On February 8th, 2011 Scotts Valley Unified School District filed a Qualified financial condition report. A Qualified certification as signed by Superintendent Dr. Susan Silver states:
As President of the Governing Board of this school district, I certify that based upon current projections this district may not meet its financial obligations for the current fiscal year or two subsequent fiscal years.
The areas where the district did not meet its obligations include (for definitions of each area refer to the document linked above):
- Other Revenues
- Other Expenditures
- Deficit Spending
- Fund Balance
- Temporary Interfund Borrowings
- Long-term commitments
- Postemployment Benefits Other than Pensions
The three year projection as required by the state predicts the following shortfalls:
Given salaries account for the vast majority of spending it’s difficult to picture a scenario where additional cuts won’t dramatically affect the number of teacher’s the district can employ.