DECEMBER 13, 1999
Contact: Jan Passama, (510) 670-4225
jan_passama@alameda-coe.k12.ca.us
County Office of Education Issues Report
on San Leandro’s Finances(HAYWARD, CA) Superintendent of Schools Sheila Jordan announced today the release of the Management Report on the San Leandro Unified School District finances that was prepared by the county office advisors who she appointed in September.
Jordan had appointed the fiscal advisors, Associate Superintendent for Business Services Pete J. Yasitis, and Business Services Director Ifeoma Adams, and requested preparation of the report in response to a shortfall in the district’s mandated 3 percent reserves discovered in September. While the district has adequate operating funds for the current academic year, the shortfall was an indication of impending serious financial problems.
According to Jordan, "The reserves deficit was an early warning sign. Since I appointed the advisors in September, our county staff and district staff have been working closely to review the district’s business operations. I want to commend our business services division for preparing a realistic, achievable long-term fiscal plan. If the district follows the recommendations, which include both cuts and the pursuit of new income, it will be back on track."
The Management Report, prepared by the fiscal advisors, includes a multi-year financial plan for the district, as well as relevant data.
According to the report, the district will have a balanced (operating) budget for 1999/2000 and a reserve of at least $426,000; but another $971,149 is needed to meet the 3 percent required reserve.
The report introduces its recommendations by clearly stating the need to reduce expenditures and/or find alternative sources of income in future years. Among the report’s key recommendations, the district needs to:
• Re-examine the current use of categorical funds and use funds more effectively (recommendation 1).
• Hire a business manager who will monitor finances and work with program managers (recommendation 4).
• Put into place a financial system that meets the budgeting needs of the program managers, superintendent, and Board of Education (recommendation 5).
• Increase its reserve by $400,000 annually, until the 3 percent contingency requirement is reached (recommendation 10).
The report also outlines the variety of problems that led to the reserve deficit, indicating that the reasons for the district’s fiscal problems are many and complex. Among them is the fact that the district ranks last in income received per student in Alameda County.
Alameda
County Office of Education
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