Walnut Valley, Pomona Districts Face Fiscal Uncertainty

Both Walnut Valley Unified and Pomona Unified are among 188 school districts statewide on a list of local educational agencies in financial jeopardy, according to the California Department of Education.

The state Monday released its Second Interim Status Report for 2011-12, which shows a record number of districts with either a negative or qualified financial status.  That is up 61 from the First Interim Report released in February and 45 more than the Second Interim Report issued this time last year, officials said in a news release.

The Walnut Valley Board of Education in March voted to approve its qualified second interim report. A qualified certification means that a school district might not be able to meet its financial obligations for the current year or the two subsequent fiscal years.

The designation requires the district to come up with a budget stabilization plan by June.

At that March meeting, Assistant Superintendent Jack LeBrun gave a presentation on the Second Interim Report. LeBrun pointed to mid-year budget cuts related to transportation funding as a key reason for the qualified certification.  

He also said that the district could see a $370 per pupil reduction from the state, depending on what happens with Gov. Jerry Brown’s tax initiative set to go to voters in November.

Even if the initiative passes, the district is deficit spending at a rate of more than $4 million a year through 2013-14, he said.

“We have to address that burn rate in order to stay solvent,” he said.

The district recently was able to avoid issuing layoff notices by instituting an early retirement program for budget savings.

Pomona Unified, which includes some schools that serve Diamond Bar, was not so lucky.  The district recently issued layoff notices to 270 employees and officials said more cuts could be made to reduce the 2012-13 budget by $19.3 million.

“We’re having (a meeting) to discuss layoffs for administration here in June. There will be reassignments and cuts,” said Richard Martinez, Superintendent of the Pomona Unified School District.

If the governor’s tax initiative doesn’t pass, Pomona Unified will have to cut another $10 million, Martinez said.

Besides qualified, there are two other classifications for district financial reports – positive and negative.

A positive certification means districts can meet their financial obligations for the current and two fiscal years.  A negative certification, the most serious designation, means that they can’t meet their obligations for the current fiscal year or the two to follow.

State Superintendent of Public Instruction Tom Torlakson said that of the 6.2 million children attending California schools, 2.6 million are in districts that are on shaky financial footing, the highest number in state history.

"This is the kind of record no one wants to set. Across California, parents, teachers, and administrators are increasingly wondering how to keep their schools' lights on, their bills paid, and their doors open," Torlakson said. "The deep cuts this budget crisis has forced—and the uncertainties about what lies ahead—are taking an unprecedented and unacceptable toll on our schools."