Canan Tasci, Staff Writer
Created: 03/23/2012 09:03:11 PM PDT

CHINO – Chino Valley Unified School District officials have approved a budget report that states the district is $2 million in the red.

As a result, they will be back in May with another report, with possible changes, that will reflect its fiscal outcome through 2013-14.

“The district will continue to monitor all spending, all revenues and information from the state as it prepares the third interim report for May,” said Julie Gobin, district spokeswoman.

“It is likely that districts may not have much new information from the state until the governor releases his May revise and after the June primary election.”

Districts are required by the state to submit first and second interim reports that reflect their financial status for three school years to their county board of education and the state board of education.

The first interim report should represent the district’s financial status ending Oct. 31. The second interim reflects the district’s budget ending Jan. 31.

Districts that submit a qualified or negative report must also provide a third interim report in May.

There are three possible financial certifications.

The first, “positive,” means the district will meet its financial responsibilities this school year and the next two years.

Second is “qualified,” which means the district may not be able to meet its financial responsibilities for the current year or two subsequent fiscal years.

The last certification is “negative.” This is when a district is unable to meet its financial obligations for the remainder of the current school year or two consecutive school years.

At a Dec.8 school board meeting, Chino Valley Unified board members approved their first interim budget as “qualified.”

Board members responded in February by reducing its budget by almost $20 million. The cuts will be in effect for the 2012-13 school year and continue into 2013-14.

“When we discussed the possible third-year deficit at the January study session, we had not figured in the increase in deficit factor applied by the state,” Gobin said.

“After we applied it, the third year deficit was much higher than $19.8 million, that’s why even after the board reductions are figured in and other savings we identified, we still have a negative third-year deficit of $2 million.”

Chino Valley isn’t the only district dealing with hemorrhaging budgets now that the governor has released his budget recommendations.

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