School board wrestles with $33.9 million budget, $1.5 million shortfall

While La Canada High School seniors prepared for graduation, the La Canada Unified School District’s governing board convened for a special meeting on the afternoon of June 18 to discuss serious spending cuts that could signal major changes in its educational programming.

On the table for debate was the district’s 2009-2010 budget, as well budgetary estimates for 2010-2011 through 2012-2013.

The board passed the budget as presented by a vote of four to one, with the one

dissenting voice coming from president Joel Peterson.

Stephen Hodgson, who consults for the governing board on financial matters, said with federal and state education funding projected to fall dramatically over the next five years, the outlook for the district remains grim.

“We have been doing a lot of talking…about this budget and really there is a lot more that we don’t know than we know,” Hodgson said.

Many variables in the budget remain undetermined, Hodgson said, such as how severe the state cuts to education will be. Another wild card is whether La Canada voters will approve the district’s parcel tax when the month-long mail-in vote ends June 30.

In addition, the school district may still receive federal stimulus dollars in the next fiscal year.

“We have significant challenges ahead and we will see of course what happens in the future in Sacramento and with the parcel tax campaign,” Hodgson said.

The approved budget showed revenues for the 2009-2010 will be $32.4 million while expenditures are projected to top $33.9 million, approximately a $1.5 million shortfall.

In 2010-2011, that shortfall is predicted to grow to $3.5 million. If things continue as they are now, the district will have exhausted its reserves by 2011-2012, and

it will be rendered financially insolvent, Hodgson said.

Board member Scott Tracy commended the district’s hard work and said considering the severe cuts, it had done a good job managing its finances for the 2008-2009 and 2009-2010 fiscal years. However, he called on the governing board to start dialoging now about deeper cuts in anticipation of a worsening of the situation.

“The wheels come off as you look forward,” Tracy said. “There is no more federal stimulus money. There are continued state cuts…Can we do something sooner rather than later to soften that falling of the cliff?”