Education:
Number of Fiscally Troubled School Districts Increases

The number of fiscally troubled school districts in California has increased 38 percent over the January 2009 figure, according to Jack O'Connell, superintendent of public instruction. There are now 174 districts on this list, which serves as an early-warning barometer for schools. This represents 16 percent of all school districts in the state.

Most are on the "qualified" list, which means they may not be able to meet their financial obligations in 2011-12. A few (14) received a "negative" certification, which means they may not be able to meet their financial obligations in 2010-11.

Several of the state's largest districts are on the "qualified" list. They include Oakland Unified, Los Angeles Unified, Santa Ana Unified, Elk Grove Unified, Sacramento Unified, and San Juan Unified.

The 14 districts that received a negative certification are:

Number	County	Local Educational Agency	Total Budget ($)
1	Alameda	Hayward Unified	209.83 million
2	Contra Costa	John Swett Unified	16.04 million
3	Lassen	Westwood Unified	3.11 million
4	Los Angeles	Lynwood Unified	148.65 million
5	Mariposa	Mariposa County Unified	19.36 million
6	Sacramento	Natomas Unified	77.54 million
7	San Benito	Aromas/San Juan Unified	10.69 million
8	Santa Clara	Franklin-McKinley Elementary	81.44 million
9	Santa Clara	Orchard Elementary	6.13 million
10	Solano	Travis Unified	41.32 million
11	Solano	Vallejo City Unified	144.16 million
12	Sonoma	Cloverdale Unified	12.84 million
13	Sonoma	Cotati-Rohnert Park Unified	52.02 million
14	Sonoma	Healdsburg Unified	19.59 million

Mr. O'Connell blamed the growth of the list on the budget crisis. However, Sacramento Bee columnist Dan Walters pointed out: "And while 16 percent of the state's 1,077 school districts have been declared in distress, unable or nearly unable to meet their financial commitments, 84 percent of them have done what they needed to do to keep themselves afloat. All districts operate under the same laws that specify their revenue streams. Most have adapted to the constrained circumstances while others haven't, for reasons known only to themselves. The fact that many of the distressed districts are big-city systems, such as gigantic Los Angeles Unified, may be a clue, since they tend to have bloated administrative structures and powerful unions that control the school trustees they elected."

The 10 largest districts not on the list include San Francisco Unified, San Jose Unified, San Diego Unified, Fresno Unified, Long Beach Unified, and San Bernardino Unified. (Sources: Department of Education press release, June 29; The Sacramento Bee, June 30.)

Cal-TaxReports, July 6, 2010

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