SOUTH LAKE TAHOE, Calif. – During their board meeting on March 12, the Lake Tahoe Unified School District (LTUSD) trustees heard from Chief Business Officer Kelly Buttery about their current budget.
The Second Interim projection indicates that, as defined in AB 1200, the district
will meet its financial obligations for the current fiscal year and the subsequent two fiscal years. LTUSD is self-certifying as “Positive” as they meet financial obligations with a reserve of three percent for all three years. The LTUSD budget projections from last year to 2029 will be between $62M-$67M.
“We are in a really good space when compared to other districts,” said Buttery.
Several school districts in California are facing severe fiscal distress, with seven districts receiving negative certifications indicating potential insolvency for one or more fiscal years: Hayward Unified, Oakland Unified, Plumas Unified, San Francisco Unified, Dunsmuir Elementary, Weed Union Elementary, and Yreka Union Elementary. These districts are at risk of requiring emergency state loans and having state-appointed trustees take control.
Sacramento City Unified School District is putting hundreds of employees on notice that they could lose their jobs as the district faces a projected budget deficit of over $200 million.
Some of the districts facing potential insolvency due to declining enrollment, the expiration of COVID-era funding, and rising operational costs.
LTUSD Superintendent Dr. Todd Cutler said they have been working together with staff and teachers to keep student-teacher ratios in check, and forecasting funding cuts and rising costs.
“You have to be careful with the money,” said Cutler.
Buttery told the trustees she monitors enrollment monthly and utilizes the local control funding calculator to keep on budget using the average daily enrollment figures and other variables.
See budget report HERE.
Also, during Thursday’s meeting, the trustees voted to make budget-saving cuts by closing its preschool for staff and moving operations to an external provider, Appleseeds Academy. The primary drivers for this transition are financial sustainability, operational challenges, and increased flexibility and availability for staff families. Dr. Cutler said their current analysis indicates that the program operates at a significant annual deficit, with estimated salary costs of approximately $235,918 compared to potential annual revenue of about $150,060
In addition to the financial gap, the district faces ongoing challenges related to management capacity, staffing support, and feedback from staff families regarding the need for stronger preschool programming.
Dr. Cutler said the intent of changing the way the staff preschool is handled is for long-term availability. There are currently 15 children in the infant and preschool center. Six staff members work in the center and receive a reduction-in-force (RIF) notice. He said all six employees will be offered positions in other departments.