News

Wednesday, September 23, 2009

Plan approved to resolve revenue reduction from the state

A message from Superintendent Brian Sarvis

At last night's board meeting, Deputy Superintendent Eric Smith presented a plan to offset the recent one-time state revenue reduction of $3.4 million. The plan was necessary because state funding entitlement for K-12 education was lowered through a one-time cut of $252.83 per student in the state education budget at the end of July. The resulting loss to our district was an additional $3.4 million.

I commend Mr. Smith and the districts’ Business Office for their fine work. The plan, which was approved by the board, calls for no staffing cuts, no program cuts, and allows our schools to spend state categorical funds to pay for programs. It includes the following:

• Decrease unrestricted general fund reserve by amount of restricted ending balance sweep = $2,029,675
• Reduce routine restricted maintenance account in the secondary district for one year = $523,433
• Designate funds from settlement agreement with Cottage Hospital = $62,431
• Transfer fund balance from inactive workers compensation self insurance fund = $500,000
• Designate excess property taxes in elementary district for payment to state = $124,704
• Recalculate K-3 class size reduction apportionment based on passage of Assembly Bill X4 2 = $83,967
• Recognize excess property txes due to reduction in charter school in lieu taxes $106,292

The link to the report is
http://www.sbsdk12.org/budgets/2009-10/PlanToOffsetRevenueReductionFrmState9-22-09.pdf