Budget proposal presented to CVSD board

After months of discussing budget shortfalls, there were few surprises when the proposed 2008-2009 budget was presented to the Central Valley School District board of directors on Monday.

There seems to be a partial reversal in the number of teachers, however. This spring the district announced layoffs for classified staff and that 19 retiring teachers would not be replaced. The proposed budget calls for 842.7 certificated staff for the coming school year, compared with 850 last year.

The difference can be explained by increased funding in the federal Title I program and the state Learning Assistance Program, said Jan Hutton, executive director of finance. “We had an increase in funding in those programs and that offsets some of the reductions the board approved,” she said. The money for those programs is limited in what areas it can be used.

Overall the budget calls for $111.43 million in total expenditures and $111.73 million in revenues while maintaining a 4 percent reserve. District staff is projecting flat enrollment, with no change in the 11,640 students who closed out last school year. “Enrollment is really the cornerstone of our budget,” Hutton said. “We wanted to be conservative.”

Board members expressed concern about the district’s daycare program, which has an $117,523 subsidy paid by the district. They debated the merits of offering the service to the community when the district is trying to trim expenses. “What we do is available in the private sector,” said board President Tom Dingus.

The main reason the district is having budget trouble is the 4.4 percent cost-of-living increase passed by the Legislature, plus increases in retirement costs and health care costs. The annual cost-of-living increase is based on the consumer price index in the Seattle area. So far this year the CPI is up 4.56 percent, higher than this time last year. That paints a bleak picture for the 2009-2010 budget. “We need to look at what’s in the future for us,” Hutton said. “We very well could be looking at a COLA in the 5 percent area.”

The board also discussed keeping an eye on the food and transportation budgets, which have grown to deal with higher prices. The food services budget is $4.2 million with a $292,260 subsidy paid by the district, and transportation has a $4.4 million budget and a $2.2 million subsidy. “We know there are probably future budget cuts,” Dingus said.

Board member Debra Long said the problem is really unfunded mandates handed down by the Legislature. The state only pays for a five-period day at the high school level and major items like transportation and special education are not fully funded. “Our funding formula has got to change,” she said.

Board member Cindy McMullen said she can see a day coming soon when the district will have to charge for previously free services. “We are going to have to look at what our true mission is,” she said. “We are going to have to look at what we offer and focus on it.”

There will be a public hearing on the budget at the Aug. 25 board meeting. The board will also vote on the budget that evening.