News

Thursday, May 29, 2008

Third Interim Report Reflects the Districts’ Improved Financial Health

The districts’ budget picture has improved largely due to the April budget cuts and the governor’s May revision to the proposed state education budget. As part of the districts’ ongoing budget study, the board of education approved the districts’ third interim budget report Tuesday night. The third interim budget report was required under Education Code Section 42131 (e) as a result of the districts certifying its second interim budget report in March as “negative,” signaling that the districts would not be able to meet our budget obligations over the next two years.

The third interim budget report serves a different purpose than either the first or second interim reports. The purpose of the third interim is to help determine whether the districts have an immediate need for cash. Additionally, the third interim allows the opportunity for the districts to estimate its ending fund balances more accurately and report that information to the county office of education.

The third interim reflects a much improved financial outlook for the districts, primarily due to the board’s adoption of a fiscal recovery plan in April and changes in assumptions regarding state revenue due to the governor’s May revise of his original budget proposals in January.

The board is scheduled to review its preliminary budget for 2008-09 on June 17, with final adoption slated for June 24.