School & District Management

California Schools Brace for Fiscal Fallout

By Lesli A. Maxwell — December 05, 2011 5 min read
Kindergartner's Isabella Fernandez, left, Mason Crawford, Jr., center, and Austin Welter, review a worksheet at the Elk Grove Unified School District's Stone Lake Elementary School in Elk Grove, Calif., last month. With the state's budget crisis looming, options for school districts like Elk Grove Unified include slicing another seven days off the state's minimum 175-day school year, which already is five days shorter than the national average.
  • Save to favorites
  • Print

Thousands of California public schools face the prospect of slashing up to a week of instruction, canceling bus services, or laying off nonteaching staff in the middle of this school year because state revenues are expected to fall below what the governor and lawmakers counted on when they approved an $86 billion general fund budget last June.

The Legislative Analyst’s Office—the nonpartisan fiscal adviser to California’s state lawmakers—predicts the state treasury will be down as much as $3.7 billion, which would automatically trigger up to $2 billion in midyear spending cuts in public programs that will fall hard on K-12 education. The analyst is also projecting a $13 billion shortfall in next year’s budget.

It’s a scenario that could push some school districts into insolvency. They include San Diego Unified, the second-largest district in California, with 132,000 students. Late last week, Gov. Jerry Brown was poised to file papers to qualify a ballot initiative for November 2012 that would raise taxes on the wealthy and boost the sales tax by a half cent to help stave off even deeper cuts to schools next year, according to the Associated Press.

A final verdict on the possible midyear cuts will come Dec. 15 when the governor, a Democrat, releases a final forecast for the remainder of the fiscal year, which ends June 30. While it’s possible that the governor’s finance team could reach a more optimistic conclusion about the level of state income than the legislative analyst, school districts are bracing for the worst.

On average, school districts are facing a loss of between $180 and $200 per student. (The average per-pupil spending statewide for the current fiscal year is $7,700, according to the Legislative Analyst’s Office). That cut would come on top of the state zeroing out all funding for transportation, which totals nearly $250 million.

“The impact will be really severe for classrooms and students,” said Paul Hefner, a spokesman for Tom Torlakson, California’s superintendent of public instruction. “Everyone recognizes that times are difficult, but school districts have already done everything they can to trim their budgets.”

A recent poll by the University of Southern California and the Los Angeles Times newspaper found that a strong majority of California voters would be willing to pay higher taxes to support public schools. Those results could bode well for efforts to place an initiative for increased school funding on the November 2012 ballot.

‘Just Awful’

California public K-12 schools have endured five straight years of spending cuts, totaling about $18 billion. They also have had to operate without another $10 billion that state lawmakers have deferred in recent years but promised to pay back in future years.

Funding for public schools in the current fiscal year—$34.7 billion in general fund dollars—along with expenditures for health and human services account for well more than half of the state’s general-fund spending.

In many school districts, the academic calendar already was cut by a week in the last two years and could be pared even more. Instructional days can be cut under the mid-year budget reductions.

Districts can opt to reduce their school year by up to seven instructional days, down to as low as 168. That would put the amount of instructional time that California students receive near or at the bottom when compared with other states, said Arun Ramanathan, the executive director of the Education Trust-West, an Oakland-based nonprofit that advocates for poor and minority children.

“It’s just awful,” said Mr. Ramanathan. “And the rationale for it was, ‘Well, nothing happens during the last week of school anyway.’ But California is home to 1.8 million English-language learners for whom every one of those days would count.”

Only districts that can reopen negotiations with their public-employee bargaining units will be able to make an adjustment to the calendar in the middle of the school year. State law prevents districts from laying off teachers in the middle of the school year.

Still, with another massive shortfall projected for the 2012-13 fiscal year, teachers are likely to lose jobs, said Dean E. Vogel, the president of the 300,000-member California Teachers Association. Roughly 30,000 educators have been laid off in the last two years, he said.

“People want schools to have what they need in terms of good teachers, low class sizes, and other resources,” Mr. Vogel said. “The challenge is drawing the connection for people that schools won’t get what they need until there is more revenue flowing into the general fund.”

Looking Ahead

For districts that planned their budgets based on the worst-case scenario, there will be enough money in reserves to avoid shrinking the school year or making reductions that will disrupt their educational programs, said Michael Ricketts, an associate vice president for School Services of California, a Sacramento-based company that provides financial, business, and governmental advocacy services to school systems.

Districts without reserves to draw on or that didn’t plan for midyear cuts will have to rely on options such as canceling bus services and laying off nonteaching staff members, Mr. Ricketts said.

“If these midyear cuts go through, I think we are going to see many districts that will be in cash trouble,” Mr. Ricketts said. “If districts don’t have enough to make payroll, they’ll be insolvent.”

San Diego Unified is facing that possibility if it cannot bridge a projected $92 million shortfall next year, according to Bernie Rhinerson, the chief of staff to Bill Kowba, San Diego’s superintendent.

The district planned as if the additional state revenues would materialize. The district laid off between 200 and 300 teachers last year, then rehired most after the state budget was approved in June, Mr. Rhinerson said. Now, the district’s leadership is focused on how it might reach agreements with its employee unions on deferring raises set to take place in the fiscal year that begins on July 1 and implementing—for the third straight year—a five-day furlough.

“We would like to see a revenue solution after five years of cuts and more cuts,” Mr. Rhinerson said. “We’ve cut all that we can.”

A version of this article appeared in the December 07, 2011 edition of Education Week as California Schools Girding for Fiscal Fallout

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Grow Leaders, Keep Teachers: Leadership Development as a Staffing Strategy
Find out how to turn leadership development into a staffing strategy and grow your next generation of school leaders from within.
Content provided by Frontline Education
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Teaching Webinar
Closing the Practice Gap: Essential Insights for Leaders
Three instructional experts will share strategies for making students’ reading and math practice more engaging and impactful this year.
Content provided by Renaissance
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School & District Management Opinion Don’t Make This Common Mistake When Onboarding New Teachers
A few small adjustments can make experienced teachers feel valued and new teachers supported.
Renee Gugel
3 min read
Two teachers with different skill levels train differently to arrive at the same destination
Vanessa Solis/Education Week + Getty
School & District Management Should Districts Pay Vendors Based on Student Outcomes? What the Research Says
Tying vendor pay to outcomes can help boost student achievement, researchers find.
4 min read
ISTEJune30AA
Education technology companies market their products and services at the ISTE Live 26 + ASCD Annual Conference in late June in Orlando, Fla. Some school districts are now insisting that payments to ed-tech companies be linked to evidence that their products and services improve student learning.
Marvin Joseph/Education Week
School & District Management Who Inspires You? Nominate Them For EdWeek Leaders To Learn From
Nominations are due at midnight Sept. 8, 2026. The next cohort of honorees will be recognized in February 2027.
3 min read
tk
The 2026 EdWeek Leaders To Learn From.
Education Week
School & District Management From Our Research Center 75% of Educators Expect Student Behavior to Be a Challenge This Year. What Else?
Students themselves are top of mind, even as districts face financial headwinds and broader uncertainty.
6 min read
Image of a person on a unicycle juggling icons representing: computers, calendar, planning documents, financial documents, desk with lunch bag and coffee mug.
Robert Neubecker for Education Week