per month. Then you are told that your monthly paycheck is being held until sometime next year. You are still responsible for your rent/mortgage, utilities, food and other monthly bills.

In an effort to pay your bills, you exhaust your savings to meet your financial obligations. Two months later you are told again that your paycheck is being “deferred” to next year. Now you need to secure a loan to meet your monthly obligations and to pay the interest fees as well.

This is the situation faced by our school districts in Lake County and across the state.

According to the Governor’s proposed “May Revise,” It is anticipated that Lake County schools will have over $14,896,205 in “deferrals” from the 2011-12 school year to the 2012-13 school year.

Recent news releases report that education can expect an additional $3 billion statewide in funding, if the proposed budget is approved.

Unfortunately, this does not mean new dollars for education. If the budget is approved as proposed, it would reduce the impact of deferrals and help hold funding levels close to last year … if, and only if, the tax extensions are agreed to by voters.

Tax extensions

Proposed tax extensions are the “big unknown” for local educators. Tax extensions are a significant piece of the proposed budget.

A balanced state budget depends on resources from existing taxes to be extended through the 2011-12 school year. This requires voter approval and cannot be counted on until the public decides “yes or no.”

If the voters turn down tax extensions, the effect on education funding will be significant, resulting in even greater reductions.

Projections related to an “all cuts budget” may result in an additional $350 per student in further reductions. Reductions of this significance will cause local boards and administrators to grapple with reductions far beyond what has been considered “the worst case scenario.”

Summary

While budget concerns are certainly a huge issue for our local school districts, we continue to maintain our focus on serving and educating our students with dedication and compassion.

We will strive to keep cuts away from the classroom and continue to investigate strategies to be more efficient and cost effective.

We continue to be grateful and appreciative of the tremendous support for education by parents, community members and service groups.

Together we will successfully and creatively provide the best possible education for each and every one of our students in Lake County.

Thank you for your continued support.

Wally Holbrook is superintendent of schools for Lake County, Calif.