By Canan Tasci Staff Writer
Created: 03/10/2011 04:26:39 PM PST
RANCHO CUCAMONGA – Alta Loma School District officials approved a report saying it may not be able to meet its financial obligations over the next three years.
Board members approved their second interim financial report as “qualified” Wednesday night due to postponement of funds by the state. Districts must submit this report to the county Superintendent of Schools Office by Tuesday stating its financial condition.
“The reason why we have to do this is not our fault,” said Caryn Payzant, board president. “It’s not because we made decisions or created situations that made this choice.
“We have been responsible and we have made honest decisions and because of the financial condition of the state they have forced us to made this declaration.”
Because of the uncertainty of fund and cash balances in the second and third years of the multi-year projection, the Alta Loma district does not meet all the state criteria to adopt a positive certification at the second interim report.
“I can’t stand up in front of the board and say that we’re going to be in a good cash position for the next three years and that’s because of the state deferrals,” said said Jim Ashton, ALSD’s associate superintendent of administrative services.
The issue is 28 percent of the district’s money that is due to them for the current school year will not be given to them until the beginning of the next school year, which is July 1, Ashton said.
“That’s $8.6 million that we won’t get until the next school year and the next school year they’re going to do the same thing,” he said.
“We cannot defer payroll, we can’t tell our employees that the state is not going to pay us until July so we can’t pay you until then. We can’t do that.”
There are three possible financial certifications:
“Positive,” which means the district will meet its financial obligations for the current year and subsequent two fiscal years;
“Qualified,” which means the district may not be able to meet its financial obligations for the current year and subsequent two fiscal years, and
“Negative,” which means the district will be unable to meet its financial obligations for the remainder of the current fiscal year or for the subsequent fiscal year.
Payzant said legislators came up with this deferral plan, and they like it so much that they keep on doing it.
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