For the second time this year, the California Department of Education (CDE) released an early warning list of school districts facing financial uncertainty.
A few local districts made the list.
Le Grand Union High School District and Dos Palos-Oro Loma Unified School District were listed as districts that may not meet their financial obligations in years to come. For the second time this year, Mariposa County Unified School District was grouped, along with 14 other school districts, as a district that will not be able to pay its bills this year and in the next two years.
Based on a district's financial situation, the CDE places districts in one of three categories: positive, negative or qualified.
Dos Palos-Oro Loma Unified's $21.4 million budget and Le Grand Union's $6.5 million budget were classified as qualified; however, Dos Palos poses a somewhat special situation.
The district self-qualified this year, not because it had issues paying its bills, but because it had cash flow problems, said Brian Walker, the district's superintendent.
The district includes schools in Merced and Fresno counties, and it has faced issues getting funding from Fresno County in time to pay its bills. As a result, the district has taken out loans or tax revenue anticipation notes to carry it over until the money comes through, Walker added.
This June, the district created a plan to reserve $300,000 each year over the next few years to avoid the situation in the future.
Dos Palos-Oro Loma Unified made some budget cuts this year because of declining enrollment and reduced funding by the state.
The district made $1.2 million in cuts to its budget in March, which included 12 teacher positions, two counselor positions and one district administrator. Calls placed to Le Grand for comment weren't returned.
Mariposa County Unified's problems are far worse.
The school district is negatively certified, which means it won't be able to cover its $19.4 million this year and in the coming two years.
Calls placed to Mariposa County Unified weren't returned; however, the district responded to questions posed by the Sun-Star in late March when it was originally placed on the watch list.
According to Linda Levesque, chief business officer for the district, next year the district will post a projected negative ending balance of $202,415. In 2011-12, the projected balance will be a negative $1.032 million.
The county's education offices' financial instability is caused by declining enrollment, high transportation costs, a costly special education program and difficulties staffing district office positions, Levesque said.
The total number of school districts on the state's financial warning list increased from 126 earlier this year to 174, a 38 percent increase, according to CDE officials.
The state has 1,077 school districts.
"We are seeing an alarming spike in the number of school districts that are having trouble meeting their financial obligations," said state Superintendent of Public Instruction Jack O'Connell. "Schools on this list are now forced to make terrible decisions to cut programs and services that students need or face bankruptcy."
State schools have been reeling from $17 billion in losses in funding over a two-year period, according to the CDE.
The consequences?
More than 20,000 teachers received pink slips this year, and schools have eliminated summer school programs, increased class sizes and have cut art, school nurses, sports and libraries from their budgets.
Reporter Jamie Oppenheim can be reached at (209)385-2407 or joppenheim@mercedsun-star.com.
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