At the May 14th Board meeting the Board deliberated and voted on the painful decision to address the 1.8 million dollar budget deficit for school year 2009-2010.  The Board of Trustees approved 3 of the 4 personnel resolutions for lay offs and the relocation of Flood School.  These actions will result in approximately 1.8 million dollars in savings.  The fourth Resolution, which would have resulted in the reduction of two special education positions, was tabled and will be considered at another board meeting. The budget savings do not include categorical restructuring and reassignments which do not impact the general fund.
 
Since 2007 this nation and the state have been grappling with an economic down turn that has impacted all levels of society.  California’s budget deficit has grown from a 6 billion dollar budget deficit to a 21 billion dollar budget deficit.  Experts expect this deficit to continue to grow in the upcoming months.  

As a result of the national economic down turn and California’s 21 billion dollar budget deficit, California school districts have been severely impacted by a reduction in revenue allocation to schools.  Many school districts have had to institute massive lay offs and have had to close a number of schools.

The direct impact to Ravenswood City School District in part was due to the following:

• A reduction in State allocation
• Lehman Brothers bankruptcy which effected San Mateo School Districts
• Loss of revenue from a drop in Average Daily Attendance due to declining enrollment
• Increased purchases of textbooks/supplies to address DAIT Corrective Actions

As the result of these unforeseen outside forces, we were faced with a 1.8 million dollar budget deficit.  While we anticipate revenues from the Stimulus Package, this revenue will be reviewed to address any additional end of the year budget deficit, budget reductions due to the May 19th election and/or other options the Board may wish to consider.

I want to again strongly stress that there will be additional reductions to consider in the next few months. The scope of the next reductions will be determined by the election on May 19th and the Governor’s budget revisions in June.