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Board adopts a budget for 2009-10
On June 23, the IUSD Board of Education reluctantly voted to approve two more phases of budget adjustments worth $9.3 million before adopting a spending plan for the fiscal year that begins July 1. The completed 2009-10 budget, to be submitted to the Orange County Department of Education by June 30, outlines $214.1 million worth of expenditures – both restricted and unrestricted – against $201.8 million worth of total revenue. The difference, approximately $12.3 million, will be offset by onetime carryover funds. IUSD was able to present a balanced budget following three phases of reductions totaling $18.3 million. In addition, the district used nearly $7.8 million in onetime federal stimulus funds to help offset the precipitous drop in state revenue. *** In April, the Board approved a first phase of reductions – approximately $9 million in onetime and ongoing adjustments – in an effort to remedy the projected deficit brought on by California’s fiscal crisis. In the weeks and months that followed, however, the state’s tax revenues continued to plummet, a slate of ballot propositions crafted to generate state funding was rejected by voters and California's deficit grew to approximately $24 billion. As a result, IUSD was forced to identify another $2.2 million in reductions. (These cuts, referred to collectively as Phase II, were formally approved on June 23, along with the Phase III reductions.) More bad news came in June, as pressure began mounting to further reduce the unrestricted budgets for districts funded under the Basic Aid model, including Irvine. Anticipating harsher cuts, a coalition of Basic Aid districts took a proactive approach and submitted their own “Fair Share” proposal. Under this plan, IUSD was compelled to cut an additional $7.1 million – with just days to go before a budget was due. The list of Phase III reductions approved on June 23 includes changes in class sizes for grades one, two, three and nine; reduced spending on art, music and science; the elimination of adult education; and the deferral of textbook adoptions. In addition, some onetime dollars that were set aside to cover retiree benefit liabilities will be used to cover a portion of the shortfall. (To access the complete list of IUSD's phased budget adjustments, click here.) Embedded in the 2009-10 budget is a 3 percent reserve for economic uncertainties as mandated by the state Education Code. However, the district is unable to project balanced budgets for the two subsequent years and will therefore be required to explore additional expenditure reductions and/or revenue enhancements. Irvine and other school districts in California are required to submit their annual budgets on or before June 30. While the state also shares this deadline for budget adoption, legislative leaders rarely meet it, forcing local school districts to make important financial decisions based on the governor’s proposals from January and May. Once the state officially adopts its spending plan in the summer or fall, IUSD will have 45 days to make any necessary adjustments. For more information on the state crisis and its impact on IUSD, please read the latest issue of Budget Notebook.
How to advocate for schoolsWrite a letter to the Governor insisting he not penalize our students for the state’s budget woes. Contact your local Assembly member or Senator to urge the protection of education funding. Write a letter to the editor of your favorite newspaper opposing cuts to education.
Support the Irvine Public Schools Foundation, which raises money for IUSD and supports many of our most innovative programs. Get involved through the Irvine Unified Council PTA, which advocates on behalf of our schools. |
