HUSD board OKs first leg of a 2-part 2011-12 budget plan

Healdsburg Unified School District board members adopted the first of two district budgets for 2011-12 Wednesday.

Board members unanimously approved the so-called "dual budget" spending plan, with the understanding that the numbers adopted Wednesday could change significantly by September, when the second budget is presented.

"This is our first take," quipped Steve Barekman, HUSD's business services manager. "It's a pretend budget -- not quite as posh as it will be in September."

Barekman recommended the dual budget process based on uncertainty about revenue from property taxes and from the possible sale of the next month, and from the current school year will not be closed out until September.

"It's a little like the Wild West in school financing right now," said HUSD Superintendent Jeff Harding. Harding was referring to the last-minute passage Tuesday night of the state budget, combined with a flurry of new standards and rules to be put into place immediately.

"There's an absurdity going on," Harding said. "Here we are in a board meeting on June 29, reading about rules that have to be changed by tomorrow."

Harding said it was not immediately clear if the in If so, that would likely result in an increase in property tax revenue to HUSD, Harding said.

Harding said the new spending plan does not include $1 million the district has put in reserves in case the state makes further cutbacks in December or January, midway through the school year.

"We call that Fund 17," Harding said. "We don't touch that money."

Barekman said Fund 17 was necessary because "we wouldn't be able to cut staff or raise revenue at that time."

Preliminary numbers call for 2011-12 HUSD general fund revenues to be $16.2 million, an 8.9 percent decrease over 2010-11 revenues of $17.8 million.

Expenses for 2011-12 are projected at $15.1 million, a 16.7 percent decrease from expenses of $18.2 million in the current school year.

Harding said the drop in expenses was a combination of staff layoffs and the loss of one-time grant money spent in 2010-11 that would not be repeated for 2011-12.

Layoffs include the equivalent of 3.8 full time teaching jobs. Also, district full-time accountant Ann Clark resigned earlier this year after a wage cut. Harding said the district is seeking to hire a part-time accountant to replace Clark.

Board member Judy Velasquez said she was concerned that the business services department -- which includes Barekman and two administrative clerks -- was too understaffed. She recommended hiring a full-time accountant.

"How reasonable is it that a part-time accountant could do this job?" Velasquez asked Jim Maxwell, a fiscal services consultant to the district who was present for Wednesday's meeting.

"Not at all," Maxwell replied.

Harding said the district, because of belt-tightening, would have to try to find a qualified accountant who would be willing to work part-time.

Barekman said the beginning fund balance for 2011-12 was projected in the budget Wednesday as $22,332, but he said he expected that to rise by September. Estimated ending fund balance is $369,218, which also is subject to change.

Board member Vince Dougherty said the wildly fluctuating nature of the school financing process this year was "frustrating."

"Is there a light at the end of the tunnel?" he asked Maxwell.

"No," Maxwell said.

In any case, Dougherty, who took office on the board in January, praised the work of Barekman and Harding in keeping the district operating as smoothly as possible under stressful circumstances.

"We're so indebted to them for a great deal of financial oversight," Dougherty said.

HUSD will have a special board meeting on July 13 to receive and open bids, if any, for purchase of Foss Creek School. If there are more than one bid, the board will have 10 days to decide which bid to accept.

The next regular board meeting will be Aug. 10.