Even with a budget deadline just days away and millions of
dollars in future cuts looming for San Benito County’s largest
school district, County Superintendent of Schools Tim Foley is
sleeping better at night because he’s confident that Hollister
School District’s budget is on the road to financial solvency.
Hollister – Even with a budget deadline just days away and millions of dollars in future cuts looming for San Benito County’s largest school district, County Superintendent of Schools Tim Foley is sleeping better at night because he’s confident that Hollister School District’s budget is on the road to financial solvency.
Hollister School District, which will be operating at a $2.9 million deficit by 2008 if expense are not curtailed, is scheduled to review its first quarter interim financial report next Tuesday and submit a plan to balance its budget to the County Officer of Education shortly thereafter, Foley said. In August, Foley had given the district a 90-day deadline to balance the budget or face the possibility of state takeover.
“We won’t have the critical information until (HSD) submits its first quarter report to the board next week,” said Foley, who has discussed how to balance the budget with the HSD superintendent. “But we have been working very closely with board members and I met personally with the board members in a closed session that was very reassuring. I’m confident that they can pull this off.”
In late September, the district’s Chief Financial Officer told the Board of Trustees that they would need to make $6 million in cuts over the next three years. If cuts aren’t made, HSD, which has been using reserves to balance its budget for the last two years, will be in a position to request an emergency state loan in the 2007-2008 school year, according to June budget projections. However, requesting such a loan would prompt a takeover of the district by the California Department of Education. If taken over by the state, the district’s Board of Trustees would be forced to relinquish control of the district and take an advisory role.
Foley came short of saying a state takeover was no longer a possibility, but said he was sleeping better at night knowing the district would create a plan to balance its budget.
“I’m very encouraged that the plan is structured not to just dodge a bullet, but to get the district on sound footing,” Foley said. “This is building a solid foundation for the future.”
The district plans to cut expenses by $1 million next year. That will be followed by cuts of $2 million and $3 million during the 2007-2008 and 2008-2009 school years, respectively. In past interviews, Board President Margie Barrios said some of those cuts would probably come from salaries and staff health insurance plans.
While the district is scheduled to cut expenses by $6 million over the next three years, plans for how and where those cuts will be made have not yet been decided.
Interim Superintendent Ron Crates formed a Citizens Action Council last week to advise the district’s Board of Trustees on where to make those cuts. The Council consists of 16-18 parents, community members and teachers.
Crates recruited former Eastside Union High School District chief business officer Doug Emerson, who is also a San Benito High School teacher and Hollister City Councilman, to serve on the committee. Emerson said that the Citizens Council has not yet come up with any concrete ideas for the cuts.
“Usually it’s not one solution, but a combination of things such as reducing inter-district transfers and increasing revenue,” he said.
Over the past three years the district has lost about $4 million as the result of inter-district transfers, students who live within the district’s boundaries transferring to other school districts. In California, schools are funded based, in large part, on average daily attendance, therefore every student the district loses translates into lost revenue.
Emerson is confident in the Council’s ability to help the district make future cuts.
“It’s a diverse group, which is what you’d want,” he said. “I think it will be a good group of people to work with.”
Brett Rowland covers education for the Free Lance. He can be reached at 831-637-5566 ext. 330 or br******@fr***********.com.
