New school district boss faces budget squeeze
Smart stewardship--always an essential element of the overall success enjoyed by the Placentia-Yorba Linda Unified School District--will become even more significant in future months as financial clouds continue to darken for the state’s public schools.
But wisely, school district trustees placed an experienced business hand at the helm of the 26,000-student district, with the retirement of 12-year superintendent Dennis Smith.
Doug Domene, a 26-year district employee who served as assistant superintendent for business services the past three years, knows well every line in a budget long beset by deficit financing, with expenses expected to exceed income for at least two more years.
The district has financed operations for 35 campus sites by dipping into a reserve fund built up during better times. But that approximate $20 million account will drop close to $10 million this year and another nearly $5 million next year, according to estimates.
At the same meeting Domene was named superintendent to start July 1, he offered, as head of business services, a “second interim financial reporting and certification of district financial solvency,” prepared by Director of Fiscal Services Joan Velasco.
In prior years, the report and certification was a routine item placed on the agenda each March to meet a state requirement. But this year, the report noted, the district is issuing “a qualified certification” for the second interim period, as are many other districts.
The “qualified certification” means that the district “is uncertain it can meet its financial obligations for the two subsequent years,” should a tax initiative on the November ballot fail and the state imposes a $370-per-student reduction, the report stated.
The five elected trustees were told: “Assuming no 2012-13 mid-year trigger cut is made, $11.6 million in ongoing budget reductions are needed to maintain fiscal solvency, along with an additional $7.3 million reduction in 2013-14.”
“If a trigger cut is imposed, additional reductions of $9.2 million would be needed in the 2012-13 fiscal year,” the report added.
Total district revenues this year are expected to approach $190 million, with a projection of about $185 million next year. Expenditures this year will be about $201 million, with some $202 million projected next year. The 2013-14 estimates: $189 million in and $209 million out.
And what about all of that state lottery money? The district receives $140.50 per average daily attendance each year, contrasted to a “funded base revenue limit” per average daily attendance of $5,198 this year and an estimated $5,240 next year.
A Final Note: When Yorba Linda’s Veterans Memorial was dedicated in 2009, one of the bricks installed on the Walk of Honor marked the World War II service of my aunt, Mary Emeral Drummond, as one of 1,074 Women Airforce Service Pilots.
Emmy rode in numerous Veterans’ Day parades, joined in WASP alumni events for the past 60 years and was among the flyers awarded the Congressional Gold Medal in 2010. She died March 21, a few days before her 92nd birthday.
But wisely, school district trustees placed an experienced business hand at the helm of the 26,000-student district, with the retirement of 12-year superintendent Dennis Smith.
Doug Domene, a 26-year district employee who served as assistant superintendent for business services the past three years, knows well every line in a budget long beset by deficit financing, with expenses expected to exceed income for at least two more years.
The district has financed operations for 35 campus sites by dipping into a reserve fund built up during better times. But that approximate $20 million account will drop close to $10 million this year and another nearly $5 million next year, according to estimates.
At the same meeting Domene was named superintendent to start July 1, he offered, as head of business services, a “second interim financial reporting and certification of district financial solvency,” prepared by Director of Fiscal Services Joan Velasco.
In prior years, the report and certification was a routine item placed on the agenda each March to meet a state requirement. But this year, the report noted, the district is issuing “a qualified certification” for the second interim period, as are many other districts.
The “qualified certification” means that the district “is uncertain it can meet its financial obligations for the two subsequent years,” should a tax initiative on the November ballot fail and the state imposes a $370-per-student reduction, the report stated.
The five elected trustees were told: “Assuming no 2012-13 mid-year trigger cut is made, $11.6 million in ongoing budget reductions are needed to maintain fiscal solvency, along with an additional $7.3 million reduction in 2013-14.”
“If a trigger cut is imposed, additional reductions of $9.2 million would be needed in the 2012-13 fiscal year,” the report added.
Total district revenues this year are expected to approach $190 million, with a projection of about $185 million next year. Expenditures this year will be about $201 million, with some $202 million projected next year. The 2013-14 estimates: $189 million in and $209 million out.
And what about all of that state lottery money? The district receives $140.50 per average daily attendance each year, contrasted to a “funded base revenue limit” per average daily attendance of $5,198 this year and an estimated $5,240 next year.
A Final Note: When Yorba Linda’s Veterans Memorial was dedicated in 2009, one of the bricks installed on the Walk of Honor marked the World War II service of my aunt, Mary Emeral Drummond, as one of 1,074 Women Airforce Service Pilots.
Emmy rode in numerous Veterans’ Day parades, joined in WASP alumni events for the past 60 years and was among the flyers awarded the Congressional Gold Medal in 2010. She died March 21, a few days before her 92nd birthday.
posted by Jim Drummond at 12:00 PM
<< Home