Placer

A:

Placer County school districts will have to shed an estimated $80 million of local reserves and operating funds when the first dollar goes into Proposition 2's School Account.  This will force the reduction of Placer County school districts' local funds from an average of 23% now, to just 6%.

Compare these allowed carryovers with California Department of Education and Government Finance Officers Association recommendations of a MINIMUM of 15-17% in reserves -- and the state's late payments to schools in all recent fiscal years.  Placer County schools will be allowed to carry just three weeks of operating expenses, $28 million, forward.  

Even more irrationally, the community-funded Tahoe-Truckee basic-aid district would be forced to spend down over $8 million of property taxes that it needs for fall operations.  Property and parcel taxes are disbursed in April and December (when the semi-annual installments are paid by taxpayers).  So April's disbursement has to fund August, September, October and November expenditures.  These funds would have to borrowed, substituting debt service costs for instructional investments.

And, when the next downturn hits, Placer County districts will have almost no cushion -- note that the State had not paid Placer County districts $60 million it owed them in June 2012, $22 million in June 2013, and $15 million just this June 30th, a few months ago (incidentally, two fiscal years after Prop 30 passed).  

Note that one district is shown in red because the California Department of Education qualified its certification of its financial condition during some or all of the 2012-2014 period.  Despite its challenged financial state, this district will have to spend down $900,000 of its ongoing operating funds when the state's school 'savings' account receives any deposits.  

Placer County school boards have shown themselves to be financially prudent protectors of their districts' educational stability.  Local control of local reserves makes the only sense for Placer County's children.

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