How exactly will the state’s budget crisis impact IUSD?
What kinds of programs or services might be cut in Irvine?
When must IUSD make these cuts?
What happens if the District refuses to make cuts in response to the Governor’s proposal?
In March, IUSD voted to inform 250 temporary certificated employees that they will be released at the end of the current school year. Does this mean those teachers will not return next year?
It seems like school districts are forced to make cuts every few years. Why is this?
Even in good years it seems there’s always a push to raise money for local schools. Why isn’t there enough money for education?
Why was the decision made to freeze school budgets?
What areas of the district will be the most affected by the freeze?
Will modernization and construction projects come to a halt during the state budget crisis?
How long do you think state cuts will continue to affect IUSD?
What can I do to help?

Q: How exactly will the state’s budget crisis impact IUSD?
A: California’s struggling housing market and other factors have resulted in a state revenue shortage projected at approximately $16 billion. To help close this gap, Governor Schwarzenegger has drafted an initial budget proposal that would strip public education by more than $4 billion. If adopted, this proposal would shortchange the Irvine Unified School District by $12.5 million in the 2008-09 school year.

Q: What kinds of programs or services might be cut in Irvine?
A: In response to the state’s fiscal crisis, the Board of Education on April 15 approved all but one of staff’s recommended budget reductions for 2008-09. The exception was item 5b, which would have reduced science instruction in grades four and five. Board members opted instead to preserve 120 minutes of fourth- and fifth-grade science instruction per week, directing staff to utilize one-time funds from an Irvine Ranch Water District reserve account.

Of the cuts made Tuesday evening, approximately $6.15 million will produce an ongoing savings that could help IUSD weather a multiyear fiscal crisis; the rest – approximately $6.45 million – comes from one-time funds that will help bridge the gap in 2008-09.

Parents, staff, community members and the Board previously weighed in on proposed budget adjustments in public meetings and through suggestions submitted online. As a result, class-size reduction caps in the third and ninth grades were spared, and staff rescinded recommendations to trim athletics, media specialists, support for larger classes and the district’s popular Secondary Writing Project.

(To view IUSD's budget adjustments for 2008-09, click here.)

Q: When must IUSD make these cuts?
A: IUSD must have its budget adopted no later than June 30. However, staffing allocation decisions must be made prior to that date so that principals can work strategically and thoughtfully to develop the best possible instructional programs for next year. That is why it was necessary to take action in April.

Further complicating matters is the state’s timeline for adopting its budget. Though the Governor and the Legislature also have until June 30 to come up with a spending plan, they rarely meet this deadline. In fact, many experts are predicting the state won’t produce a final budget until August or September at the earliest. As a result, school districts are legally required to plan based on worst-case funding scenarios.

Q: What happens if the District refuses to make cuts in response to the Governor’s proposal?
A: Both the county and the state oversee fiscal matters involving school districts. Those that fail to produce a balanced budget risk a number of escalating consequences, including intervention by the state.

Ensuring fiscal integrity has always been a top priority for the Irvine Unified School District, and the importance of this tenet cannot be over overstated. Quite simply, our ability to manage funds in the most efficient and responsible manner is what enables us to do all that we do on behalf of our students.

Q: In March, IUSD voted to inform 250 temporary certificated employees that they will be released at the end of the current school year. Does this mean those teachers will not return next year?
A: No. That action in no way represents a final decision regarding staffing allocations for 2008-09. Rather, the move allows for staffing flexibility in the face of potentially deep state cuts.

In fact, the release of teachers on temporary contracts is a yearly practice in IUSD, as it is in most of the state’s districts. Last year, most – if not all – temporary teachers were quickly rehired. This year, as a result of the state’s massive budget deficit, enrollment figures and staff retirements will play a larger role in determining the percentage of temporary teachers who will be rehired for 2008-09.

Q: It seems like school districts are forced to make cuts every few years. Why is this?
A: Essentially, most school funding is tied to the state budget, which is subject to the fluctuations of the state economy. California’s revenue has gone up and down in recent years, and school districts have been brought along for the ride.

Q: Even in good years it seems there’s always a push to raise money for local schools. Why isn’t there enough money for education?
Many blame Proposition 13, which in 1978 rolled back property taxes and restructured future tax increases. Up until this initiative, our state operated with a budget surplus, and about 60 percent of K-12 funding came from property taxes, compared to about 21 percent today.

But it was another seismic shift that impacted districts in more affluent areas. In 1976, the California Supreme Court ruled in the case of Serrano v. Priest that property taxes should not stay local. Instead, the court decided that these dollars should be sent up to Sacramento and redistributed based on student population.

And yet, that distribution is not equal. To this day, some school districts receive fewer per-pupil dollars based on formulas that factored in the estimated value of local properties at the time of Proposition 13. Because IUSD was mostly agricultural back then, we were benchmarked at a lower rate based on the value of the land. These days, it’s hard to find land more expensive than in Irvine. And yet, we are considered by definition a “low wealth” district based on these antiquated formulas. Though we’ve made some gains in equalization over the years, we remain among the lower funded districts.

Q: Why was the decision made to freeze school budgets?
A: The budget freeze was implemented in January following the Governor’s declaration of a fiscal crisis. Our Business Services staff recognized that it’s critical to capture savings now in order to ensure a softer landing in 2008-09.

IUSD is hoping to save as much as $5 million in 2007-08 to blunt the impact of next year’s reductions. However, it’s important to remember that this is one-time money, meaning it can only help bridge the gap for one year. Most experts agree the state budget crisis will continue through at least 2009-10, so it’s critical to plan for that reality.

Q: What areas of the district will be the most affected by the freeze?
A: When weathering any type of fiscal crisis, the goal is always to keep cuts as far away from the classroom as possible. So expenditures essential to classroom instruction, safety, contract compliance and operational necessity are not be affected by the freeze.

Vacant position requests will be reviewed on a case-by-case basis. Equipment purchases, supplies and expenses related to travel or workshops are likely to be the areas most impacted by the freeze.

Q: Will modernization and construction projects come to a halt during the state budget crisis?
A: Fortunately, no. Even as the state grapples with this year’s budget, you may see some new and ongoing construction projects throughout our district. It’s important to remember that the money for capital projects must legally be kept separate from the general fund budget, which pays for teachers, books and supplies. According to the state’s very complex financing rules, funds obtained for facilities projects must be spent on facilities, whether they come from the state or from other sources.

Despite the state’s financial crisis, IUSD will continue to apply for these dollars, which will be spent effectively and responsibly to improve our schools.

Q: How long do you think state cuts will continue to affect IUSD?
A: IUSD is likely to be impacted in 2008-09 and 2009-10 unless the state’s revenues rebound quicker than anticipated.

Q: What can I do to help?
A: The state’s financial outlook may look bleak, but there’s still much you can do to help. For starters, you can attend Board of Education meetings, strike up conversations with fellow community members and
offer input on the issues that matter to you. If you believe the state should protect education funding for
2008-09 and beyond, contact your local Legislators and let them know how you feel. (For more information, check out IUSD’s Budget Watch page.)

Above all, there is no better time to support the Irvine Public Schools Foundation, which raises money to enhance our schools and operates many of IUSD’s outstanding programs.