By Nicole Achs Freeling
GreatSchools.net Correspondent
- District Offers Primer on Next Year's Budget
- Interim Superintendent Chan to Retire
District Offers Primer on Next Year's Budget
At a Community Budget Workshop Thursday night at Balboa High School, district representatives offered a primer on the district's budget: where the money comes from, how expenditures break down and what changes might be coming at the state level.
Increases in federal, state and local revenue have helped to offset the loss of funds due to declining enrollment, according to district budget documents. Commissioner Jill Wynns said the district has not had to make the major cuts it did last year — such as closing schools — to balance its budget. But the district faces continued budget pressure due to declining enrollment, which amounts to about 800 students a year, equal to about $7 million of funding.
Myong Leigh, chief of policy and planning, explained that the district's two main funds are its facilities fund, comprising bond money, developer fees and state building funds, and its general fund, made up largely of revenue from the state. The general fund is broken down into unrestricted funds, which can be spent at the discretion of the district, and restricted funds, which are earmarked for categorical programs such as special education.
The district is looking at a $640 million budget for 2006-07. It is expecting unrestricted general fund revenues of $356 million, up from $332 million last year. Its budgeted expenditures are $334 million.
Most of the budget pressure has fallen in the area of unrestricted fund. The reason is that the district gets money per pupil from the state, based on average daily attendance. As enrollment has declined, this money has declined. "A well-funded district can weather some declining enrollment," Leigh said. "But a chronically inadequately funded system that shows continual declines can't do it."
Some good news came from Sacramento earlier this month in the form of the governor's May revision of the state budget, which allocated a cost-of-living (COLA) increase of 4.58 percent to the district, higher than S.F. school officials were expecting. The COLA increase is meant to keep state funding in line with increasing costs of operating schools.
The 4.58 percent COLA represents about $13 million in additional money for the district, according to district Budget Director Reta Madhavan. Expected declines in attendance will represent a loss of about $7 million, leaving a net of about $6 million in additional money. That, however, will be wiped out by salary increases for teachers reaching higher seniority levels, increases in health benefit costs and pay raises negotiated in last year's union contracts with employees, district representatives said.
The district is looking at two main strategies for addressing the budget crunch caused by declining enrollment, representatives said. One is the development of a long-term plan to increase enrollment, a first for the district, Leigh said. The other is the launch of a parcel tax, which is currently slated for the February 2008 ballot, to coincide with presidential primaries. The tax would seek to raise funds largely to increase compensation for teachers and add additional classroom and administrative staff, as well as develop other initiatives aimed at building enrollment.
The parcel tax could be a huge boon to the district, on the order of Proposition H, Leigh said.
But, Wynns said, tax increases are always a hard sell, and they must pass by a two-thirds majority. "It's very unlikely we can pass a parcel tax if we have a big fight with the unions this year." To that end, she said, the district is working hard to reach an agreement with the teachers union on its upcoming contract by the end of this school year, a move that would be unprecedented in the district.
Wynns encouraged community members to get involved in helping the parcel tax succeed. "This is one of the few things we can do — not just in the district but in the whole community — to make a big impact on the (funding) dilemma."
Interim Superintendent Chan to Retire
After a 40 year career with the school district, in addition to 13 years as student here, Acting Superintendent Gwen Chan announced she would be retiring from the district July 1, 2007. She said she would be happy to help with the transition to the new superintendent, which the board is expecting to name by the end of the month, according to BOE President Mark Sanchez.
Chan's move disappointed those who had hoped she would seek the post of permanent superintendent.
Chan made her announcement Wednesday at Francisco Middle School, which she had attended as a youngster, giving the graduation speech in 1960. She spoke to a crowd of supporters that included Mayor Gavin Newsom, current and former board members, the police chief and other civic leaders. Commissioner Norman Yee gave Chan a big letter "F" for service that had he attained at Francisco as a youngster.

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