LEUSD Still Facing Financial Challenges

The Lake Elsinore Unified School District may not be able to meet its financial obligations in upcoming years, it was reported this week.

The California Department of Education released its First Interim Status Report for 2012-13 and it shows the LEUSD and 123 other local educational agencies are still facing financial challenges, despite improving conditions.

The district received a “qualified certification” mark from the state. The grade is assigned when a local education agency may not be able to meet its financial obligations for the current or two subsequent fiscal years.

School districts are required by the state to project where they are going to end up as of June 30, 2012, and project the next two fiscal years through June 30, 2015, explained LEUSD Assistant Superintendent of Fiscal Support Services George Landon.

The LEUSD is looking at a projected deficit in the 2014-15 school year, he confirmed.

“This is based on many assumptions and using current financial variables,” Landon said. “Many of our assumptions will change along with the funding received from the State by the time we get to 2014-2015.”

In the near term, the district is balanced.

“Based on these assumptions, LEUSD is good for 2012-2013 and with some adjustments for 2013-2014 the district will be balanced,” he said.

Landon pointed to a lack of state funding as a reason behind the financial uncertainty.

“It is important to note that the state is continuing to not fund education at the Proposition 98 levels in these economic times,” he said.

California’s Proposition 98 requires a minimum percentage of the state budget to be spent on K-12 education and guarantees an annual increase in education funding.

The LEUSD was not the only local school district to receive the qualified certification mark from the state. Hemet Unified, Menifee Unified, Murrieta Valley Unified, Perris Union High and Temecula Valley Unified school districts were among the 12 in Riverside County that received the qualification.

Seven school districts in the state received a negative certification, which is assigned when an agency will be unable to meet its financial obligations for the remainder of the current year or for the subsequent fiscal year. None of the districts were in Riverside County.