Heather's article in the Daily Journal – Emergency schools cuts total $3.5M
Winter and spring sports could be cut, temporary teachers, custodians, librarians and computer lab technicians could be fired and memos might be sent only via e-mail in an effort to cut $3.5 million from the San Mateo Union High School District budget by Sept. 29.
A number of incorrect property tax projections, county tax rebates, rising special education costs and late notifications led to the district's current deficit position, said Superintendent Sam Johnson. The County Office of Education is requiring the district to create a plan to end the year with $2 million in its reserve a feat that will require the district to cut $3.5 million. The district is creating a list of suggested cuts to be reviewed and finalized by Sept. 21. The district ended up receiving $4.3 million less in property taxes than originally predicted over the last two years, said Johnson. All predictions, at the time, were that the $2.3 million lost in property taxes during the 2004-2005 school year was a fluke. It only got worse as various commercial property tax lawsuits added up and special education costs exceeded predictions. The perfect storm? of financial problems, as Associate Superintendent Liz McManus called it, began for the district in November 2005 when the district learned it would have $811,000 less property taxes than anticipated, said Johnson.
Ninety-two percent of the district's general fund comes from local property tax. The county assessor's office gives the district predictions of this incoming money in April or May. The district closes one fiscal year at the end of June. The district lost $3.1 million between November 2005 to July 2006 to tax rebates and special education costs $1.5 million of which was taken away after the close of the fiscal year. The current school year's budget must make up for this late deduction. Much of the tax rebates were given to businesses like hotels and airlines that asked for hardship reductions when profits dropped after the terrorist attacks of Sept. 11, said McManus. The lawsuits took a number of years, making the tax rebates retroactive, she said. District officials had hoped to have a year or two to get the budget back on track, however, the County Office of Education had other plans. The district, by law, must maintain a 3 percent funds reserve, in this case $2.6 million. The district would end the year with nothing if cuts were not made. The district must create a plan to have $2 million at the end of this school year, said County Superintendent Jean Holbrook. The plan must be turned in by Sept. 29. It's lower than the state required 3 percent but that's why we require a fiscal solvency plan, to explain how they're going to fully restore the 3 percent minimum,? she said.
The plan of attack: Make cuts. The district is in the process of asking teachers, parents and staff for suggested cuts. All suggestions, even ones which would not change the situation, are put on a list. McManus will cut the list down for the board, who will make final decisions on Sept. 21. More than $3.5 million in cuts will be provided to give the board members options. The list has 70 suggestions including reducing the number of temporary teachers, reducing after-school sports programs, cutting coaching stipends for winter and spring sports, increasing the number of special education students in a class and reducing security on campus. Some items require negotiations, like a salary roll back. Salaries were negotiated before the district knew cuts were required, said Johnson. Teachers and classified staff would have to agree to a cut before salaries can be rolled back. The district is considering changes like working with the College of San Mateo for extra course options rather than cut the seventh period to save nearly $400,000. Board President Marcia Cohn-Lyle offered to cut her $240 monthly stipend until things start looking up.
A budget meeting will be held 7 p.m. Thursday, Sept. 21 at the San Mateo Adult Resource Technology Center, 789 E. Poplar Ave., San Mateo.
– Written by Fiona
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