Schoolmates Revenues Slip

A shaky economy and family belt-tightening have conspired to bring down revenues for the Piedmont Recreation Department’s Schoolmates, which serves some 250 children at three sites.

If the trend continues, the child care program, which is supported by user fees and monies from the city’s general fund, will begin cost-cutting measures. But Recreation Director Mark Delventhal says it is premature to prepare for significant reductions.

This year’s Schoolmates revenues are projected to hit $725,000, only a few thousand dollars ahead of last year’s net despite a 9 percent increase in fees, according to a mid-year report submitted to City Council by Finance Director Mark Bichsel.

While the program is expected to incur a deficit of some $220,000, its fund remains solvent with a balance of roughly $170,000.

“We’re somewhat concerned about the ups and downs, but what we’re most concerned about is a trend,” Delventhal said. “To me, a trend is two to three years.”

While school construction proceeds, Wildwood Elementary students are attending classes at an alternative site in Emeryville (Havens Elementary students went there last year). After the bus ride, many parents are opting to have their children go directly home rather than to Schoolmates, said program supervisor Erin Rivera.

In addition, parents increasingly use day care only when necessity dictates, rather than for leisure pursuits, Rivera said.

As enrollment in Schoolmates has decreased, more monies have been transferred from Piedmont's general fund to make up the revenue shortfall. The city also has an emergency fund that could kick in over the short term, but could not serve as a permanent funding stream. As of last June, there was $393,000 in that fund–enough to cover about than half the program's yearly expenses, which run in the $700,000 to $800,000 range. Staff salaries account for 80 to 90 percent of that budget.

If cuts prove necessary, “We would first try to cut around the edges: snacks, supplies, and only minimally staffing," Delventhal said. Staff cuts would be undertaken through attrition, “but we’re not there yet.”