How will the state’s budget crisis impact IUSD?
When must IUSD make these cuts?
What would happen if the District refused to make cuts in response to the Governor’s proposal?
In March, IUSD voted to inform 250 temporary certificated employees that they will be released at the end of the 2007-08 school year. Does this mean those teachers will not return?
It seems like school districts are forced to make cuts every few years. Why is this?
Even in good years it seems there’s always a push to raise money for local schools. Why isn’t there enough money for education?
Why was the decision made to freeze school budgets?
What areas of the district will be the most affected by the freeze?
Will modernization and construction projects come to a halt during the state budget crisis?
How long do you think state cuts will continue to affect IUSD?
What can I do to help?

Q: How will the state’s budget crisis impact IUSD?
A: Falling tax revenues have produced a state budget gap of approximately $17.2 billion, prompting Governor Arnold Schwarzenegger to propose almost no cost-of-living adjustment (COLA) and a 6.5 percent reduction in categorical spending for California’s public schools.

Based on the these figures and enrollment projections, IUSD has reduced its ongoing costs by $6.145 million - primarily by adjusting staffing ratios and reducing some site allocations - and generated an additional $6.45 million in one-time savings, including $5 million secured by freezing nonessential expenditures during the last six months of the 2007-08 fiscal year.

To view IUSD's budget adjustments for 2008-09, click here.

Q: When must IUSD make these cuts?
A: IUSD was required to submit an adopted budget to the county before July 1. However, staffing allocation decisions had to be made prior to that date so that principals could work strategically and thoughtfully to develop the best possible instructional programs for 2008-09.

Further complicating matters is the state’s timeline for adopting its budget. Though the Governor and the Legislature also have until June 30 to come up with a spending plan, they rarely meet this deadline. In fact, many experts are predicting the state won’t produce a final budget until August or September at the earliest. As a result, school districts were legally required to plan based on worst-case funding scenarios.

Q: What would happen if the District refused to make cuts in response to the Governor’s proposal?
A: Both the county and the state oversee fiscal matters involving school districts. Those districts that fail to produce a balanced budget risk a number of escalating consequences, including intervention by the state.

Ensuring fiscal integrity has always been a top priority for the Irvine Unified School District, and the importance of this tenet cannot be over overstated. Quite simply, IUSD's ability to manage funds in the most efficient and responsible manner is what enables this district to do all that it does on behalf of students.

Q: In March, IUSD voted to inform 250 temporary certificated employees that they will be released at the end of the 2007-08 school year. Does this mean those teachers will not return?
A: No. That action in no way represented a final decision regarding staffing allocations for 2008-09. Rather, the move allowed for staffing flexibility in the face of potentially deep state cuts, and an overwhelming majority of temporary teachers have already been rehired.

The release of teachers on temporary contracts is a yearly practice in IUSD, as it is in most of the state’s districts. This year, enrollment figures and staff retirements will play a larger role in determining the percentage of temporary teachers who will be rehired for 2008-09.

Q: It seems like school districts are forced to make cuts every few years. Why is this?
A: Essentially, most school funding is tied to the state budget, which is subject to the fluctuations of the state economy. California’s revenue has gone up and down in recent years, and school districts have been brought along for the ride.

Q: Even in good years it seems there’s always a push to raise money for local schools. Why isn’t there enough money for education?
Many blame Proposition 13, which in 1978 rolled back property taxes and restructured future tax increases. Up until this initiative, our state operated with a budget surplus, and about 60 percent of K-12 funding came from property taxes, compared to about 21 percent today.

But it was another seismic shift that impacted districts in more affluent areas. In 1976, the California Supreme Court ruled in the case of Serrano v. Priest that property taxes should not stay local. Instead, the court decided that these dollars should be sent up to Sacramento and redistributed based on student population.

And yet, that distribution is not equal. To this day, some school districts receive fewer per-pupil dollars based on formulas that factored in the estimated value of local properties at the time of Proposition 13. Because IUSD was mostly agricultural back then, we were benchmarked at a lower rate based on the value of the land. These days, it’s hard to find land more expensive than in Irvine. And yet, we are considered by definition a “low wealth” district based on these antiquated formulas. Though we’ve made some gains in equalization over the years, we remain among the lower funded districts.

Q: Why was the decision made to freeze school budgets?
A: The budget freeze was implemented in January following the Governor’s declaration of a fiscal crisis. Our Business Services staff recognized that it was critical to capture savings in order to ensure a softer landing in 2008-09.

That move proved to be a successful one. By the end of June, IUSD had saved approximately $5 million to blunt the impact of state reductions. However, it’s important to remember that this is one-time money, meaning it can only help bridge the gap for one year. Most experts agree the state budget crisis will continue through at least 2009-10, so it’s critical to plan for that reality.

Q: What areas of the district will be the most affected by the freeze?
A: When weathering any type of fiscal crisis, the goal was always to keep cuts as far away from the classroom as possible. So expenditures essential to classroom instruction, safety, contract compliance and operational necessity were not affected by the freeze.

Vacant position requests were reviewed on a case-by-case basis. Equipment purchases, supplies and expenses related to travel or workshops were the areas most impacted by the freeze.

Q: Will modernization and construction projects come to a halt during the state budget crisis?
A: Fortunately, no. Even as the state grapples with this year’s budget, you may see some new and ongoing construction projects throughout our district. It’s important to remember that the money for capital projects must legally be kept separate from the general fund budget, which pays for teachers, books and supplies. According to the state’s very complex financing rules, funds obtained for facilities projects must be spent on facilities, whether they come from the state or from other sources.

Despite the state’s financial crisis, IUSD will continue to apply for these dollars, which will be spent effectively and responsibly to improve our schools.

Q: How long do you think state cuts will continue to affect IUSD?
A: IUSD is likely to be impacted in 2008-09 and 2009-10 unless the state’s revenues rebound quicker than anticipated.

Q: What can I do to help?
A: The state’s financial outlook may look bleak, but there’s still much you can do to help. For starters, you can attend Board of Education meetings, strike up conversations with fellow community members and
offer input on the issues that matter to you. If you believe the state should protect education funding for
2008-09 and beyond, contact your local Legislators and let them know how you feel. (For more information, check out IUSD’s Budget Watch page.)

Above all, there is no better time to support the Irvine Public Schools Foundation, which raises money to enhance our schools and operates many of IUSD’s outstanding programs.