Local schools face more budget troubles
One key factor in the growth of this once-sleepy hamlet into a desirable suburban community has been the local school system.
Successive superintendents, forward-thinking boards of education and committed staff created an environment that drew thousands of families to Yorba Linda to take advantage of high-quality schools.
Even empty-nesters gained from school excellence, since during boom times property values were high for homes Realtors could advertise as “located in the award-winning Placentia-Yorba Linda school district”--often omitting “Placentia” from the name.
But now, in a troubled economy, when new taxes or just tax extensions are perceived as an anathema to struggling households, the district’s five elected trustees face formidable financial problems as they chart educational choices for the next few years.
In a PYLUSD website statement, Superintendent Dennis Smith outlined the dilemma: without voter approval of specified tax extensions on a June ballot, the district must cut $15.5 million from the upcoming budget, more than double the amount already planned.
Reductions for the 2011-12 school year would be on top of some $30 million sliced from budgets during the previous five years. In fact, the district expects to spend more money this year than it receives in revenue, relying on reserves accumulated during better times.
According to a dauntingly titled “Second Interim Financial Reporting and Certification of District Financial Solvency” prepared to meet a March 15 deadline, total expenditures are anticipated to be just over $206 million on income approaching $196 million for 2010-11.
To meet the deficit, the district expects to spend down the reserve fund to $14.6 million from $20.1 million, after other transfers, for a new reserve total of 6.8 percent of budget.
That reserve is projected to drop to 3.12 percent of budget, or $5.8 million, at the end of the 2011-12 fiscal year, based on an expected $177.6 million revenue stream and, after a $15.5 million trim, an expected $188.5 million in expenditures.
By contrast, the city maintains an “available for use” reserve of $21.6 million, about 81 percent of $26.6 million in operating expenditures, much higher than comparable cities.
Of course, school budget reductions necessitate a close look at personnel costs, since employee salaries and benefits total better than 83 percent of expenses--about $171.5 million of this year’s expected $206 million in expenses.
That’s why the district issued layoff notices for 37 certificated positions: five counselors, two psychologists, one resource specialist, 22 elementary and seven secondary, the latter including two each in English, PE and social studies and one in music.
These annual pink slip rituals often rile public school critics, since many are rescinded before the next school year. But schools must plan for a “worst-case” scenario because state law mandates layoff notification well before income is known.
Also involved is the district’s slight decline in enrollment each year. The average daily attendance for 2010-11 is 25,106 with 2011-12 ADA projected to drop to 24,930, 2012-13 to 24,836 and 2013-14 to 24,693.
While building and expanding successful programs in a growing economy requires insight and judgment, sustaining excellence in tough times will be a greater test for school officials.
Successive superintendents, forward-thinking boards of education and committed staff created an environment that drew thousands of families to Yorba Linda to take advantage of high-quality schools.
Even empty-nesters gained from school excellence, since during boom times property values were high for homes Realtors could advertise as “located in the award-winning Placentia-Yorba Linda school district”--often omitting “Placentia” from the name.
But now, in a troubled economy, when new taxes or just tax extensions are perceived as an anathema to struggling households, the district’s five elected trustees face formidable financial problems as they chart educational choices for the next few years.
In a PYLUSD website statement, Superintendent Dennis Smith outlined the dilemma: without voter approval of specified tax extensions on a June ballot, the district must cut $15.5 million from the upcoming budget, more than double the amount already planned.
Reductions for the 2011-12 school year would be on top of some $30 million sliced from budgets during the previous five years. In fact, the district expects to spend more money this year than it receives in revenue, relying on reserves accumulated during better times.
According to a dauntingly titled “Second Interim Financial Reporting and Certification of District Financial Solvency” prepared to meet a March 15 deadline, total expenditures are anticipated to be just over $206 million on income approaching $196 million for 2010-11.
To meet the deficit, the district expects to spend down the reserve fund to $14.6 million from $20.1 million, after other transfers, for a new reserve total of 6.8 percent of budget.
That reserve is projected to drop to 3.12 percent of budget, or $5.8 million, at the end of the 2011-12 fiscal year, based on an expected $177.6 million revenue stream and, after a $15.5 million trim, an expected $188.5 million in expenditures.
By contrast, the city maintains an “available for use” reserve of $21.6 million, about 81 percent of $26.6 million in operating expenditures, much higher than comparable cities.
Of course, school budget reductions necessitate a close look at personnel costs, since employee salaries and benefits total better than 83 percent of expenses--about $171.5 million of this year’s expected $206 million in expenses.
That’s why the district issued layoff notices for 37 certificated positions: five counselors, two psychologists, one resource specialist, 22 elementary and seven secondary, the latter including two each in English, PE and social studies and one in music.
These annual pink slip rituals often rile public school critics, since many are rescinded before the next school year. But schools must plan for a “worst-case” scenario because state law mandates layoff notification well before income is known.
Also involved is the district’s slight decline in enrollment each year. The average daily attendance for 2010-11 is 25,106 with 2011-12 ADA projected to drop to 24,930, 2012-13 to 24,836 and 2013-14 to 24,693.
While building and expanding successful programs in a growing economy requires insight and judgment, sustaining excellence in tough times will be a greater test for school officials.
posted by Jim Drummond at 12:00 PM
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