County Superintendent of Schools Tim Foley has given the
Hollister School District 90 days to present him with a plan for a
balanced budget.
Hollister – County Superintendent of Schools Tim Foley has given the Hollister School District 90 days to present him with a plan for a balanced budget.
Foley will initiate talks with the state about intervention if the district does not have a plan for a balanced budget in place by that time, he said.
“If it’s not in, then I will be forced to invoke AB 1200 and invite participation from the state to help solve this problem,” said Foley, referring to California State Assembly Bill 1200 which allows for school districts to be taken over by the state.
Foley sent a letter detailing his deadline decision to board members yesterday.
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. That means the district “may not” be able to meet financial obligations for the current year or two following years. This year’s budget projects that HSD will be $1.1 million short of meeting its state-mandated reserves in the 2006-07 fiscal year.
Board of Trustees President Margie Barrios said she and the other board members were just as concerned as Foley.
“We’re buckling down to get this done,” Barrios said. “We have a plan and we’re working on it.”
A realistic plan for a balanced budget was not “far away,” board member Randal Phelps said. He said the board would likely have the plan completed within the 90-day period.
“Our goal is to get this done as soon as possible,” Phelps said.
Although cuts would likely be necessary, Phelps said the board would try to avoid firing teachers and other district employees.
“Our goal is not to cut people,” Phelps said. “We have to figure out how to make (the budget) work without doing that.”
One the main reasons for preventing state intervention is to avoid harsh cuts made by people outside of the district, Phelps said. Outside administrators, like Foley, would not be able to make cuts with the precision needed to dull the impact on the district’s 6,100 students.
“(Foley) chose not to put his kids in our district,” Phelps said. “He wouldn’t know what was best for the kids.”
After losing much of its top leadership over the last two months, including the district’s superintendent and director of human resources, the board recently convinced former Director of Business and Operations Michael Slater to come out of retirement a second time to provide financial expertise to the school district, which is mired in red ink and relying on reserves to pay its bills.
Tuesday the HSD Board of Trustees approved a consent item recommended by Superintendent Judith Barranti to contract with Slater.
Barranti, whose resignation takes effect August 9, could not be reached for comment.
Slater will work for the district as an independent contractor and will have “exactly” the same duties as before his retirement, Board President Margie Barrios said. He will not run the day-to-day financial operations of the district.
Barrios said Slater will serve as part of the district’s teacher contract negotiation team and will provide the board with other, unspecified financial services.
Teacher contract negotiations stalled in June after the district declared an impasse. The district is in the process of filing paper work with the Public Employment Relations Board, which will send a mediator to help resume negotiations if one is needed.
Slater will work on an “as needed” basis and will be paid $600 per day for his services, Barrios said. Slater’s contract stipulates that he is “not an employee” of the district and will have sole discretion over the “methods, details and means” he uses to perform services for the district.
Barrios said she is glad to have Slater back while the district continues its search for a replacement, which began more than six months ago.
“We’re going to benefit (from this),” Barrios said. “And the new person who comes in will benefit also.”
Slater is familiar with the school’s finances and has many years of experience working school district budgets.
In June, Slater presented the district’s budget, pointing out that net expenses will outpace net revenues by $1.1 million next year.
“This is the cleanest, most detailed, exact budget I’ve ever done,” Slater said at the June board meeting. “And also the saddest.”
Slater was coaxed out of retirement by HSD last December specifically to create the June budget while administrators searched for a new business director. He is on vacation and could not be reached for comment.
Having Slater return will be beneficial to the district, Foley said.
“I have the highest respect for Mr. Slater,” Foley said. “He know his stuff and this is an encouraging step by the district.”
Brett Rowland covers education for the Free Lance. He can be reached at 831-637-5566 ext. 330 or [email protected].
