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To the Bone

"Two years ago I stood before you telling you we were cutting out all of the fat. Last year was the flesh, the muscle, and the ligaments. Tonight, we're completely down to the bone," said Phil Stover, chief financial officer for San Diego Unified School District, during a special board meeting. Stover was referring to the new round of cuts to make up for the projected $48 million deficit that the board will be forced to decide on in the coming days.

The reason for the deficit, said Stover and his financial team, is reduced revenues from the state for the 2010-2011 general-fund budget. In addition to decreased revenues, the state is deferring approximately $58 million in payments to the district because of its own cash-flow problems. This past February, the state decided it would defer payment to the district until July 2010. For June, 100 percent of the payment will be pushed to July and so on. Due to the deferrals, the eighth largest school district in the country will be forced to borrow more money from tax revenues and state school facility funds, thus paying anywhere from $5 to $12 million more in interest.

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Looking for ways to balance the ever-expanding deficit, Stover presented ideas for additional cuts to the board. Those cuts included $9.2 million from Title III programs and employment positions, funds that are used for limited-English speaking students, $4.8 million in cuts to the special-education budget, and $3.4 million by eliminating vacant positions from the payroll.

"You're not protecting any of the course needs that help the neediest students accelerate. It's like you're saying forget those students," said board member Shelia Jackson during Stover's presentation. "I understand we're having financial difficulties right now, but I think it has to go across the board."

After staff's presentation, Interim Superintendent Bill Kowba spoke to next year's projected financial standing. "I think it is clear that next year is worse, at least at this point, without any new information, it's worse."

Board members will approve a list of cuts at their June 8 budget meeting and plan to adopt those cuts by June 22.

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"Two years ago I stood before you telling you we were cutting out all of the fat. Last year was the flesh, the muscle, and the ligaments. Tonight, we're completely down to the bone," said Phil Stover, chief financial officer for San Diego Unified School District, during a special board meeting. Stover was referring to the new round of cuts to make up for the projected $48 million deficit that the board will be forced to decide on in the coming days.

The reason for the deficit, said Stover and his financial team, is reduced revenues from the state for the 2010-2011 general-fund budget. In addition to decreased revenues, the state is deferring approximately $58 million in payments to the district because of its own cash-flow problems. This past February, the state decided it would defer payment to the district until July 2010. For June, 100 percent of the payment will be pushed to July and so on. Due to the deferrals, the eighth largest school district in the country will be forced to borrow more money from tax revenues and state school facility funds, thus paying anywhere from $5 to $12 million more in interest.

Sponsored
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Looking for ways to balance the ever-expanding deficit, Stover presented ideas for additional cuts to the board. Those cuts included $9.2 million from Title III programs and employment positions, funds that are used for limited-English speaking students, $4.8 million in cuts to the special-education budget, and $3.4 million by eliminating vacant positions from the payroll.

"You're not protecting any of the course needs that help the neediest students accelerate. It's like you're saying forget those students," said board member Shelia Jackson during Stover's presentation. "I understand we're having financial difficulties right now, but I think it has to go across the board."

After staff's presentation, Interim Superintendent Bill Kowba spoke to next year's projected financial standing. "I think it is clear that next year is worse, at least at this point, without any new information, it's worse."

Board members will approve a list of cuts at their June 8 budget meeting and plan to adopt those cuts by June 22.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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