District Reserve Funds Shield San Lorenzo Schools From State-Wide Cuts

Despite a recent state revenue forecast released by the California Legislative Analyst's Office (LAO) predicting mid-year cuts in schools across the state, the remains safe, according to the district's superintendent.

Dr. Dennis Byas said last year, SLZUSD created a conservative, three- to five-year budgeting projection. Based on that projection, the district set aside reserve funds.

Those funds will provide a cushion that will allow the district to continue funding schools at current levels once the cuts take effect, Byas says.

"SLZUSD will not need to make any additional reductions — no layoffs, no increases in class sizes, no elimination of transportation, athletics, music, or other programs for the remainder of the school year," Byas said.

The state's revised revenue forecast for 2011-2012 anticipates that California will accrue only $300 million of the $4 billion that had been assumed in the projections of the fiscal year's state budget. This means a shortfall of $3.7 billion. 

When the 2011-2012 budgetary forecast was initially created, it included provisions that would trigger mid-year spending cuts if revenues did not reach the optimistic levels predicted. With this new report, it is now clear that those revenue levels will not be reached, meaning trigger cuts are likely imminent.

The state is now waiting on the Department of Finance's (DOF) December report to determine what reductions in state spending will be necessary. If the DOF's report does not provide a budgetary forecast that is more optimistic than that released by the LAO, the California public education system will face automatic trigger cuts and a reduction in funds of up to approximately $2 billion. 

The LAO estimates that the trigger cuts will be mitigated by a Proposition 98's minimum funding guarantee, limiting cuts for K-12 education funding to $1.1 billion statewide.

According to School Services of California, these cuts will affect all levels of the state education system — from kindergarten to the University of California colleges. They will also call for reduced funding for community colleges, as well as developmental services and in-home supportive services.

While many other California school districts are likely to face reductions in programs, staff, and services, SLZUSD plans to continue operating as usual.

"At this time, we do not anticipate any midyear cuts unless something dramatic occurs," said Byas.