School district to spend reserves from past years
“Sadly necessary” and “sensibly prudent” are apt descriptions for actions taken on the 2011-12 operating budget and teacher contract by Placentia-Yorba Linda school trustees.
Another year of expenditures exceeding income--with the deficit eliminated by spending funds saved from more plush times--is a sad but necessary fact-of-life for stakeholders in the local school district this fiscal year, with a similar situation is projected for 2012-13.
The deficit would have been much larger without significant salary and benefit reductions for the district’s teachers and administrators. The five elected trustees also will take a salary cut “equal to the percent taken through furlough days” by the employee groups.
But sensibly prudent are contract provisions that would double the number of furlough days and revisit wage and benefit levels if income changes due to more cuts in funding that might occur if the state’s rosy revenue projections aren’t met by year’s end.
Currently, expected revenue for 2011-12 stands at $185.4 million with $193.4 million in planned expenses. Employee salaries and benefits make up 88.5 percent of expenditures.
Even with spending some of the savings from prior years, the district anticipates ending with “available reserves” totaling nearly $8.8 million or 4.5 percent, still above the state “standard minimum reserve” of 3 percent.
Employee give-backs include $3.1 million in salaries and benefits. Some of the cash saved comes from four furlough days and a delay of “step” increases on the teachers’ salary schedule until next May. The step increases will not be paid retroactively.
Teachers earn more pay for each year worked up to a maximum of 13 years, after which increases accrue on four-year intervals to a 30-year maximum. “Column” raises earned for additional education will not be curtailed.
Teacher furlough days are Sept.2 and June 18, and teacher/student furlough days Nov. 23 and March 16. Up to four more days might be added, if the base revenue limit funded by the state budget falls below $5,221 per average daily attendance.
Also, teacher wages and benefits could be refigured if base revenue funds are less than $4,891 or more than $5,221 per average daily attendance.
All management employees will share the furlough pain, including the four assistant superintendents and Superintendent Dennis Smith, who’ll miss five days of pay. The trustee trim cuts $195 from each member’s $9,000 annual stipend.
Projected enrollment for 2011-12 on all district campuses is 25,613 or an average daily attendance of 24,843, down from 24,891 in 2010-11 and 25,367 in 2006-07.
Breakdown for the 25,613 number: 12,183 in K-6; 4,948 in 7-8; 8,426 in 9-12; and 56 in George Key special education. High school enrollment: 2,463 Valencia, 1,999 El Dorado, 1,861 Esperanza, 1,823 Yorba Linda and 280 El Camino.
Interestingly, lottery income accounts for less than two percent of the district’s budget, $3.4 million or $128 per pupil. Officials say lottery dollars are “not a stable source of income,” since receipts have varied from $77 per pupil in 1991-92 to $180 in 1988-89.
Projections for the 2012-13 fiscal year: income $189.2 million, expenses $193.3 million and nearly $6 million in reserves, a little over 3 percent. Operating budget figures do not include Measures A and Y bond money spent on campus improvements.
Another year of expenditures exceeding income--with the deficit eliminated by spending funds saved from more plush times--is a sad but necessary fact-of-life for stakeholders in the local school district this fiscal year, with a similar situation is projected for 2012-13.
The deficit would have been much larger without significant salary and benefit reductions for the district’s teachers and administrators. The five elected trustees also will take a salary cut “equal to the percent taken through furlough days” by the employee groups.
But sensibly prudent are contract provisions that would double the number of furlough days and revisit wage and benefit levels if income changes due to more cuts in funding that might occur if the state’s rosy revenue projections aren’t met by year’s end.
Currently, expected revenue for 2011-12 stands at $185.4 million with $193.4 million in planned expenses. Employee salaries and benefits make up 88.5 percent of expenditures.
Even with spending some of the savings from prior years, the district anticipates ending with “available reserves” totaling nearly $8.8 million or 4.5 percent, still above the state “standard minimum reserve” of 3 percent.
Employee give-backs include $3.1 million in salaries and benefits. Some of the cash saved comes from four furlough days and a delay of “step” increases on the teachers’ salary schedule until next May. The step increases will not be paid retroactively.
Teachers earn more pay for each year worked up to a maximum of 13 years, after which increases accrue on four-year intervals to a 30-year maximum. “Column” raises earned for additional education will not be curtailed.
Teacher furlough days are Sept.2 and June 18, and teacher/student furlough days Nov. 23 and March 16. Up to four more days might be added, if the base revenue limit funded by the state budget falls below $5,221 per average daily attendance.
Also, teacher wages and benefits could be refigured if base revenue funds are less than $4,891 or more than $5,221 per average daily attendance.
All management employees will share the furlough pain, including the four assistant superintendents and Superintendent Dennis Smith, who’ll miss five days of pay. The trustee trim cuts $195 from each member’s $9,000 annual stipend.
Projected enrollment for 2011-12 on all district campuses is 25,613 or an average daily attendance of 24,843, down from 24,891 in 2010-11 and 25,367 in 2006-07.
Breakdown for the 25,613 number: 12,183 in K-6; 4,948 in 7-8; 8,426 in 9-12; and 56 in George Key special education. High school enrollment: 2,463 Valencia, 1,999 El Dorado, 1,861 Esperanza, 1,823 Yorba Linda and 280 El Camino.
Interestingly, lottery income accounts for less than two percent of the district’s budget, $3.4 million or $128 per pupil. Officials say lottery dollars are “not a stable source of income,” since receipts have varied from $77 per pupil in 1991-92 to $180 in 1988-89.
Projections for the 2012-13 fiscal year: income $189.2 million, expenses $193.3 million and nearly $6 million in reserves, a little over 3 percent. Operating budget figures do not include Measures A and Y bond money spent on campus improvements.
posted by Jim Drummond at 12:00 PM
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