September 2007 News
Friday, September 21, 2007
Update on Review of District Budget
During Tuesday night’s board of education workshop on the budget, Superintendent Brian Sarvis and the board of education laid the foundation for a plan to ensure accuracy in the district budget and restore confidence in the budget numbers. Dr. Sarvis said that the board of education, employees, and the public expect the district to provide consistent, accurate budget reporting and projections about future years. He also cited the need for clear and timely reports. The plan calls for a study to restructure the fiscal services department, an independent analysis of the district budget, and an independent three year budget projection.
Budget problems are not new to the district. They were evident in 2000 when the district turned to FCMAT (Fiscal Crisis Management Assistance Team) for advice on a number of fiscal management issues. Dr. Sarvis said the problems must be fixed. The district has contacted FCMAT and another independent organization, School Services of California, for proposals.
Fiscal Services Department. For a number of months, the business office has considered adding staff and restructuring the fiscal services department. The proposals will provide assistance in determining appropriate staffing levels and the most efficient organizational structure.
Budget Analysis. An independent analysis would be used to validate the district budget or identify inaccuracies through review of the current budget, budgeting practices, the budget development process, and assumptions about general fund revenue and expenditures. An independent multiple-year projection would also provide general fund projections for 2008-09 and 2009-10. Accuracy in multiple year projections is needed to determine whether we can provide additional funding now for programs that were reduced last spring or whether additional spending now would simply require us to make even larger budget cuts in the future.
We will also considering a shift from independent fiscal accountability. Currently all fiscal functions are done in-house, but we are considering a possible return to the model whereby the Santa Barbara County Education Office would provide some fiscal accounting services.
Finally, the district is anticipating selection of a new audit firm for next year’s fiscal audit.
The board of education will have more discussion about the proposals at their September 25 board meeting.