The Budget Challenge We Face

When I joined school board four years ago my intent was to be instrumental in enhancing educational opportunities for the children of the Berryessa Union School District. While the Board has remained focused on ensuring a quality education for our children, the reality of our current economy has, and will, have an impact in our district for the next few years.

In order to help you understand the issues our district is facing here are the answers to a series of questions about our budget:

What is the magnitude of the problem?

Based on current information (assuming no further funding cuts from the state) the district is facing a shortfall of $2.7 million for the 2010-2011 school year, and an additional $5.3 million for the 2011-2012 school year, for a total shortfall of $8 million over two years.

The district must submit a budget in July 2010 that shows balance for 3 years, which means that we must address the two-year projection immediately. Our district’s total budget is just over $60 million, so the shortfall we are facing is equivalent to 7% per year. If the state of California decides to cut funding to schools this fiscal year the budget shortfall will increase.

Why has this occurred?

Our funding comes almost entirely from the state of California. The bad economy has led to plummeting income, capital gains, and property tax revenues. Education spending makes up over 40% of the state budget. Once the legislature decided that they would balance the budget without increasing any revenues, it was inevitable that education would take a sizeable cut.

While the projected $8 million district shortfall takes into account cuts the state has already made, California starts 2010 with a $20 billion deficit. As of this blog posting no further cuts have been officially proposed, but there is no indication from the state that education is safe from additional cuts.

What about the Measure W Parcel Tax?

Measure W provides $1.7 million to the Berryessa School District each year. Without this revenue the district would have had a budget deficit for 2009-2010 and an additional $3 million shortfall (for a total of $11 million) over the next two years. We thank you for your support of Measure W, without which our students would be shortchanged even more.

Why was the 2009-2010 budget balanced so easily?

The state cuts to education were significant in 2009-2010, but the American Recovery and Reinvestment Act (ARRA), also known as the federal stimulus package, provided nearly $4 million to our school district for the current year's budget. That money is the reason we were able to run the district this year without significant cuts and without staff layoffs. However, this was only one-time money and we do not know yet if there will be any additional stimulus money for the next year. In addition to the stimulus money, our district administration has done a great job freezing spending and conserving resources during the past couple years.

How will we solve this budget problem?

It will take a collective team effort to balance the budget for the next couple years. The board will rely on input from all members of our community. Please attend board meetings and budget hearings, and provide your feedback at our meetings, through this blog or by email. In the coming weeks, I will discuss possible actions the board is considering and ask that you get involved and provide feedback on the choices our district is facing.

I want you to know that as a board member and parent of a child attending a Berryessa school I am committed to doing everything I can to ensure our district maintains a strong educational foundation for our children. Yes, these are tough times, but I firmly believe that if we work together we can meet these challenges without compromising the education of our children.

Thank you for taking the time to read my blog and I look forward to hearing your thoughts and ideas.

(originally posted 1/5/2010)