Budget Briefing
February 27, 2004
From WCCUSD Communications

At its special board meeting on Thursday, February 26, trustees received a budget update from Ruth Vedovelli, the district's chief financial officer. The report included a presentation from Dr. Carol Berg and Bob Blattner of School Services of California, a review of the revised proposed reductions for 2004-05, and an update from the board budget subcommittee.

Mr. Blattner and Dr. Berg of School Services gave an overview of the current state financial picture. "I wish we had better news to give you on the state of the economy and what's happening in school districts around the state, and on some of the particular problems that West Contra Costa faces," Mr. Blattner said. "However, it is a very, very grim time.

"Although some of the most recent news is hopeful, you have a lot of pain up and down the state with colleagues who are facing some of the same brutal choices that you face," Mr. Blattner said.

Over the past two years, the state has created an inherited debt of $15 billion that has become a structural problem. Mr. Blattner cited Proposition 57 as a critical piece to addressing the state deficit.

Dr. Berg stated that two particular items exacerbate West Contra Costa's fiscal situation:

> Low funding from the state: The district receives less basic per pupil funding from the state-otherwise known as revenue limit funding- than most other districts. "Your revenue limit funding is lower than most districts like you. It's below the average statewide."

> Unusually high health benefits costs: This year alone, the district will spend more than $9.5 in health benefits for people who no longer work in WCCUSD. "There are very few districts left who can continue to afford lifetime health benefits," Dr. Berg said.

The loan repayment is another issue unique to the district, Dr. Berg said. "When all of these things come together, it means that you are in a precarious position that other districts, although stretched to the limit, do not have to face."

Mr. Blattner pointed out that West Contra Costa, like many other districts in the state, is also caught up in the baby boom demographics that is creating declining enrollment. He estimated that about half of the 1,000 school districts in California are struggling with this issue.

Following the School Services presentation, Ms. Vedovelli reviewed the revised budget development calendar that included the following revised timelines:

> March 3: The Particular Kinds of Service (PKS) list, the basis for notifying certificated staff of possible layoffs, will be approved. Draft budget reductions will be reviewed in light of election results for Measure J and Propositions 57 and 58.

> March 8: Final budget reductions approved, rescind layoff notices as appropriate.

> May 5: Last date to revise budget; additional layoff notices will be rescinded as appropriate.

> June 2: Final budget presented for review and discussion.

> June 16: Adoption of 2004-05 budget.

Trustee George Harris then presented a report from the board budget subcommittee. Trustee Patricia Player, along with Mr. Harris, serves on the subcommittee. The presentation included an analysis of proposed administrative reductions, which found that total salary and benefits for central office administration amounts to $4.5 million, or approximately 2.5 percent of the district's $180 million unrestricted general fund budget.

Proposed cuts to downtown administration, which will occur regardless of what happens at the March 2 ballot, will reduce central office administrative costs by 12 percent.

Mr. Harris also reviewed the proposed budget reduction list and identified all items that the subcommittee is recommending for restoration should Measure J pass.

At the beginning of the meeting, Pinole Middle School Principal Vera Rowsey, representing the Richmond Association of School Administrators (RASA), recognized the RASA 2003-04 Award Recipients for exemplary service in public education:

> Debora Haynie, Confidential Executive Secretary
> Harriet MacLean, Middle School Principal
> Carlena Moss, Elementary Principal
> Toni Oklan-Arko, Central Office Administrator
> Tim Shaw, Adult Education Administrator
> Ana Souza, Personnel/Human Resources Administrator
> Sally DeWitt, Friend of Education Award
> Kaye Burnside, Assistant Superintendent