Last year, the San Ysidro School District was on the brink of fiscal insolvency, at risk of being taken over by the state, in a bitter labor dispute with its teacher’s union and answering to county officials about its $4 million budget hole.
On Thursday, the new interim superintendent is projecting a positive certification from the San Diego County Office of Education after submitting a draft budget that projects $1.4 million reserves for the current and next two fiscal years.
“All I can tell you is this: I don’t know what happened before and I don’t know when it happened,” said Interim Superintendent Edward Velasquez. “Based on what I know, now looking at the budget, looking at the Governor’s January proposed budget, we will do fine.”
The small South Bay elementary school district, which has an annual spending plan of $36.4 million, accepted help in April 2013 from a financial adviser with the county in an attempt to stave off a state intervention.
Assistant Superintendent Lora Duzyk with the County Office of Education said she hasn’t yet reviewed the draft budget submitted by the San Ysidro School District, which is the only district in the county with a negative rating.
She said the school district continues to deficit spend.
“Deficit spending is a problem because that means they’re spending more than they receive, which is what got them into trouble in the first place,” Duzyk said.
Local
Dena Whittington, the district’s assistant superintendent of business services, said the district was able to project the required 3 percent reserves for the next three budget years because of increases to projected LCAP (Local Control and Accountability Plan) funding, locally controlled money.
The district is also negotiating a deal with a contractor who won a $12 million settlement against the district. The settlement agreement would include reinstating the contract and would help save the district legal fees in appealing the case.
Board President Antonio Martinez said he was pleased.
“I think it’s great news,” Martinez said. “I’ve been there two years and it’s the best news I’ve had in those two years.”
But he recognized the work is far from over.
“The way we got to this point is not something that happened overnight,” he said “It's been years in the making.”
Last fall, San Ysidro teachers went on a three-day strike following a year and a half of tough bargaining. The contentious labor dispute ended with a slight pay bump for teachers.
The union repeatedly pointed to forensic accounting by the California Teacher’s Association that said the district had money in restricted funds that could be used.
President of the San Ysidro teacher’s union Carol Wallace said she wasn’t surprised by Thursday’s news.
“I’m glad we have someone now as superintendent who cares about the parents, students, teachers, classified employees and all stakeholders in the district, and not just their own personal agenda,” said Wallace. “The money was always there. And there was no reason for us to go on strike.”
