When Does a $48 Million Deficit Mean a “Balanced Budget”?

1 Response

  1. Alicia Minyen says:

    http://www.cde.ca.gov/fg/fi/ir/interimstatus.asp

    Excellent article! The depletion of reserves is very concerning and reminds me of when MDUSD received “Qualified Certifications” in the 2010 to 2013 fiscal years. (Qualified Certification is assigned when a district may not meet its financial obligations for the current or two subsequent fiscal years.) In reviewing the CAFRs during the 2010-2013 time period, the reserves were actually better than what is projected for 2019-2020 (e.g., on page 43 of the June 30, 2011 CAFR, reserves were about $36.8 million). So while the Superintendent has termed the budget to be “balanced,” it appears unlikely that the district can continue to avert another Qualified Certification. If you are successful in your secession, the teachers working in the new Northgate district will be better off given it’s easier to financially manage a smaller district and it’s easier to draw support for a parcel tax in a smaller district. As you know, MDUSD has been unsuccessful in passing parcel taxes, and I expect the lack of this kind of support to continue.