GUSD Takes Painful Look at 2012-13 Budget, Worries About Transitional kindergarten

The Gilroy Unified School District board received a budget update for the 2012-13 fiscal year that projects a grim $8.5 million budget deficit if Gov. Jerry Brown’s November ballot tax initiative isn’t  passed by voters.

The district learned that they could face a steep budget deficit for the 2012-13 school year in early February, only that number was projected to be .

The budget update, compiled by the district’s Director of Fiscal Services Allan Garde, said the steep budget deficit of over $8 million would happen without the approval of furlough days or class-size increases.

The district’s report outlines six scenarios of budget outcomes based on the passage or non-passage of the tax initiative, and factors in furlough days and class-size increases.

One of the best scenarios that would help get the district out of the red would entail furlough days and class-size increases for the 2012-13 fiscal year.

If the tax passes and the board approves eight furlough days—which is the same number currently in place—and increases class sizes, then the district would be looking at a budget surplus of about $3.7 million.

GUSD Trustee Rhoda Bress said supports the Brown’s tax initiative because it would limit budget impacts to the district.

"This is a critical item for us," she said. "It will have a huge impact on how we provide services to public education. Even if it passes, either way, this will not be good news, but it will make a pretty big difference if it does pass in budget impacts."

Brown’s tax initiative, The California Tax Increase Initiative, proposes to increase the state income tax levied on annual earnings over $250,000 for five years, and would impose an increase in state sales tax by a half cent for four years.

Revenue generated from the tax would be streamlined to the state’s K-12 education system and community colleges.

If the initiative passes, school districts across the state would receive flat-funding and the district would likely be looking at around $3.5 million in cuts, with no furlough days or class-size increases, district officials said.

If the tax does not pass, California school districts will see a $370 cut in Average Daily Attendance (ADA) per each student.

Bress said the board is still in the discussion phase in preparation for the 2012-13 school year.

GUSD Assistant Superintendent of Business Services Rebecca Wright said district officials will be watching closely for the Governor’s May Revise of his proposed budget, where funding for district transportation and could be in jeopardy.

“There is a lot of uncertainty about those two services,” Wright said. “I can’t hold my breath on that one.”

Since the district won't know their true budget figure for the 2012-13 school year until November, they're currently developing one based on the worst case scenario. The district is looking at ways to reduce their expenditures, and is accepting suggestions from the public. To leave a suggestion, fill out the Budget Input Form.

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