ADA miscalculation leads to budget worries for school and district
New concerns have arisen for students and parents of PRJUSD with the PRJUSD district budget and its financial road ahead.
The district revealed last month it has a reserve of 0.96 percent, considerably lower than the California requirement of 3 percent—in spite of last year’s approximation of 3.11 percent in reserves during budgeting, a difference of nearly $1.7 million.
The large margin of error in calculation is due to a myriad of factors, many apparent in the unaudited actuals that Superintendent Chris Williams presented in October to the Board of Trustees. A overestimation in average daily attendance revenue also is to blame, according to Williams; an Italian stainless steel pool to be constructed at PRHS is not to blame, the district says.
Unaudited actuals are an annual financial statement that reports the financial activities of the district before the data is formally audited. The district is slated for county office intervention if the 3 percent reserve cannot be recovered in months ahead.
Significant budget expenses have included five years of salary raises to district teachers and classified staff, which has ranged from 5.5 percent to 1.5 percent across consecutive years.
Special-needs student enrollment has increased from 845 to 935 over the past five years and has cost the district approximately to $320,000. A 2011 special education lawsuit continues to shadow the district, as well; a settlement and multi-year payout, “will be budgeted into future budgets,” according to a memo from Williams.
Williams is donating his 1.5 percent increase in salary from last year to a foundation that will circulate the money into district expenditures.
“Last week was challenging, yet I value comments and felt it essential to put the 1.5 percent back into their hands and in the hands of students,” Williams said in an interview with the Paso Robles Press.
— by Hannah Hochheiser, News Co-Editor
A $1.7 million attendance mistake
A forensic audit from Jan. showed that the ADA -- average daily attendance --revenue was miscalculated, impacting the expenditure of the 2017-2018 budget by approximately $480,000.
Three areas of ADA were overestimated, according to a forensic audit: attendance of transitional kindergarteners, fifth year seniors, and dual enrolled students.
“Unfortunately, those [miscalculations] have been done for multi-years, and if we wouldn’t have done the forensic audit, it would have been continuing,” Williams said. “So we modified our process for ADA. Were reporting to our ward as well as our cabinet on a weekly basis so we can monitor assess and evaluate it.”
These miscalculations will not impact the 2018-2019 school budget. ADA revenue has already been reduced by 45 students for the year ahead. This year kicked off with attendance campaigns already on display in “Be Here!” posters around PRHS with a target attendance goal of 94.8 percent within the district.
Despite budgeting errors, the district has had success in raising programs and ADA. Currently, the district is servicing 7,100 students this year, roughly 1,000 more students than projected numbers from four years ago.
There will be no furlough days, staff layoffs, or program cuts as a result of low reserves, Williams has reiterated. The district will focus on re-evaluating four main areas: management, programs, revenue generation, and staff. Assessing budgeting and management errors while maintaining staff and programs are the main focus of reductions.
—by Alayna Hernandez, World Co-Editor
$8.2 million pool isn’t to blame
PRJUSD says it did not spend a dime on its high publicity pool project at PRHS, contrary to popular belief.
Measure M has instead bought the state-of-the-art, $8.2 million stainless steel pool coming to PRHS that has been ordered from Italy, delivered, and sits in sea-trains next to the tennis courts. Construction will begin after a bid process from companies who can assemble the parts. Measure M was a $95 million general obligation bond passed in November of 2016. The usage of Measure M funds is currently in its first phase, which includes the new aquatic complex and Arts Academy upgrades at Bauer Speck.
“100 percent of that money is coming out of Measure M or donated monies or in kind work donations, so there is no conflict [with PRJUSD’s budget],” Williams stated.
The money came from Measure M, a bond passed in Nov. 2016 which provided $95 million to the district to repair, acquire, equip or construct the new facilities needed. Over $5 million of the $8.2 million goes towards the 50 meter pool, another 25-yard pool that is also the diving well, the pool decking, some outside seating, an equipment room, and all the basic necessities for the swimmers to host meets and water polo games, which the Municipal Pool in Paso Robles cannot currently do.
“This area deserves to have CIF championships,” District Athletic Director Rich Clayton told the Paso Press. He pointed out the importance of using the pool to advance student performance, event hosting, and recruiting possibilities.
—by Emily Olsen, Circulation Manager