San Diego Unified School District Considering 900 Layoffs To Balance Budget
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Today AWAKE Community's Chairman, Emily Richards, had the opportunity to speak with Richard Berrera of the San Diego Unified School District on KPBS's These Days program. In classic politican double-speak, Mr. Berrera changed the subject and didn't acknowledge retiring bond funds, and reducing the overall debt of the School District as an option to increase the overall financial health of the school district.
Ms. Richards writes:
"As I mentioned on my call, I'm a CPA and know very well how school accounting works. Schools have different 'funds' they use to account for different departments. It is true, you cannot transfer restricted 'funds' from one department to another. But, the School can increase its overall financial health by retiring old bonds, thus reducing its overall debt and expenditures.
For example, SDUSD is currently spending $30M to build a new school (Jonas Salk Elementary), and millions on environmental reports and mitigation to build that new school on protected land that is home to several endangered species. How? Using old voter approved Bond Funds = more debt when issued. They have a 'use it or lose it' policy. But this unwise.
For example, if you have a $10k home equity line of credit, is it wise to spend the $10k, and incur new debt, on building a new guesthouse -- when you can't afford to buy school supplies or clothing for your child? Wouldn't it be wiser to retire the home equity line and avoid going further into debt? This way, you aren't thinking myopically, but working toward your overall financial health and priority.
Just because a State Bond (debt) is available for spending on expensive developers and environmental mitigation, doesn't mean the school has to spend it. They could simply retire the bonds, save the debt, and increase the overall financial viability of the school district itself.
While retiring bonds may not DIRECTLY save teachers' jobs or help fund what happens inside our classrooms (instead of brick and mortar), it will directly increase the financial health of the school district and the state.
Why isn't the school district exploring this option? Why is Richard Barrera saying the construction program 'fund' of the schools is healthy, when everything else is failing? Don't let his tricky talk fool you. :) "
What do you think?