School District Projects Deficit Unless it Cuts Teachers

The Millbrae School District estimates a potential deficit of $1.8 million in the 2012 fiscal year if it does not reduce its staff.

After earlier this month for seven teachers if state voters don’t approve tax extensions in June, the board met on March 14 to further discuss possible reductions and budget impacts.

The county and state require the district to compile an interim financial report that includes multiple year projections.

“We assume there will need to be further reductions in 2012/2013,” said Michele Dodge, MSD interim chief business officer. “But, we have not identified specifically what those reductions are.”

The school district projected this scenario assuming tax increases do not pass and federal funding dwindles. It foresees a potential increase in class size to over 28:1. The class size at is currently 21:1, according to the latest reports.

The state education code allows schools a maximum of about 30-32 students per class, and it financially penalizes districts that exceed that number, according to Dodge. However, Millbrae can ask for waivers to maintain full funding.

Each school district is also expected to maintain a reserve fund, Millbrae’s being about $500,000 per fiscal year.

“That $500,000 is just a drop in the bucket,” said Millbrae School Board President Don Revelo. 

That reserve amount would last about a month, according to district officials.

But Tom Gallagher, a teacher and president of the Millbrae Education Association, a local nonprofit that supports schools, indicated that the school district is not taking into account federal stimulus money into their budget.

Instead of cutbacks, he’s calling for an additional three teachers next year due to the increase in students.

“This is the rare opportunity for the Millbrae School Board to show its community that it wants to support students, teachers, staff and its educational programs,” he said.

 School district officials did not return phone calls to clarify allocation of federal stimulus funds.