On the surface, the new state budget appears to be good news for schools, having restored to education $1.7 billion that had been cut by the governor in his May budget revision.
Manhattan Beach Unified School District stands to gain $1.6 million in additional revenue from the restored cuts.
However, lawmakers deferred payment until July and district officials are wary that they won’t see a dime of it.
“It makes our ending fund balance look higher,” said MBUSD assistant superintendent of Student Services Steve Romines in an interview last week. “But the receivable isn’t a check or cash. It’s a promise of payment in the future. They put a stipulation saying ‘if the budget allows,’ which means if they can balance a budget next year.”
On Oct. 8, the state balanced a $19 billion deficit and adopted its budget 100 days late, exceeding its previous record in 2008 when it was passed 85 days late.
Romines said the new budget is based on questionable revenue sources that will not likely pan out — such as anticipated state property sales — and the drying up of others, including the cessation of temporary taxes.
He also expects mid-year budget cuts after the new governor takes over in January, and projects the state will face a $10 billion deficit next year due to federal debt, inflation and a slow economy.
The district conservatively balanced its $50 million budget last spring without knowing how much revenue it would receive from the state.
The promise of additional state funding has done little to alter that.
“Last May, I reduced the district’s budget by $7 million and I’m not changing it,” Romines said. “We’re certainly not going to add programs, but our district already adopted a balanced budget even under the most severe conditions given to us by the state. So we don’t have to rely on any gimmicks in the state budget.”
Proposition 98 — which guarantees a minimum level of school funding – was suspended in the state budget, resulting in a reduction of $4.3 billion to schools and allowing for further cuts next year, according to Romines. The suspension negates a memory clause in the proposition requiring the state pay back withheld funds when the economy improves.
“They’re basically saying ‘We’ll pay you whatever we want,’” Romines said. “The state would usually have to remember what they held and pay schools back next year, but now they don’t have to.”
Though the budget also promises $300 million for mandated cost claims – to reimburse schools for services and programs they must provide but for which they receive no funding – Romines is doubtful MBUSD will received its reimbursement. The district has not received any mandated cost reimbursements for the last eight years.
The state budget extended the use of certain restricted funds usually earmarked for specific programs — totaling $1.4 million for the district — for unrestricted use through next school year, after which they will revert back to restricted status, according to Romines.
“That amount of money equals 13 to 14 teachers,” he said. “There will be layoffs in the 2012-13 year.”
Funding available for class size reduction (CSR) may ultimately dry up, as the new budget requires that CSR penalties revert back to their prior format in the 2012-13 school year. Now, districts can lose up to, but no more than, 30 percent in class room size augmentation funding if K-3 classes increase beyond a student-teacher ratio of 24.9 to 1. When the penalties revert, districts will receive no CSR funding if they exceed that ratio.
“That’s very significant,” Romines said. “Most districts are at 24.9 already. We are at 22 or 23 to 1 right now. Next year, we will go to 24 to 1. That’s almost every district in the state. Where are all these school districts going to get money to go back to 20.1 to get the augmentation?”
The district received $1.2 million in federal stimulus dollars during the first week of October after President Obama signed a bill that gave $10 billion to schools nationwide. MBUSD will save the vast majority of the money to meet next year’s funding cliff as other revenue sources dry up.
“Next year, we’ll be okay,” Romines said. “I think the mid-year cuts [to the district] will be a million, which equals about 13 jobs. But the federal money will cover us. We have jobs money and took a wise position to see if [the federal stimulus] actually came and held onto it so we don’t have layoffs. But for the 2012 to 2013 year, it looks like we’ll be back in cut mode.”
Romines, along with other district officials and Manhattan Beach Education Foundation leaders, visited Sacramento last month to advocate on behalf of MBUSD for unrestricted funding.
“Decision-makers have pushed so far,” he said. “They’ve got to draw the line somewhere. We went up to Sacramento to explain that this line is drawn in shifting sand.” ER
