Newport-Mesa school board approves budget

Newport-Mesa Unified school board members have approved their annual budget, a $235.9-million spending plan that was characterized as prudent and balanced, but still subject to local market and state funding woes, according to Deputy Supt. Paul Reed.

While the district counts on $59 million in restricted funds for categorical programs such as special education and class reduction — most of it state money — local property taxes cover nearly the whole $176.9-million unrestricted portion.

So, while “storm clouds are still on the horizon,” as Reed puts it, for state education funding next year, California’s recent budget impasse played only a minor role in the district’s funds.

The district anticipates a 3.7% drop in student enrollment, which in turn leads to a savings in staffing costs.

District salaries also rose to remain competitive, which is more expensive than what state funding would support.

The cost difference is called “encroachment,” and the district’s unrestricted funding covers salary and categorized program encroachments.

The district projects its budget as more than 3% solvent, surpassing state standards and leaving room for the fickleness of Sacramento’s purse strings.