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District: Budget
The school district is providing these updates on a regular basis to dispel misinformation about the ongoing state budget crisis and its effect on local schools.
Rumor: Employees’ salaries will be cut.
Fact: No reductions in salaries have been identified. The Board of Education adopted a resolution on June 16 that preserved its ability to reduce employee compensation in 2009-10 if necessary. The resolution did not result in any pay reduction. Similar resolutions were passed by several other school districts as a precautionary measure due to the state’s continued fiscal uncertainty. For represented employees, any change in compensation would be contingent upon negotiations.
Rumor: Class Size Reduction, or smaller class sizes in the primary grades, will be eliminated for the 2009-10 school year.
Fact: There are no plans to eliminate Class Size Reduction for the 2009-10 school year.
Rumor: School districts may have trouble meeting payroll because of the state’s fiscal crisis.
Fact: The state announced July 10 that $4 billion, the largest annual payment of state funds to California’s public education system, has been delayed for several weeks as a result of the state’s ongoing fiscal crisis. The payment will instead be made July 30, state officials said. This development does not impair the Long Beach Unified School District’s ability to meet payroll, bond payments or vendor payments. The school district does not anticipate a problem with its cash flow yet. If the state continues to defer more and more of the school district’s income, it could eventually place the district in a cash-deficit position, but that is not yet the case, nor has district staff heard proposals out of Sacramento that would mean our employees, bond holders and vendors would not get paid in the new fiscal year that just began.
