Tentative school budget hinges on state’s plan

Lolita Harper

COSTA MESA -- The Newport-Mesa Unified School District’s 2002-03

budget, adopted Tuesday evening, can be summed up in one word: tentative.

District officials were quick to point out that the $158-million

proposed budget is subject to change when the results of a handful of

unknown variables are revealed.

“There are a lot of unknowns out there,” said school board trustee

Martha Fluor. “The big word is ‘if.”’

The biggest -- and most influential -- variable is the troubled state

budget. Paul Reed, the district’s assistant superintendent of business

services, said the preliminary budget was compiled based on the best

information available -- which is not much.

“The dilemma is: When the school board acts, it can only act on what

is reasonably certain and the California Legislature is far from

reasonably certain at this time,” Reed said.

The 2002-03 budget’s spending is up about $17 million from last year

and anticipates a moderate 1% increase in revenue from the average daily

attendance and 7% increase in property taxes.Expenses include a

previously agreed upon 3.5% compensation hike for certified employees and

a 2.5% increase for classified positions, Reed said. The district must

also account for the ever-increasing cost of benefits, an item that has

risen 22% over last year’s budget. One-time expenses, such as equipment

replacement and technology updates, are also included, Reed said.

The tentative budget shows expenses slightly more than revenue at $3.2

million, but Reed said the district would be able to balance that with

$10.1 million in unspent funds from last year.

Reed said the 2002-03 budget is a conservative “snapshot in time.”

Although times are uncertain, the budget is balanced and there are no

cuts in programs.

“This budget continues the level of service that people are accustomed

to and improves it wherever possible with some prudence,” Reed said.

If a second word were needed to describe the budget, it would be

“conservative.”

Reed said the budget does not presume any income that the district

does not know will be there. It also presumes that every expense in the

budget will be spent -- which is almost never the case -- and still

forecasts a reserve of $6.9 million, he said.

Flour said she is comfortable the district is not headed for crisis.

The trustee said the looming state problems worry her because of the

potential effect they may have on the state as a whole but is confident

Newport-Mesa schools will weather the storm.

The district operates under a “dual adoption cycle” and will revisit

its financial forecast in September with a more realistic picture, Reed

said.

“Lots of things will change by the time the final budget is presented

for adoption in September,” Reed said.

The school board also approved the district’s tentative budget,

totaling a bit more than $144 million. As it stands, the budget is

balanced with expenditures of less than $143 million.