From the Desk of the Superintendent

Superintendent J. Brian Sarvis, Ed.D.

Thursday, July 26, 2007

Questions have been raised regarding the status of the Santa Barbara School Districts’ budget, which I would like to address. Current indications are that the 2007-08 budget is significantly overstated. We planned for a large reserve this year so we could make the multiyear projections, which include meeting our required three percent reserve and negotiated salary increases over a three-year period.

The following steps are being taken and the results will be presented at the August 14 board meeting, when preliminary year-end figures for 2006-07 will be discussed. These figures affect subsequent annual budgets.

First, our business department is conducting a thorough review as part of the 2006-07 fiscal year closing process.

Second, we have hired a fiscal consultant from Vavrinek Trine Day & Co., LLP, to assist with our 2006-07 year-end closing process and review our balances.

Third, the Santa Barbara County Education Office is conducting a review of the districts’ budget, which is required as part of the closing process and prescribed by California Education Code.

Finally, the state budget also has a major impact on our current budget. To date, the state has not finalized its budget.

When the districts’ 2006-07 ending balance is finalized, the board may be able to reconsider the designations of available funds.

We are currently in the process of hiring a new director of fiscal services. Until we finalize the process, Shirley Corpuz is acting as the interim director.