La Mesa-Spring Valley Schools Placed on List of Districts at Fiscal Risk

Local school officials are firing back at Sacramento after a new report showed that the La Mesa-Spring Valley School District has been added to a state list of districts that might have trouble meeting its financial obligations in the next three years.

“This rating is based on our projections of future income from the state of California, and Sacramento does not pay its bills on time,” said Bill Baber, a member of the La Mesa-Spring Valley school board.

The California Department of Education compiles semi-annual financial reports from 1,032 school districts, county Offices of Education and joint powers authorities, and the most recent report classified the local K-8 district as “qualified” (as opposed to “positive” or “negative”) for its finances.

“Our ‘qualified’ indicates our sense that the state will not deliver all the money they owe us,” Baber said Friday via email. “Many districts project rosy numbers to avoid confronting Sacramento with the truth. Not us. If this was a business, I would hire a collection agency to chase deadbeat Sacramento.”

“Negative” means the district will not meet its obligations during the current fiscal year and the two that follow. “Qualified” means a risk exists of being unable to pay bills.

Besides La Mesa-Spring Valley, the “qualified” list of 130 districts includes Borrego Springs Unified, Ramona Unified and San Marcos Unified.

Brian Marshall, La Mesa-Spring Valley schools superintendent, noted that these declarations are “self- reported.”

“Every school district in [the state] must complete two financial reports each year,” Marshall said Friday via email. “As part of the report, the district must project its financial status in the current and next two years. If you may not meet your obligations in either of the out years, you are reported as qualified.”

He said that with the state budget in such flux,  “we can not in good faith assure the county Office of Education or state that we will meet our obligations without more knowledge. Thus we identified ourselves as ‘qualified.’ We will, of course, do what needs to be done in the future to meet our obligations.”

Some 97 districts were on the statewide list three months ago. But a year ago, 160 districts were declared as “qualified.”

Jay Steiger, a school board candidate in 2010, is a La Mesa-area parent active in PTA and a member of the La Mesa-Spring Valley Budget Study Committee.

“This certification is the LMSV district administration’s response to several years of deep state budget cuts and ongoing budget uncertainty,” Steiger noted.  “It is certainly a sad reflection on the current status of public education in California.”

He said that despite staff and program cuts in La Mesa-Spring Valley,  “the 2011-12 and future years’ budgets are still uncertain, which places additional strain on small- to medium-size districts like LMSV.”

“While students continue to learn and teachers and staff continue to make great efforts in spite of the ongoing challenges, we collectively place our future at risk by failing to make the needed investment in schools,” he said via email. 

“The California State PTA joins with education, advocacy and business groups in calling upon the Legislature and governor to pass a budget which protects education and mixes targeted budget cuts with revenue extensions.”

At the May 17 school board meeting, David Yoshihara, assistant superintendent for business Services, presented the so-called 2010-11 Third Interim Report, with the “qualified” admission.  A motion to approve the report was made by Bob Duff and seconded by Penny Halgren. It carried by a 5-0 vote.

City News Service contributed to this report.