Issues Facing the District

By Jay Siegel

The Las Lomitas School District is facing a number of serious challenges in the next few years: growing enrollment, flat or declining revenues, budget deficits, and the need to increase or at least maintain reserves.

Funding - Revenue has declined as a result of both the State fiscal crises and declining property assessments. The State contributions to the District's budget is down by $436,000. Property tax revenues were flat and may decline.

Budget Deficits - The Las Lomitas school district is a basic aid district which means that it's property tax revenue exceeds the level of funding per student education "guaranteed" by the state. While this is fortunate, it means that revenue does not increase along with additional students as it does in revenue limited school districts (non basic aid districts). The result of student enrollment growth, "built-in" growth pressures in the budget, and declining revenues is a budget deficit. Fortunately, the district had built up over the years a reserve sufficient to cover the budget deficit. However, the reserves provide only a short term solution until the structural deficit can be eliminated.

Reserves - The School Board Policy and the State of California require that the district build and maintain an adequate level of reserves to cover anticipated future liabilities and unanticipated events. The long-term financial viability of the school district requires adequate funding of the reserves. The current budget deficits threaten the viability of the reserves.