Sequestration affects local school district

That symbol of government gridlock known as the federal budget sequestration will have a decided impact on more than 25,000 students in the Placentia-Yorba Linda Unified School District this year and possibly for several years into the future.

The latest word from Superintendent Doug Domene is that the district expects a $620,771 revenue loss for the upcoming 2013-14 fiscal year starting July 1. The lost federal income was estimated at $581,000 just two months ago.

The expected loss of operating cash is a bit more than 5 percent of $10 million-plus in federal revenues that contribute to an annual budget in the neighborhood of $190 million for 2013-14.

“These federal dollars are used in meeting the needs of English learners, special education students and … at-risk students in need of academic or social-emotional intervention,” the superintendent stated.

“These funds are also used for on-going staff development for our teachers and support staff,” Domene added. The district has about 2,600 full-time employees working at 34 campus sites.

The exact dollar loss won't be known until federal entitlements are allocated in a December and January timeframe, according to Domene, who stated that the cuts “could be ongoing.”

Nationwide, sequester cuts total $85.4 billion for 2013, with similar reductions 2014 to 2021.

Domene also stated, “It has been and will continue to be our goal to reduce services or programs versus eliminating them,” including impacts on allocations for five Title 1 sites.

The specter of sequester cuts compounds an already tight financial situation, based on a report prepared by Jayne Christakos, assistant superintendent for business services, and presented to the district's five elected trustees at a recent meeting.

According to Christakos, the district will need to implement $12.8 million in ongoing budget reductions in 2013-14 and an added $2 million in 2014-15 “to maintain fiscal solvency after making staff adjustments for declining enrollment.”

Due to the amount of reductions needed and still incomplete negotiations with employees about salaries, benefits and working conditions, the district has issued a second “qualified certification” regarding the ability to meet financial obligations for the next two years.

State law requires districts to submit two interim reports to the county Superintendent of Schools each year indicating whether or not districts can meet their financial obligations. Since the district has now issued two “qualified” certifications, a third report is due in June.

Despite financial clouds, Domene commented: “We are proud of our staff and community for the continued support in these challenging times. We are committed to meeting the needs of the whole child and remaining focused on preparing them for the future.”

He added, “Together we have made it through these difficult years, and I am confident we will work together to address the on-going reductions with a continued focus on student learning.”

Next year's budget will be presented at the June 18 trustee meeting.