Four school districts reported they may be unable to pay their bills in the next two years because of the state budget crisis.
Jamul-Dulzura Union, La Mesa-Spring Valley, San Ysidro and Vista Unified school districts have all disclosed possible future deficits to the San Diego County Office of Education in reports filed in March.
Leaders of the four districts all now say they'll be able to cover their costs because of budget cuts made since then.
That any of the county's 42 school districts signaled uncertainty about paying its bills – even temporarily – is highly unusual. The last time a local district did so was 13 years ago.
The districts' assessments of their financial picture were as of Jan. 31 – shortly after Gov. Arnold Schwarzenegger proposed cutting next year's state budget by 10 percent. The state faces a projected shortfall of as much as $20 billion, the governor recently said. His proposal would cut education funding by $4 billion – $1 billion in current spending and a $3 billion reduction in school-funding increases.
“In all honesty, I don't think anyone could have said no problem in January,” said Brian Marshall, superintendent of La Mesa-Spring Valley.
Vista Unified forecast that it would spend $26.7 million more than it takes in between Jan. 31 of this year and June 2010. Its report explains that the projected deficit is “due to the fiscal irresponsibility of the state.”
The Vista school board has since cut $8.7 million from the budget, averting the massive three-year deficit, the district's chief business officer said.
Local school districts are required to file their budgets and three additional financial reports each year with the county Office of Education. The reports cover the current and the next two fiscal years. The office approves the reports.
Lora Duzyk, assistant superintendent for business services at the Office of Education, said the four districts are required to file an extra financial update at the end of this month. She said she expects those reports will restore the districts to a clean bill of fiscal health.
“They're doing what they need to do,” Duzyk said.
Districts can certify themselves with one of three designations. A positive designation signals that the school board certifies it will be able to cover costs for three years. With a qualified designation, a board is stating that it may not be able to cover costs. A negative designation means the district projects that it's short.
The four districts gave themselves qualified designations.
“Qualified means 'I don't know,' ” Marshall said. He said that because La Mesa-Spring Valley has cut about $4.7 million from its budget since the report, he's prepared to submit a positive certification this month.
San Ysidro, too, plans to upgrade its rating to positive after cutting $3.4 million.
The last time a district gave itself a designation other than positive was 1995. That year, Mountain Empire Unified School District rated itself negative, and Alpine Union School District reported a qualified designation.
Chris Moran: (619) 498-6637; chris.moran@uniontrib.com
