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Both the Yosemite Joint Union High School District and the Coarsegold
Union Elementary School District are in good shape financially despite
the budget uncertainties at the state level.
YJUHSD is entering the new school year with $1.3 million in reserve
and CUSD has $600,000 in reserve.
“We are very pleased to be in this situation at this time,” says Bill
McCabe, superintendent of both districts. “We have managed our funds
conservatively in the past and that has left us in a good position
to go through the state crisis.”
Both districts will be deficit spending over the next two to three
years. McCabe explains that this is like spending money from your
savings account. “We have carried a strong ending balance, much more
than required by the state, so we would have money for a rainy day
and, now, it is raining,” he says.
Districts are required by the state to keep a minimum ending balance;
both of the districts have substantially more than is required and
will be able to spend that excess to meet their needs until the state
economy turns around.
“When we say ‘deficit spending,’ we don’t mean we are spending money
we don’t have,” McCabe explains, “we are spending more than we are
taking in, but we are spending money we have been holding in reserve.”
While many schools had to lay-off employees this year, the two local
districts have not had to do this.
“We are making some budget adjustments,” McCabe says, “but so far
we have not had to impact our staff. We are reducing the amount we
are spending on supplies and we are carefully evaluating all requests
from staff to take part in professional development. We are being
cautious but so far we have not had to make deep cuts.”
If the economy turns around in the next two or three years, McCabe
believes the local districts will come through all right. “Our reserves
should carry us for two or three years if we continue to be cautious
and conservative in our spending; however, if the state budget crisis
continues beyond that, we will be faced with the same tough decisions
other districts faced this year.”
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