Stock losses mean tough school cuts (by Heather Murtagh, Daily Journal)
Raising employee contributions to health care, reducing overstaffing and scaling back the seventh-period day are all part of the proposal to make $3 million to $4 million in cuts estimated to be needed in the San Mateo Union High School District.
Investment losses combined with an unknown state budget leave the district scrambling to find solutions for a problem of unknown size. In anticipation of losses, the Board of Trustees will consider a number of cuts suggested by district officials and the Budget Advisory Committee next week. Within the suggestions are hopeful ways of gaining money from the federal stimulus and increased facility use fees.
I've never been so frustrated because I don't have a target to hit,? Superintendent David Miller said in regards to the needed cuts.
A majority of the district's anticipated lost general fund revenue, $3 million, came from its investments with the county investment fund. Specifically, it was from losses caused from investments in Lehman Brothers, said Miller. We would not be making anywhere close to the cuts if it weren't for the money deposited … . We lost out of the general fund $3 million, over 2.5 percent of our reserve. If we had that now, we would not have to make those decisions,? he said.
Both the BAC and administration created a suggested list of cuts, which were previously brought before the board earlier this month. Next week, the board will need to decide where to cut.
For board President Linda Lees Dwyer, some of the easiest decisions are cuts where both groups agree such as a one-time deferred maintenance savings, freezing open positions and increasing leasing fees.
The biggest concern is reducing the seven-period day. Miller suggested reducing the offerings but not eliminating the program. A six-person committee on the topic suggested the $1.5 million expansion of courses be reduced in the coming school year. Along with the reduction, guidelines for which courses get priority when creating schedules next year will also be considered. If implemented, the district stands to save an estimated $500,000. Trustees, however, wondered if the cuts would be enough given the unknown financial problems that lie ahead. Without the state budget, these questions remain unanswered.
For Dwyer, the decision for seventh period is more than a financial one. Cutting those classes would reduce offerings for support courses, she said. We've set the bar so high. A lot of students need the extra help. The seventh-period day discussion isn't just financial. Even though we cannot afford it, it isn't just a financial decision,? she said.
Craig Childress, San Mateo High School District Teacher Association president, was confused as to how a reduced seventh-period day configuration would work. How can you offer extra programs for the seven-period day by reducing the staff who provide those programs? I don't understand how that can work. No one has showen me how it will work,? he said.
Some issues will need to be negotiated with the various faculty groups, such as raising health care contribution or department head days.
Childress had concerns about banking on income from an item yet to be negotiated. The idea could generate $900,000, according to a staff estimate.
Trustee Stephen Rogers had some interesting ideas for addressing structural budget issues going forward.
One of the more interesting ideas was using solar to decrease energy costs. The district spends more than $1.15 million per year for utilities, and that's growing 4.5 percent annually, he said. Using already approved bond money to input the panels could generate 80 percent of the utilities needed saving the district for the next 30 years. However, funding those projects would mean scaling back from already approved projects such as theaters and athletic fields. A parcel tax was also put forward.
I suggested we talk about some of these things, but it's hard to get attention on this kind of stuff,? Rogers said. We're just faced with really difficult choices.?
The board meets Thursday, Feb. 26.

– Written by Fiona