More California schools may not be able to pay bills, state reports

[alp227]

http://www.mercurynews.com/ci_15404799

by Sharon Noguchi, San Jose Mercury News, June 29, 2010

As growing evidence of the fiscal crisis gripping schools, nearly 16 percent of California districts and county offices of education may not be able to pay their bills in the next two years, the state reported Tuesday.

The number of agencies turning in questionable financial projections in March jumped by 38 percent to 174, according to the California Department of Education.

Among the 14 districts classified as facing serious financial risks in the next school year were Franklin-McKinley and Orchard in San Jose. Among the 160 districts deemed potentially at risk in 2011-12 were East Side Union High in San Jose and Milpitas Unified.

The districts said they already have moved to a more stable footing since the reports were compiled.

I graduated from an East Side Union school in 2009. It's pretty scary knowing that the district may go bankrupt in a few months.

You know why this is happening? Not only fiscal irresponsibility (not mentioned here but I'm just saying it's a probable cause...oh wait didn't the previous few Republican presidents leave behind giant debts?) but also A LACK OF STATE FUNDING?? :banghead:

"Clearly this is a result of inadequate funding of schools," state Superintendent of Schools Jack O'Connell said in announcing the list. As schools are grappling with decreased and still unclear funding — because the Legislature hasn't passed a state budget — they've had to reduce budgets by $17 billion from what had been expected for 2010-11.

In addition, each month, the state has been deferring payments owed to districts, thereby creating potential cash-flow problems.

Ultimately, this bad news just enables the privatization-for-the-sake-of-saving-money movement. So $%^& frustrating.

[Hannah Bell]

1. As States Cut Public Workers, Congress Is Reluctant to Act

In 2010, the Obama administration has estimated, school districts across the country might lay off as many as 300,000 employees, many of them teachers. That would be five times the number of layoffs in 2009, and ten times the number of layoffs in 2008.

These pink-slipped teachers are just the first and most noticeable wave of public-sector employees getting the chop as states slash their budgets...

As of yet, the Senate has no plans to authorize any additional funds to help states close their budget gaps - and with teachers unions protesting and citizens starting to question the cuts, Silva, of Education Sector, sees a "huge political mess" fomenting for the fall.

"A lot of people running for office now are not going to be in really good shape," she notes. "If you watch those districts where there have been significant teacher layoffs, unpopular layoffs, it will be interesting to see where the blame falls."


http://www.commondreams.org/headline/2010/06/29-8


here's to a very messy 2010.