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| Office of the Chancellor / Public Affairs |
Thursday, March 11, 2004
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Los Angeles Daily News 3-11-04 LAUSD looking to erase extra $61 million |
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| Hoping to avert a downgrade in the Los Angeles Unified School District's financial rating from the county's Office of Education, school board trustees are expected to ask Superintendent Roy Romer today to come up with an additional $61 million in budget cuts by the end of March. While they're also expected to approve most of the $418 million in cuts Romer has already proposed, they say more are needed to keep the district from risking lower bond ratings and higher interest rates. The current $550 million shortfall has prompted district leaders to consider submitting a "qualified" certification to the Los Angeles County Board of Education when that report is due April 15. But district trustees hope these additional cuts will convince the county to let the LAUSD keep its "positive" certification -- the best a district can earn. "I do think we have to send a strong message that we are a decisive board," board President Jose Huizar said. "It's a plan. It's not definite. It's not detailed, but at least we're taking steps." A "qualified" rating could prompt the county to require the LAUSD to work with a county financial expert, undergo a state audit or obtain permission before it issues certain types of debt. But Romer said a "qualified" certification would not result in substantially higher costs to issue new bonds. He added that if the board approves his $418 million package and makes plans to close the remaining $60 million gap, he's confident the district can still submit and maintain a positive rating from the county. "I think, provided we do our work (today), I think we can file the interim report with a positive statement," he said. Romer's $418 million package of budget cuts includes eliminating about 500 nonteaching jobs. His proposal also includes: saving $144 million by refinancing debt and redistributing capital project funding, $72 million from shifting general fund costs to other funding sources, $61 million from reducing employees' work hours and $71 million from school-site savings. Finding an additional $61 million to cut will be tough, Romer said. "It's a very, very tough deal, and we're going to get it done," Romer said. "There needs to be some realism about how much more you can knock off ... We've got some real challenges." More positions will have to be eliminated, but Romer said he doesn't know how many. In a proposal submitted Wednesday by Huizar, as well as trustees Julie Korenstein and Marlene Canter, 21 nurses, counselors and other health care workers that Romer had proposed cutting to save about $1.8 million would be kept. And $3.5 million would be added to expand school police coverage at middle and high school campuses. "This was ... a proposal to get the guts of what we have to do in a way that unites us," Canter said. Trustee David Tokofsky said the board is rushing the decision and overblowing the ramifications of a qualified rating. "There's always politics in government but this is a massive upsurge," he said. "It's the tale of certification and wagging the budget dog." |
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