School board sees light in financial tunnel

Ask real estate agents and Chamber of Commerce business leaders and you'll find agreement that Yorba Linda's desirability and prosperity as a community is directly related to the quality of education provided at Placentia-Yorba Linda Unified School District campuses.

That's why so many city residents have been concerned over the past few years about the financial plight of the state's public school system. Simply, rebuilding aging campuses and keeping current with rapid technological changes takes significant economic investments.

Families look at the local school system when choosing to live in a community and these families purchase products and services from city businesses. They join and often serve as leaders in churches, sports and cultural groups and other local organizations.

School district voters approved two bond issues to finance new campuses and buildings and substantial refurbishment to older structures, but day-to-day operating budgets for personnel and programs have suffered setbacks for several years.

In fact, last year I noted the district issued a second “qualified certification” regarding the ability to meet financial obligations for the next two years. A qualified certification means the district is “not positive” sufficient monetary resources will exist to meet future needs.

But now, the five elected trustees at their final meeting in 2013 viewed a report stating that district officials believe “the district can meet its financial obligations” for the current school year “and two subsequent years.”

In posting the first of two state-required interim reports to county Superintendent of Schools Al Mijares, “The board understands its fiduciary responsibility to maintain fiscal solvency for the current and subsequent two fiscal years,” noted Jennifer Miller, director of fiscal services.

According to the latest projections of income and expenses, the district will dig into reserves built up during better financial times for the current school year and next year but expects to add to the banked funds two years from now.

Here are the anticipated numbers this year and next: $201.8 million in revenue and $208.2 million in expenditures, reducing reserves to $8 million in 2013-14, with $200.8 million in revenue and $202.8 million in expenditures, reducing reserves to $6.5 million in 2014-15.

But red ink is expected to disappear for 2015-16 with $206.3 million in revenue and $205.4 million in expenditures, building reserves to $7.9 million. The figures include 24,925 in average daily attendance and a boost from 182 to 185 service days starting next year.

Another plus is a one-time state allotment of $5.1 million to be spent this year and next to support implementation of Common Core standards. Funds can be used for professional development, instructional materials and technology.

The spending plan will be heard in a future meeting with approval at a subsequent session. Standards are written to be “real world” relevant. They can be viewed at corestandards.org.