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Schools

Sequoia High School District Budget Better than Expected

Despite bleak financial forecast last year, Sequoia District appears in good financial footing going forward.

Despite bleak financial projections made last year, the is in much better financial to footing than it was expected be in.

According to a report analyzing the district's books at the close of last year, the district's general fund is currently sitting in a $547,472 deficit while holding $19.2 million dollars in reserves. An additional $4.4 million is in a special, unallocated reserve fund.

The report, which was addressed Wednesday night at the Sequoia Union High School District Board of Trustees meeting in the district offices in Redwood City, illustrated a much healthier financial outlook than what was projected.

At the end of the last school year, the district administration and board approved trimming $5 million from its budget, which included eliminating 33 positions and implementing two unpaid furlough days for district staff over the summer.

Leaders predicted that the district would be facing a $4 million deficit this year. But according to the discussion last night, that stance has softened.

Trustee Don Gibson asked Assistant Superintendent Enrique Navas whether the board should prepare itself for making another set of cuts similar to those made last year.

"It doesn't look like we will be there," said Navas. "It looks positive where we stand now, but we will have a better handle as the year progresses."

Navas said action by the state government is a wild card that may determine whether the district's financial outlook will change. He pointed to uncertainty about the future of local redevelopment agencies as a potential cause for concern to the budgets of the local k-12 school districts, which Governor Jerry Brown has strived to protect from cuts.

Gov. Brown passed, as part of his budget, an action which forces cities desiring to keep local redevelopment agencies in tact to pay the state a percentage of what is held in the local coffers.

Alternatively, if cities refuse to pay the state, another piece of legislation passed by Gov. Brown would require those redevelopment agencies to be abolished.

The scenario, commonly described by local government officials as "" to the state, has been challenged in court by the League of California Cities and the state's redevelopment agency.

The agencies are alleging the state's efforts are unjust because local redevelopment funding is protected from seizure by the state government under legislation passed last year which requires all locally generated money be kept at the city or county level.

According to Navas, he expects the issue to eventually work its way to the Supreme Court before an ultimate decision is made.

Gov. Brown's budget assumes nearly $2 billion worth of local redevelopment dollars will be used to close the state's budget gap.

Should it ultimately be decided that money be taken back from the state to stay local, an impact may be felt in the public school system.

But for the time being, the district's financial outlook is rosier than expected, according to Superintendent James Lianides.

"The good news is that under any circumstances with the current budget, we are going to get through this year no matter what happens in Sacramento," he said.

If everything stays the same, he said the district may be in a position to roll over its budget again to next year.

But that is still far down the road, he said.

"If something happens at the state, that picture changes quickly," said Lianides.

The district will soon begin receiving tax roll projections from San Mateo County, which will give insight to how much property tax revenue will be generated for local schools.

According to the budget report, 81 percent of the high school district's income is generated by property taxes.

But Gibson said the district should not be content to rest on its laurels and wait to begin making budget decisions. He suggested administration begin thinking about approaching the Sequoia District Teachers Association regarding future contract negotiations.

Last year, despite budget cuts, no teacher represented by the union lost his or her job.

Trustee Chris Thomsen seconded Gibson's sentiment, and also said the district administration should begin assessing scenarios of what kind of budget decisions will need to be made for the upcoming year.

Lianides agreed that would be a sound financial planning strategy.

"We can begin taking steps this fall to prepare for scenarios where this could take us," he said.

Trustee Olivia Martinez said she felt that was wise.

"I think that is a great idea," she said.

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