California school districts just received the latest-ever mid-year budget cuts in conjunction with an earlier-than-imagined subsequent year budget adoption -- decisions that have education officials working to decipher the implications for their schools. The state decisions will mean 14 less teaching positions in the Hanford Joint Union High School District in 2009-2010, as well as non-teaching staff cuts.

Savings decisions beyond the initial staff cuts -- done first to meet the mandated March 15 deadline to notify teachers of a potential non rehire -- will be made by district officials over the next six weeks, as they work on a new district budget.

Handling 2009-10 cuts on top of mid-year cuts will prove challenging, especially in anticipation of opening Sierra Pacific High School's doors in the fall. District officials held a budget study session prior to the board meeting Tuesday to begin discussions. Trustees will adopt a district budget for next year by the end of June.

Cheryl Silva, district assistant superintendent of business services, said at the study session the state's cuts resulted in $1.5 million less in funds for the next school year. Additionally, opening Sierra Pacific will cost an estimated $283,665. Those costs include an estimated $150,000 for utilities, just under $59,000 for supplies to run the school and about $75,000 for stipends for athletic coaches and activity advisors.

Also, the district's payroll annually increases by nearly $500,000 because of contractual bonuses. Because the district will cut staffing for 2009-10, the increase will be slightly less at about $430,000.

Specifically among cuts to the district's payroll, are administrative changes that trustees approved Feb. 24, which will save nearly $200,000 for next year. Also, trustees approved "pink slipping" five full-time teachers, bringing the total cut with retirements and non re-hires to 14 teaching positions.

At their March 24 meeting, trustees will consider reducing the hours of two non-teaching district employees and laying off a full-time mechanic. Altogether, staffing cuts and leaving some vacancies unfilled will save the district about $1.2 million in 2009-10.

District officials have added to this total a 25 percent reduction in budgeted site expenditures, but are still beginning budget discussions for 2009-10 at a deficit of $713,665, Silva said.

She added that these numbers don't factor in money promised from the American Recovery and Reinvestment Act of 2009 signed by President Barack Obama Feb. 17. Those funds are restricted to spending in specific areas, but may benefit schools, if state officials don't keep a portion to back-fill the state budget or make additional cuts since schools are getting federal help -- both concerns voiced by numerous local education officials this week.

But there is one ray of sunlight filtering through -- though its helpfulness to school district budgets may not prove beneficial to California students -- in the state's decision to allow flexibility in the spending of several previously restricted funds through June 30, 2013. For several categorical programs such as school safety and adult education, California schools will receive funding but won't necessarily have to provide the services. It will be up to school districts to decide whether to provide the programs and services or use the money in their general funds.

However, some programs such as special education and vocational education will not be allowed this flexibility.

"Although the budget was seen to be insurmountable, the flexibility offers us some hope," Silva said. "It really is interesting how they came up with what is flexible and what is not."

In the meantime, the district is still missing its $14 million for the construction of Sierra Pacific that was expected in December. Silva said there has been no update on the status of the money, but that if the state bases disbursement on a "first-in, first-out" method, the district's money would be sixth on that list.

"We have about 60 days left of money to spend on construction payments before we would have to potentially pause construction," Silva said.

District officials are collaborating with contractor Dave Bush to explore potential alternate funding options that might allow a temporary continuance beyond 60 days without the state money, Silva said.

The reporter can be reached at 583-2424.

(March 11, 2009)