Hollister School District is one of 79 California districts
– out of 982 – that may not be able to stay afloat over the next
two years, according to a state audit report released last
week.
Hollister – Hollister School District is one of 79 California districts – out of 982 – that may not be able to stay afloat over the next two years, according to a state audit report released last week.
The district, which has been using reserves to cover deficits for at least two years, was given a “qualified” financial certification by the San Benito County Office of Education. This means the district “may not” be able to meet financial obligations for the current year or two following years.
If the district is unable to meet its financial obligations for the 2006-2007 school year – as is projected by its last budget – it will be in a position to request an emergency loan from the state. However, school board members are working toward, and will submit, a balanced a budget to avoid state intervention, Board of Trustees President Margie Barrios said last week.
Hollister is not the only district in the red. According to the state controller’s report, 33 percent of California’s public school districts have dipped into reserves to balance their budgets. The report detailed 14 districts that are expecting to run out of money in the next two years, and 65 districts, like Hollister, that reported the possibility that their expenses would outpace revenues within that time.
According to the report, the state has given $224 million in emergency loans to school districts over the last 23 years. Five districts are working now to repay emergency loans: West Contra Costa Unified, Emery Unified, West Fresno Elementary, Oakland Unified and Vallejo City Unified.
Districts that accept such loans relinquish local control. Jack O’Connell, the State Superintendent of Public Instruction, then appoints a state administrator to run the district.
When Vallejo City Unified applied for a $50 million loan for the 2003-2004 school year, it was the largest per-student, per-capita loan the state of California had ever approved. At the time the district was operating with few top administrative leaders said Tish Busselle, special consultant to the state administrator who now runs the district. The district didn’t have a chief financial officer or an assistant superintendent of human resources, and its superintendent had been fired.
“We inherited a $28 million deficit out of a $82 million unrestricted general fund,” Busselle said. “It is very sad when this happens, but some very good things have happened as a result.”
Busselle said it is difficult for districts in positions similar to Vallejo City Unified to increase revenues, so expenses must be cut. She didn’t know how long it took the district to get into financial trouble, but said it didn’t happen in one year.
“The sad thing is that the people who contributed to the problem are gone,” Busselle said. “And the people who didn’t contribute, the students, are still here.”
One similarity with Vallejo is that Hollister School District is temporarily without top leadership.
At a special Hollister School District Board of Trustees meeting on July 13, board members voted 5-0 to “regretfully” accept Superintendent Judith Barranti’s resignation, effective in August, board president Margie Barrios said Thursday. Chief financial officer Michael Slater left last month.
The board will contact the Association of California School Administrators and ask for its assistance in finding an interim superintendent. Board member Randal Phelps said once an interim superintendent was in place, the board would focus on finding a permanent superintendent.
“We will locate the best possible candidate, either from within our district or from outside,” Phelps said.
Hollister Elementary School Teachers Association President Jan Grist had hoped the board would hire someone within the district to replace Barranti.
“HESTA is disappointed that the board did not hire an interim superintendent from current HSD administrators,” Grist said. “However, HESTA looks forward to working with whomever the new interim superintendent may be.”
Brett Rowland covers education for the Free Lance. He can be reached at 831-637-5566 ext. 330 or br******@fr***********.com.
