Submitted by Denair Unified School District
The short-term financial outlook for the Denair Unified School District remains positive, trustees were told Thursday night, but the continued erosion of enrollment at the middle school and high school remains a threat to long-term stability.
Linda Covello, the district’s chief business officer, sketched a mixed picture during a budget update for board members, employees and others in the audience.
The good news, she said, is that the district has fully emerged from the financial crisis of 2013 that led to substantial salary cuts for all staff, some layoffs and temporary county fiscal oversight. DUSD is on track to finish its 2015-16 fiscal year with a general fund surplus of $1,333,239. And, thanks to an infusion of one-time money this year from the state, the district’s projected ending general fund balance is $2,186,713.
“We are projecting positive cash flow through June 2017,” Covello told trustees.
Clouds loom on the financial horizon, however. Covello projects enrollment at Denair High School and Denair Middle School to continue to decline – by approximately 4% in 2016-17 and 8% in 2017-18. And while growth at Denair Elementary Charter Academy and Denair Charter Academy is expected to partially offset the drop, Covello said there still is a net loss to the district. She expects DUSD to slip back into deficit spending each of the next two years unless the trend is reversed.
“This tells the story of DMS and DHS,” said Trustee Ray Prock Jr. “We need to get that enrollment up.”
“So, we need more kids,” stated Trustee Kathi Dunham-Filson.
“Yes,” replied Covello. Continue reading “Increasing High and Middle School Enrollment Key to Denair’s Long-term Budget Health” »