Grossmont High School District Sees ‘Soft Landing’ in Case of Midyear Cuts

The has leftover funds that could “soften the blow” if it endures additional budget cuts from the state, said the district’s deputy superintendent for business services.

At Monday night's school board meeting in El Cajon—delayed from the scheduled Sept. 8 meeting because of the countywide blackout—the governing board approved the 2010-11 unaudited actuals report, which left the district with a $21.4 million balance.

If state revenue projections fall short, up to $1.5 billion in extra spending cuts to K-12 schools will be “triggered” in the middle of the fiscal year. Tuition could rise in the UC and CSU systems, and community colleges would raise fees to $46 per unit.

The trigger was part of the $86 billion state budget Gov. Jerry Brown signed in late June—although efforts are under way to modify the trigger rules.

Scott Patterson, the deputy superintendent, told the board Monday that when it adopted the district’s 2011-12 budget in June,  it projected the district would have $19.1 million in reserves. He said the variance was caused by a reduction in contracted services, as well as health and welfare expenses.

Patterson said the district already has committed $8.6 million of the funds to budget balancing initiatives. Therefore, $15.9 million is left, after $3.1 million is added from the so-called Fund 17 Reserve.

“So we have available $15.9 million at our disposal for what I call ‘softening the blow’ or ‘the soft landing,’ as we continue to try to get our revenue and cost parts equal,” Patterson said at the district offices at Grossmont High School.

“This will be an important number as we manage through.”

Trustee Priscilla Scheiber asked if “a small chunk” of the surplus could go toward the district’s Deferred Maintenance Plan.

Earlier in the meeting, Robert Kiesling, the district's executive director for facilities management, presented a report on the plan.

Kiesling said 2.4 percent, or $4.3 million of the general fund per year, goes toward routine and preventative maintenance. When the district was fully funded, Kiesling said 3 percent, or $5.4 million of the general fund, was used for routine and preventative maintenance.

“We need the 3 percent,” Kiesling said. “So as the economy improves and the taxes improve and we start getting some money back in the school system, we want to argue for a fair amount of that money coming back into the maintenance plan.

“So the plan is to not to try and do anything now … but to try to add that back in as we get money."

Patterson, who admitted he has a “conservative nature,” said it is the board’s discretion to determine how to use the funds. Still, he cautioned trustees on using the funds before they know whether there will be additional cuts from the state.

“I would suggest that the first thing we would want to do is determine if the trigger was pulled,” he said. “That could make a significant difference in what this fiscal year looks like.”

Trustee Dick Hoy agreed. “I would be unwilling to make that kind of decision, at the very least until we see what happens with the possibility of whether they pull the trigger.”

Patterson also urged board members to consider what the structural deficit will look like in 2012-13. Staff is currently working on the 2012-13 budget.

The total budget for the 2010-11 general fund was $33.2 million, Patterson said. He noted that the 2010-11 general fund, which consisted of $25.4 million in unrestricted dollars and $7.8 million in restricted dollars, was a $10.4 million increase from the previous year.