The decision to pull $600,000 out of reserve accounts to cover a
budget deficit discovered in the Hollister School District months
after the school year started, is a reasonable, though not
preferable, use of emergency funds.
The decision to pull $600,000 out of reserve accounts to cover a budget deficit discovered in the Hollister School District months after the school year started, is a reasonable, though not preferable, use of emergency funds.
But allowing a deficit to creep into the district’s budget halfway through the school year, on the other hand, is inexcusable.
The board agreed to use reserve funds in late January in an effort to keep the cuts away from the classrooms and teachers that endured $2 million worth of hacks and slashes as the district balanced the budget last summer.
It’s a smart decision to keep cuts away from students while school is in session. Besides, the very reason to keep reserve funds is to have the cash on hand to keep the district from having to take really drastic measures.
But the presence of a deficit at all suggests the district never really balanced its budget last summer anyway, and that’s a problem. Granted the board cut a large sum of money out the budget and raised class sizes throughout the district to save jobs, however, they also awarded pay raises to top administration officials such as the superintendent and filled a previously vacant district position with former Gabilan Hills Principal Dianne Campbell – the result of those two expenditures alone were close to $100,000. Clearly, the district should have seen this deficit on the horizon.
Although it’s no secret that funding is severely lacking for public schools – a mantra chanted by educators throughout history – the district would help its own cause with better fiscal management, especially as they consider asking voters to support a parcel tax.
Should the board ever want voters to approve taxing themselves, they must ensure district money is managed properly. A surprise budget deficit like this should never catch educators off guard – $600,000 in a $30 million budget is a significant shortfall.
Using reserves to get over the hump makes sense this time, but the district better prepare to tighten the belt and create a realistic budget that will remain balanced for the whole school year – reserve funds simply won’t pay the bills if the district keeps drawing water from that well.
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