Schools

Reserve Fund Saves Poway Teachers From Layoffs

District officials said reserves and federal stimulus money will allow them to keep paying teachers despite the fiscal crisis.

The Poway Unified School District has enough money to avoid any teacher layoffs this year but could be faced with more than $25 million in cuts next year, officials announced Tuesday.

Just how deep the budget hole is next year depends on whether tax extensions in Gov. Jerry Brown's proposal go through. With or without the extensions—which could before voters in June—no teachers, counselors or other certificated staff will be laid off this year, officials said in a press release.

"Because of our collaborative work, we have a short-term solution. We must also work together at the state level for long-term funding solutions for K-12 education," PUSD Superintendent John Collins said in a statement. "If the Governor's proposed extension for existing taxes is not approved, we realize that PUSD will be facing significant budget reductions in the 2012-13 fiscal year."

Find out what's happening in Powaywith free, real-time updates from Patch.

The announcement said officials will not send out preliminary layoff notices to teachers by the annual March 15 deadline to do so, essentially taking layoffs off the table as a budget-cutting strategy should the fiscal situation worsen before the start of the new fiscal year July 1.

The district has about $20 million in reserves that would be drawn down to just under $14 million to cover staffing costs and funding reductions if the governor's tax extensions pass, according to a district budget presentation (attached to this story). About $3.4 million in cuts would be needed for the 2012-13 school year in this situation.

Find out what's happening in Powaywith free, real-time updates from Patch.

However, if the tax extensions don't pass, that $20 million reserve will be drawn down to a little more than $3 million next year. That would mean more than $25 million in cuts would be needed for the 2012-13 school year to make ends meet. For 2013-14, that figure would surge to nearly $60 million in needed cuts.


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