SVUSD Could Lose $8 Million in State Budget Deal

The state budget deal between Gov. Jerry Brown and legislative Democrats protects the Saddleback Valley Unified School District from additional cuts at the moment but could force the district to make midyear cuts of up to $8 million if tax collections fall short, officials said Tuesday.

In a budget presentation at the school board meeting Tuesday evening, Assistant Superintendent of Business Services Geri Partida said  Saddleback Valley schools will be safe from new cuts as long as California receives revenues of at least $2 billion more than initially estimated. Otherwise, the budget deal will automatically trigger new cuts of $250 per student, or $7 million to $8 million a year, she said.

“We have to pray that the state brings in that extra $2 billion. But we won’t know until January,” Partida said, noting that the figures are initial estimates.

The state budget hinges on California receiving $4 billion more in tax revenues than the governor’s earlier projections. But if tax revenues come in lower than expected, it would automatically trigger cuts to higher education, state prisons and in-home support services for the elderly and disabled. Under the worst-case scenario, it would also slash $1.5 billion from K-12 education, which districts could absorb by shortening the school year by seven days.

State officials revised their revenue expectations based on an unexpected $1.2 billion collected in May and June, thanks to the improving economy.

Partida explained the impact of the new state deal during a budget presentation at the board meeting Tuesday. There, the board unanimously approved its budget for the 2011-12 school year, a $221-million spending plan that increases average class sizes in grades four to 12 by two students, raising the average to 34.5 students per teacher.

The district has been coping with a double whammy of budget cuts and declining enrollment. In 2011-12, under the best scenario, the district will receive $5,210 per student from the state. In 2007-08, it got $5,785.

The budget also included a $3.5-million loss in revenue because the district will have 676 fewer students next year.

“We started the year having to cut $3 million just to break even, due to declining enrollment,” Superintendent Clint Harwick told the trustees.

The district is looking at a tough financial picture for several years to come, including a projected $8.3-million deficit in the 2013-14 school year because the district will have spent down its reserves, Partida said. That comes in part because employee concessions—which have saved the district $20 million in two years—are set to expire in the 2012-13 school year.

“We’re in as good a shape as we are in because we’ve been able to work with our employees. These concessions have kept us afloat, and when I say us, I mean the kids,” said Trustee Ginny Fay Aitkens. “All of our employees deserve thanks for cooperating.”