San Marino Schools Face Budget Cuts, Declining Enrollment

Governor Jerry Brown released his 2012-13 proposed budget Jan. 5 and the possible cuts could yet again leave scrambling to fundraise and or other ways to offset the shortage.

“The Proposed Budget projects a deficit of $4.1 billion in the current year and $5.1 billion in FY 2012-13 for a total deficit of $9.2 billion through June 30, 2013,” according to a Los Angeles County executive summary of the budget released Jan. 5.

The Governor’s proposed budget solutions are as follows:

• Expenditure Reductions: $4.2 billion
• Tax Revenue Increases: $4.7 billion
• Other Solutions (borrowing, repayment extensions, etc.): $1.4 billion

A $1.3 billion decrease in education and child care would help comprise the 4.2 billion in expenditure reductions.

“Basically in California they’re still trying to get the proverbial blood out of a turnip,” said San Marino Unified School District Superintendent Loren Kleinrock. “The districts are getting squeezed very hard and it’s incredibly challenging to meet the needs of kids as we are assigned to do without the resources to do them. We are more fortunate than most schools in that we have a community that is both philosophically very supportive of the schools and also has resources to help us when the state is leaving us woefully short of the resources we need.”

That said, Kleinrock does not want to have to do a special campaign this year, like the 2010-11 Refuse to Lose campaign that prevented massive cuts with large community donations.

“But all bets are off if the state keeps hacking away,” Kleinrock said.

Governor’s November 2012 Ballot Initiative

Brown’s budget also includes a ballot initiative and if the initiative does not pass, the budget calls for $5.4 billion in cuts, including $4.8 billion cuts to K-12 schools and community colleges that would take effect Jan. 1, 2013.

“The Proposed Budget relies on approximately $6.9 billion in revenue through a temporary 0.5 cent increase in State Sales and Use tax and a temporary increase in the income tax rates for persons earning over $250,000, subject to voter approval in the November 2012 General Election,” according to the executive budget summary. “After accounting for the Proposition 98 funding guarantee, the temporary tax increases are expected to provide $4.4 billion to the State General Fund.”

If the initiative does not pass, it would mean:

• A $370 per Average Daily Attendance (ADA) Revenue Limit cut—in other words, the district would receive $370 less per child per year for Average Daily Attendance (the amount the district is paid for each child that attends school).
• A 100% cut to home-to-school/sp. Ed transportation or additional revenue limit reduction (up to $84/ADA)

“Schools have no choice but to include these reductions in their 2012-13 budgets as the outcome of the election will not be known until November 2012,” noted a presentation given by SMUSD Assistant Superintendent of Business Services Julie Boucher at the Jan. 24 SMUSD Board of Education meeting.

See the full presentation attached to this article.

Teacher/Class Period Cuts

Though the district proposed and later last year, Kleinrock said this year looks better, but “that’s not in concrete.”

“Because of the and because this year all our employees were willing to take furlough days we don’t anticipate any cuts because of budget reasons for the 12-13 year,” said Kleinrock.

Should cuts need to be made, it is in the hands of the school board, who in the past favored increasing class sizes over cuts, but it remains to be seen if the current school board would make the same decision.

“This district has a commitment to the 3 'A's—academics, athletics and the arts—so unlike some districts where once it gets really tight the first thing to go are arts and athletics we try mightily not to have to cut,” said Kleinrock.

But the SMUSD is also facing , which would negatively affect funding. 

“If our numbers get lower to the point that we need to reduce positions … we can’t blame that directly on the state,” said Kleirock. “It’s and in these economically challenging times it’s more difficult for people to do so.”

Possible Solutions

The fiscal stability plan laid out by the district includes:

• San Marino Schools Foundation Annual Campaign Contributions
• Parcel Taxes
• Budget Savings and Stoneman Lease Revenues
• PTA/PTSA, parent contributions and support

The district is also continuing to look into whether will sponsor legislation that would let the district sell the Stoneman School property to the City, which would add an extra $1 million to the $5 million the district is receiving from the Stoneman lease.

A second interim financial report will be prepared in March and the district’s proposed budget is due by June 30.

What is your reaction to the state budget cuts? How do you think San Marino schools can save and bring in more funds?