Budget Questions and Answers

While we wish that we could post every great question that was asked at the Town Hall Meetings and Coffee Chats, time and resources do not permit this.  However, here is a representative list of the questions that were most asked at these events.

Questions
1)  How does EUSD governmental and local revenue contribute to the budget?
2)  Is the EUSD budget available for the public to see?
3)  Beyond Parent funding, what other options are being looked at to raise funds or supplement core offerings? Are any public/private options being considered?
4)  What is the timeline for replacing Superintendent?
5)  Why aren’t we receiving promised deferral money from years prior?
6)  Will there be changes to my child's class size next year? What can we do to avoid this?
7)  How do our class sizes compare with other K-8 districts?
8)  What does recent education research tell us about an upper threshold for class sizes? Are there different thresholds for different age ranges?
9)  I hear a lot of buzz about the district trying to attract new students…will new students coming into the district cause our class sizes to increase? How will new student enrollment help the budget for the future? How much do we receive for each new child?
10)  Why do some school sites have larger classes?
11)  Why does the district have reserves? How are they spending them?
12)  At the current rate, how quickly will the district burn through their reserves and where will that leave us as a district?
13)  AB1200-Bankrupt Districts
 
Answers
1)  Q How does EUSD governmental and local revenue contribute to the budget?
A

SchoolCenter PictureEUSD get its funding revenue from 13.96% state (transportation, mandated costs, lottery, categoricals, economic impact aide, etc.), 5.68% Federal, 7.19% local (Special Ed, bus fees, interest, facility use, etc.) and 73.17% is unknown until after the June election. The 73.17% is "revenue limit" of which about ½ is property taxes. Technically, EUSD should receive 35% of the revenue limit in property taxes prior to school ending, however the state historically adjusts the property tax distributions. EUSD therefore won't know when promised money will be received until the State budget is passed; hopefully in June. Since EUSD cannot count on this money, and the school board is tied to specific dates to notice employees and pass their budget, they must do so in the absence of firm revenue numbers.
2)  Q Is the EUSD budget available for the public to see?
A
Yes. In fact, the district has worked very hard over the last couple of years to ensure the public has access to key documents. All of the board agendas, meeting minutes and highlights, back up materials, adopted budget, annual audit and interim budget reports are available to the public under the School Board section on the district website. Also, all contracts brought to the Board are archived on the website, as they were attached to previous Board agendas.
3)  Q Beyond Parent funding, what other options are being looked at to raise funds or supplement core offerings? Are any public/private options being considered?
A
EUSD receives facility lease income, and is always on the lookout for supplemental funding grants from sources such as the California Department of Education and local corporations. Due to the decrease in district staffing levels, the district relies heavily on the Foundation (ESF) to solicit community partners and seek additional funding opportunities. ESF has established relationships with programs such as Eureka Scrip and are currently looking into other programs such as Groupon where they receive a percentage of sales.
4)  Q What is the timeline for replacing Superintendent?
A
At the March board meeting, Rick Schrichfield was appointed interim Superintendent through June, 2011. With steep declining enrollment and severe budget cuts, the Board wants to leave all options open regarding staffing decisions while fast tracking a process to review educational program offerings and facilities design that will help identify future staffing needs.
5)  Q Why aren’t we receiving promised deferral money from years prior?
A
The district is receiving previous deferral funds but the level, size and timing delay of deferrals continues to increase. The State is experiencing severe cash flow issues, and continues to use deferrals as a means to close the state budget gap, forcing schools to use reserve or borrow money. A good example of this would be putting money in a left pocket, and then taking more money out of the right pocket. Thus, the deferrals that EUSD receives do not make up the gap in funding as the state continues to add larger deferrals each year.
6)  Q Will there be changes to my child's class size next year? What can we do to avoid this?
A
Possibly. The board voted on March 8th to temporarily raise class sizes in grade K-3 from 21.5 to 23.5 until the May board meeting when they will know more about the success of the ESF fundraising efforts, enrollment, and the state budget. To avoid this, the board is encouraging parents to donate to the ESF Annual giving campaign whose funds can be used to offset these funding gaps if they are able to raise enough money.
7)  Q How do our class sizes compare with other K-8 districts?
A
EUSD class sizes are consistently lower than all surrounding K-8 districts. Even with the board’s recent decision to temporarily raise class sizes in K-3 from 21.5 to 23.5, EUSD’s classes remain the lowest in the region. The board will revisit class sizes at its May meeting before legal requirements to complete layoff notices for next year. EUSD current class sizes are:
K-3=21.5
4-6=28.8
7-8=30.5
8)  Q What does recent education research tell us about an upper threshold for class sizes? Are there different thresholds for different age ranges?
A

Research shows that there are numerous variables that affect student achievement. Class size is only one of them. There is agreement that the single most important factor affecting student achievement is the quality and effectiveness of the teacher. Students are much better off having a high quality, engaging teacher in a large class then a less effective teacher in a small class. Staff Development ensures that this is the case. EUSD is proud of the fact that they have not cut staff development days and still offer, with support from ESF, staff professional development during the summer. This training helps keep EUSD teachers on the cutting edge of education and of the highest caliber. Here are two articles that discuss this: GreatSchools.org and Time Magazine.

9)  Q I hear a lot of buzz about the district trying to attract new students…will new students coming into the district cause our class sizes to increase? How will new student enrollment help the budget for the future? How much do we receive for each new child?
A
New students coming into the district do not affect class size, but rather keep current teachers employed and schools open both short term, and long term as they move through the grades. These students currently bring in approximately $4,700 per ADA per year, the same amount as resident students.
10)  Q Why do some school sites have larger classes?
A
All schools on average have a class size of 21.5. Variation to classes only occur when enrollment exceeds projections. When EUSD schools are fortunate enough to have more kids come through the door than expected, then class sizes may need a bit of adjustment.
11)  Q Why does the district have reserves? How are they spending them?
A
It helps them pay their bills! In the last year alone EUSD used over $2 million of their reserve money to pay for things like classroom supplies and teacher salaries. Since the district will not receive a large percentage of state funding until next year due to deferrals, (if the state can find the money to pay those deferrals), the district uses reserves to pay bills and payroll and keep the district thriving, while waiting for the state payments and property taxes. Without those reserves, EUSD would look like many districts in the region that have had to reduce the school year, implement furlough days, close libraries and increase their class sizes.
12)  Q At the current rate, how quickly will the district burn through their reserves and where will that leave us as a district?
A
The district projects budget reductions based upon a 12% reserve target. If the necessary reductions are not made, the district would easily use the reserve within a year or two at the current rate of deficit spending. The current 1% reserve required by the state would not pay for even one month of payroll while waiting for state deferrals. Districts who borrow for cash flow must be able to show that they have the ability to pay the funds back within a year. With declining enrollment and budget shortfalls, this could prove difficult.
13)  Q AB1200-Bankrupt Districts
A
AB1200 spells out the procedures by which a County Office of Education (COE) monitors, assists, warns, or intervenes in the fiscal operation of a school district. If a district continues to deficit spend, the COE may intervene to help balance the budget. If a district can no longer show the ability to pay the bills for the current year, it becomes in jeopardy of the state taking over fiscal operations where very painful and drastic budget reductions would most likely take place with little local input.

Districts on the watch list or under control of the COE: http://www.cde.ca.gov/fg/fi/ir/first1011.asp
The importance of a balanced budget:
http://www.sacbee.com/2011/03/23/3496619/all-major-school-districts-in.html#storylink=omni_popular