April 24, 2000
Contact: James McGrew, (510) 670-7761; jimmc@acoe.k12.ca.us
Resource: Sheila Jordan, Superintendent; (510) 670-4140
County Office of Education Releases 2nd Interim Fiscal Reports on Alameda County School Districts
Hayward - Sheila Jordan, County Superintendent of Schools, today announced the results of the Alameda County Office of Education (ACOE) review of the 2nd Interim Financial Reports submitted by the county's 18 school districts. Fifteen of the districts received a positive certification, which means that they are projected to meet their financial obligations through the end of the school year. However, two of those are on the ACOE "watch list." Of the remaining three districts, two received qualified certification, requiring continued review, and one district received a negative rating.
Emery Unified School District submitted a qualified certification, indicating that it may be unable to meet all of its financial obligations. Based on the ACOE staff review of the report, Jordan has changed the Emery certification to negative. "Emery did not attain the level of attendance on which its budget was based, its staffing level has risen above budgeted level, and projections for mandated cost reimbursement had to be significantly reduced," explained Jordan. "A negative certification allows me to appoint a fiscal advisor to work with the superintendent and Board of Trustees to return the district to financial health," Jordan said. [ADDENDUM: To clarify, Emery has received a qualified certification, and Superintendent Jordan will delay a decision on appointing a fiscal advisor. She has directed County Office Business Services staff to work closely with Emery USD staff to develop a balanced and realistic budget for 2000/2001. That budget and a third interim report will be submitted to the County Office June 1. If that report and budget are acceptable to Superintendent Jordan, the appointment of a fiscal advisor will not be necessary.]
The San Leandro Unified School District received a qualified certification on its report, and ACOE staff members continue to serve as fiscal advisors to the district. The financial problems of the district first surfaced last fall when the district's reserves fell below three percent of annual expenditures, as mandated by the state. "We are currently working to develop a budget for the coming year, which will re-establish the reserves, while causing minimum impact on educational services to students," stated Jordan.
Jordan had announced in January that she was issuing a qualified certification of the 1st Interim Financial Report for the Oakland Unified School District (OUSD). A district the size of OUSD is required to maintain a two percent reserve and to demonstrate the ability to meet its financial obligations for the current and two subsequent fiscal years. "The multi-year projection we prepared for OUSD indicates to us that the district could have problems maintaining the required reserve. For this reason, we will continue to carefully monitor the district's financial performance."
Although Berkeley Unified School District received a positive certification, it is on the ACOE watch list because it is projected to end the fiscal year with reserves that are below its three percent requirement. "While current indications are that Berkeley will be able to meet all of its financial obligations, it is a serious matter when reserves fall below the required level," said Jordan. ACOE will continue to review district finances.
Dublin Unified School District is also on ACOE’s watch list. Although Dublin received a positive certification, Jordan noted that the district will incur greatly increased expenses because of the new elementary school it plans to open. ACOE is monitoring these plans, as well as the district’s overall budget.
In addition to its role as fiscal monitor of the county's school districts, ACOE serves as an advocate and facilitator for quality educational practices in all of the county's public schools. ACOE provides continuing education opportunities for teachers, conducts research on the educational and fiscal performance of school districts, lobbies for education funding, and operates schools for students with special needs that individual districts cannot serve.
Alameda
County Office of Education
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