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Friday, May 22 2009 07:32 PM

Schools: More cuts a certainty

by jeff nachtigal , Californian staff writer jnachtigal@bakersfield.com

With the May 19 special election out of the way, the next financial hurdle for Kern County schools is the state June budget revision, when they learn how much less funding they will receive.

Bigger class sizes, reduced programs, seven fewer school days, and more teacher layoffs in August -- and in years ahead -- will be back on the table.

In Kern County, at least 345 teaching positions have already been cut and there likely will be more reductions this summer.

SOME SPECIFICS

The Kern High School District estimates it will receive about $15 million in federal stimulus funds this year, but will have to grapple with another $45 million in revenue cuts over the next three years.

The district will soon return to a long list of possible cuts the Board of Trustees considered months ago, including transportation, sports programs and library services.

Superintendent Don Carter recently said the district's strategy will be to not further reduce staffing in 2009-10, but warned changes will come the following year.

Most schools have already planned for cuts in the fiscal year that begins July 1, and will backfill cuts using reserve funds and federal stimulus dollars.

But the message from Michael Hulsizer, legislative affairs director for the Kern County Office of Education, is that 2010-11 will be an even bigger problem, and to save as much funding as possible to manage further cuts.

Greenfield Union School District eliminated about 40 positions two years ago, giving it a slight cushion heading into the current fiscal crisis.

Superintendent Gary Rice said it was time for a new "reduction" mode of thinking for the next three to four years, given the long-term budget problem the state faces.

He said Greenfield will begin a serious discussion about re-establishing priorities.

Ideas run the gamut, from eliminating class-size reduction and counselors to cutting psychology and support services.

Smart budget management -- "work smarter, not harder," Rice said -- can also help a district.

Greenfield rolled its middle school sports programs into a state-funded after-school program. No longer funding sports out of its general fund means the district can spend those dollars on other things.

But with less money coming in, reducing staff and increasing class sizes are almost a given.

"You don't sugarcoat things like that, you've got to put it out there and say what's coming," Rice said.

POTENTIAL AMENDMENT

One potential bright spot for education funding when the Legislature meets in June: Senate Constitutional Amendment No. 6 would lower the majority vote needed for a local parcel tax from two-thirds to 55 percent.

Local property tax votes often are used for instructional programs, hiring teachers and supporting libraries and arts programs.

CASH FLOW

As the state wrestles with cash-flow issues, so too will districts because the state has and will continue to delay scheduled apportionments, or revenue payments.

A district may be able to follow its year-long budget, but if it runs short of cash to make payroll or other payments, it faces an insolvency situation and in the worst case can be taken over by Sacramento.

Nine school districts have gone insolvent in California since 1990, but in this budget environment, several more districts may go the same way, said Joel D. Montero, the CEO of the state Fiscal Crisis and Management Assistance Team, which works with districts close to fiscal emergency.

"You can't afford to run out of cash, because if you do, it's game over, and you lose all local control over your school district," Montero said.

The long-term solution is for the state to get out of the recession. The short term is for districts to maintain cash solvency.

"Generally speaking that means laying off staff, because that's where most of the money is in a school district budget," Montero said.

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