Closing the Budget Gap for Davis Schools … Again

On October 29, 2009 the Davis Joint Unified School District (DJUSD) Board of Education received Superintendent James Hammond’s preliminary plan for addressing a $3.5 million budget deficit in 2010-11.  Under this plan, closing the gap involves a combination of employee concessions, program reductions, reallocation of previously restricted categorical funds, and spending down reserves. If adopted by the Board, the plan would result in a 5.5% reduction in workforce taking affect on July 1, 2010.

Erosion of State Funding for Public Schools – How Much Has Been Cut?

Since 2007-08, eroding state revenues have caused Governor Schwarzenegger and legislators to reduce school funding by 11.3%.  California school districts started the 2009-10 school year with, on average, $850 less per pupil than they had at the beginning of 2008-09.  Soberingly, even prior to these cuts, California ranked below the national average in per pupil spending.

Community Efforts Soften the Blow

More than once, the Davis community has attempted to protect students from the full impact of funding reductions.  The Spring 2008 “Save Our Schools” fundraising effort spearheaded by the Davis Schools Foundation raised $1.5 million, or about $176 in one-time funding per student. 

In November 2008, voters provided a more stable, long-term funding source when they approved Measure W with 75.7% support. This $120 tax on each parcel of residential property began generating $288 per student on July 1, 2009.  The measure lasts for three years and preserves programs identified in the ballot language.  

The Federal Government Steps In to Help

In 2008-09 and 2009-10, the district received federal stimulus funds through the American Recovery and Reinvestment Act (ARRA).  Some of this money was targeted to serve low socio-economic and special needs children; the remainder was used to avoid deeper cuts in the 2009-10 budget year.  However, as the federal government granted these one-time  funds, the state government deepened the ongoing cut to their share of school funding.

Budget Reductions Made in the 2009-10 Fiscal Year

Despite help from the community and from federal stimulus funds, program reductions were required to balance the 2009-10 budget.  As the vast majority (85%) of the district’s expenses go to salary and benefits, workforce reduction could not be avoided.  In March 2009, the Board of Education voted to eliminate $3 million in expenses for the 2009-2010 year, including a reduction of 22 teaching and 15 supporting full-time equivalent positions.  

Late last summer, resignations, retirements and leaves of absence allowed some laid-off teachers to be called back, but the 37 positions remained eliminated.  As a result, class sizes at all grades have increased, fewer counselors and psychologists are available to serve students, custodial and grounds maintenance services are reduced, and secretarial and administrative services are trimmed.  Fewer adults are present on Davis campuses to support the same number of students.  To put this into perspective, consider that in 2005–06 California’s pupil-teacher ratio already ranked 49th in the nation.

Here We Go Again

Federal stimulus funds will be depleted at the end of 2009-10 and the district must close the budget gap left behind.  The October Budget Plan asks employees to consider $1 million in salary concessions.  This equates to about a 2.5% reduction in compensation. 

In addition, the plan further cuts programs and increases class size, eliminating another 41.2 full-time equivalent positions.  This results in a savings of $2.5 million.  Should the district be unable to negotiate concessions with employees, an additional $1 million in program reductions and eliminated positions will need to be identified.

History shows that state and district budget processes are fluid and circumstances change.  The Legislative Analyst’s Office recently identified a $20.7 billion state budget deficit for the next two fiscal years.  The Governor has acknowledged additional budget cuts must be made.

Stay Informed 

The DJUSD Board of Education will receive an update and approve the first interim budget report this Thursday.  The agenda and back-up documentation is available online and the meeting is videostreamed live and in replay at djusd.tv.

For current information, budget documents, answers to frequently asked questions and an opportunity to submit your own queries, visit the DJUSD website.

Graphic courtesy of the California School Boards Association.