SCUC ISD faces multi‑million shortfall after Prop A failure; district forms sustainability committee
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Summary
After Proposition A failed, the district reported a revenue reduction of about $13.2 million and appropriations reductions of $5.9 million; the administration proposed an Operational Sustainability Committee to develop multi‑year recommendations to close a projected deficit and address urgent safety and health cost pressures.
District Chief Financial Officer Moy told trustees the budget adopted in August included estimated revenue tied to Proposition A that will not materialize after voters rejected the measure. The district had budgeted $16.2 million tied to Prop A; updated figures submitted with Budget Amendment No. 2 reduce revenue by $13.2 million, reflecting $10 million less local revenue and about $2.5 million less state revenue than anticipated.
Moy walked the board through additional fiscal pressures: an understaffing/vacancy pattern that changed payroll expectations (he estimated a personnel shortfall of roughly $2.3 million), a health fund exposure that may require about $2.2 million in additional reserves after claims increased following a carrier change, and about $650,000 for emergency replacement of five stadium light poles at Steele High School that were identified as immediate safety hazards.
Because of those and other timing items, the district will only reduce appropriations by about $5.9 million in the current amendment and will show a projected deficit position that requires further action. To develop sustainable responses, the administration announced creation of an Operational Sustainability Committee (also called the cost‑driver committee) composed of staff, parents and community members; the committee will begin meetings in February and report recommendations to the board.
Board members discussed the practical need to proceed with critical safety work (Moy said contracts for temporary lighting and pole replacement are already under way) and supported broad community input for multi‑year planning. The board approved Budget Amendment No. 2 later in the meeting by unanimous vote.