State revenue deferrals have increased 465 percent over the last four years as the state struggles to generate revenue to pay school districts cash owed, according to a county Office of Education official.
The state began revenue deferrals, putting off money owed to districts until the next year, in the 2002-2003 fiscal year, and the amounts owed have increased over time, said Arnold Preciado, Imperial County Office of Education assistant superintendent of business services.
With more than 30 percent of state aid dollars owed being deferred into the next fiscal year, it’s “the worst financial year” he’s ever seen in 18 years.
In light of that, “our school districts in general have done a very good job to continue operating their school districts and providing quality education for our students,” he added.
Deferrals for Imperial County schools districts totaled more than $43 million in the 2010-2011 fiscal year, and the 2011-2012 fiscal year’s revenue deferrals are estimated to be closer to $60 million.
If a tax initiative is approved in November, the state would roll back about $2.4 billion of those deferrals to the schools.
In the case of Calexico Unified School District, the projected amount of state deferrals totals approximately $18 million for the 2011-2012 fiscal year, Calexico Unified Business Manager Mei Randle said.
The district anticipates a $5.3 million cash shortfall by June. Ninety-two percent of its budget comes from the state and just eight percent from property taxes.
The district has the option of a $6 million short-term loan in the form of a Tax Revenue Anticipation Note, Randle said. The repayment schedule on that loan extends to mid-September and would allow the district to put cash in the bank and meet obligations by June.
The district hopes to have made cuts necessary by then in order to pay back the short-term loan.
“The TRAN will make us survive is we get it for this year,” Calexico Unified Superintendent Richard Fragale said. “We’re constantly trying to cut back. We’re constantly reviewing the budget. … It’s an ongoing basis. As we see something we can do without for now, we’re going to do without.”
Imperial County Office of Education Superintendent Anne Mallory said the issue of revenue deferrals hits school districts in low-wealth districts particularly hard.
“My issue all along, not just in Imperial County, in all counties in the state who are in low-wealth areas, the children are not receiving what they’re due,” she said. “Meanwhile, the state has an obligation to educate children. They can’t just shut down the school, because they run out of money.”
Staff Writer Chelcey Adami can be reached at 760-337-3452 or cadami@ivpressonline.com
The state began revenue deferrals, putting off money owed to districts until the next year, in the 2002-2003 fiscal year, and the amounts owed have increased over time, said Arnold Preciado, Imperial County Office of Education assistant superintendent of business services.
With more than 30 percent of state aid dollars owed being deferred into the next fiscal year, it’s “the worst financial year” he’s ever seen in 18 years.
In light of that, “our school districts in general have done a very good job to continue operating their school districts and providing quality education for our students,” he added.
Deferrals for Imperial County schools districts totaled more than $43 million in the 2010-2011 fiscal year, and the 2011-2012 fiscal year’s revenue deferrals are estimated to be closer to $60 million.
If a tax initiative is approved in November, the state would roll back about $2.4 billion of those deferrals to the schools.
In the case of Calexico Unified School District, the projected amount of state deferrals totals approximately $18 million for the 2011-2012 fiscal year, Calexico Unified Business Manager Mei Randle said.
The district anticipates a $5.3 million cash shortfall by June. Ninety-two percent of its budget comes from the state and just eight percent from property taxes.
The district has the option of a $6 million short-term loan in the form of a Tax Revenue Anticipation Note, Randle said. The repayment schedule on that loan extends to mid-September and would allow the district to put cash in the bank and meet obligations by June.
The district hopes to have made cuts necessary by then in order to pay back the short-term loan.
“The TRAN will make us survive is we get it for this year,” Calexico Unified Superintendent Richard Fragale said. “We’re constantly trying to cut back. We’re constantly reviewing the budget. … It’s an ongoing basis. As we see something we can do without for now, we’re going to do without.”
Imperial County Office of Education Superintendent Anne Mallory said the issue of revenue deferrals hits school districts in low-wealth districts particularly hard.
“My issue all along, not just in Imperial County, in all counties in the state who are in low-wealth areas, the children are not receiving what they’re due,” she said. “Meanwhile, the state has an obligation to educate children. They can’t just shut down the school, because they run out of money.”
Staff Writer Chelcey Adami can be reached at 760-337-3452 or cadami@ivpressonline.com
