Once again, California has made its budget and cash problem your problem! While California’s economy is experiencing a recession due in large part to the COVID-19 pandemic and subsequent shut down of businesses, billions of dollars in deferrals layered upon school districts, charter schools, and county offices of education will make it challenging to manage cash flow.

The COVID-19 pandemic is a health crisis that is having a profound impact on nearly every aspect of our daily lives. The disruption caused by the pandemic is severe, but short-term; while decisions related to when, if, and how to re-open schools could have long lasting employer-employee relationship consequences. Local education agencies must work closely with their labor partners to address mandatory subjects of bargaining.

Enrollment and staffing challenges cannot be addressed in isolation, and involve collaborative partnerships between the human resources and business services departments. Before the corona virus pandemic hit, more than half of all local educational agencies struggled with declining enrollment. Additionally, the slowdown of the cost-of-living adjustment (COLA) for revenue increases in the Local Control Funding Formula (LCFF) had already begun. While the hold harmless on this year’s LCFF revenues from the state and the allocation of the COVID-19 Response Funds are significant, most LEAs, if not all, are spending more than what they had budgeted in order to provide distance learning and meals to students while also managing the reopening of schools.

Educational leaders in California have an opportunity to leverage our state funding for the programs and services that we value most at the local level. The supplemental and concentration grant funds can have broad application to support our children with the greatest needs. And, after several years of significant funding increases, today’s decisions are even more critical as revenues have flattened and resources for ongoing programs have become scarce, not to mention the reintroduction of cash deferrals. One-time federal funds are a temporary respite, but must be used with care. Combining all of that with school closure and re-opening as a result of COVID-19, local agency finances are more challenging than ever.

School Services of California, Inc. and the Fiscal Crisis and Management Team (FCMAT) have teamed up to provide a free online workshop on fiscal solvency.

The number one area for findings in an audit report are those in the area of Associated Student Body. It is critical that district—and site—level staff receive training in this area on a regular basis to ensure that the district, as well as the employees, are being protected.