Due to a slow cash flow from the California state government, several districts including the Chico Unified School District currently run low on funding for their schools.
With California’s $21 billion dollar debt, the state has had trouble funding its school districts as expected. CUSD has had a decline in enrollment over the years causing the state to give less money to the district. Because of this shortage, CUSD had to close down small schools like Forest Ranch Elementary. Chico also has a higher number of special education teachers than normal. Over 85% percent of the district’s expenses pay for the salaries and benefits of the faculty. The price of benefits has risen, possible creating another unaffordable necessity.
Unlike universities and businesses, who in such a situation can reduce their services and their employee’s pay, the school district must, by law, stay open, educate every child and pay the teachers the normal salary unless they can renegotiate contracts; making the funds harder to save. With these conditions, CUSD expects to reach a debt of $7,214,365 by next November; a deficit that without recovery will cause the state to take over.
“We believed that we were successful before the state ran into severe financial trouble,” said Kathy Kaiser, Vice President of the CUSD school board.
Under state control, the existing school board would become an advisory board to the state representatives residing over the district.
“I believe it is better to have local control on the school district,” said PV principal John Shepherd.
Though under state control, the district would still have to borrow money from the open market which includes a higher interest rate. School activities that do not provide the necessary education according to state laws and college requirements will no longer receive school funds. These include sports, music, and art classes.
“The outcome of this problem is still fairly unknown—it could get ugly,” said Beverly Patrick, PV office manager.