Dear Reed School Families,
Please take a few minutes to read the message below from our Superintendent Christine Carter and the Q & A that follows. This is important information on the impact of the state financial crisis on the Reed Union School District.
Lexie Sifford
Reed School Principal
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Dear Parents,
Please take a few moments to read the prepared Q & A that explains the impact of the state approved budget on our District financial picture. While we will lose some funding, we are currently very fortunate to weather this difficult time with little to no impact to our children’s educational programs. This is due to the prudent financial planning started by the Board of Trustees six years ago.
The good news is:
All employees will be retained next year; there will not be teacher layoffs.
Instructional days for students will not be reduced.
Foundation supported programs will continue to be offered; art, music, Spanish, technology, and PE.
Our budget is currently sound and well managed.
Thank you for your continued support and partnership.
Sincerely,
Christine Carter
Superintendent
Reed Union School District
277 A Karen Way
Tiburon, CA 94920
Questions and Answers on the Impact of the California State Budget Crisis on the Reed Union School District:
What is the impact of the recently approved state budget on the Reed District?
The state budget approved February 19th decreased funding for public schools by $8.4 billion. Half of the revenue deductions are taken from a school districts revenue limit and the other half from categorical funding. Since the Reed District is a Basic Aid District and derives the major portion of its funding from local property tax, we do not have a revenue limit, hence we do not lose funding on the revenue limit side. However, we do receive categorical funding and will lose 15% of funding for programs the state has identified for cuts. The District will lose $50,000 in categorical revenue this year and $12,000 in 2009-10.
With the loss of revenue will the district have to make program cuts?
The district will be able to retain current programs for our children for 2009-10 and does not plan on having to lay off employees due to the loss of funding. Through the long term it is the Board’s goal to maintain programs and not have employee lay offs.
Will the District lose any other funding next year?
Due to the downturn in the real estate market and the decrease in home sales in Tiburon and Belvedere, we will experience a reduction in revenue increases next year. Since 2003 the District has experienced an average annual increase of property tax revenue around 8%. Next year, a 3% increase is estimated, which amounts to added revenue to the District budget of $300,000. This is our lowest increase since 1995. Over the next three years, we estimate that revenue increases will be less than 3% annually, resulting in a reduction of over a $1 million in anticipated revenue. If the real estate market were to rebound faster than expected, such a large loss may not be realized. Given the state of the housing situation, even in southern Marin, it is realistic to assume the real estate market will not rebound for a few years.
Will the $300,000 of increased revenues be enough to cover ongoing costs next year?
The District has ongoing costs to cover employee’s health and welfare benefits, contractual salary schedule increases for longevity or earned units for teachers as well as longevity increases for classified (non-teacher) staff. Next year, $200,000 will be needed to fund these continuing expenses.
Will the District receive any of the federal stimulus money approved by Congress and the President?
We are hopeful that we will receive Special Education and Title I funding, which supports students needing the most support in reading. Unfortunately, there are still many unanswered questions and little clarity from the state on how and when the funds will be released to districts. As soon as we receive more information, it will be shared.
The District had to add a new kindergarten class this year and has larger than usual classes in some other grades. If enrollment continues to increase, is there adequate funding to hire more teachers to keep class size down?
The Board has been very prudent in building reserves to protect programs for our children, as well as employee’s jobs, in case of a fiscal emergency. A reserve has been created that will fund two additional teaching positions.
The Governor proposed reducing the number of days students attend school. Is that going to happen in our District?
Absolutely not! Reed Union School District students will continue to attend school for 180 days, just as they do now. This is an important component of our commitment to maintain programs for our children.
Since the Marin County Treasurer manages the District’s cash, what are their cash investment priorities?
According to Michael Smith, Marin County Treasurer the priorities are:
1. Capital preservation
2. Liquidity
3. Rate of return consistent with the first two investment objectives
The Board feels assured that at this time the County is handling our investments prudently.
How can parents help or contribute?
It is critical that our attention remains focused on the bigger picture as we move through these troubled times. For example, we need to be more concerned about saving the art program so our children can have art, than offering to purchase materials so that our children can experience a particular project. Our kids will be fine if we are able to maintain our wonderful programs through out this difficult financial period. If we have to substitute different projects or speakers or field trips to save funding, we will make sure our replacements are quality and serve the purpose.
Our parents are so very generous, even in these trying times. Continuing to give financially to the Foundation or donating services through the PTA is a
tremendous help and will benefit all of our children. It is especially true in these times of economic uncertainty that parents support for the Foundation makes the difference for our children.
How can I obtain more information if I have questions pertaining to the budget?
Please email your questions to Ellen Mayer at emayer@marin.k12.ca.us in the District Office. She will make sure your questions are directed to either Superintendent Chris Carter or Business Manager John Frick for their response to you.
You can also check the District website at http://www.reedschools.org <http://www.reedschools.org/> , which is updated weekly with any new information pertaining to the budget situation.
Reed Union School District Mission Statement:
Together we provide our children with extraordinary opportunities to enlighten their minds, inspire their hearts, and strengthen their resolve to positively impact their world.
