The beleaguered Big Oak Flat Groveland School Board of Trustees, already reeling from lawsuits, restraining orders, controversial hirings and firings and an irate Don Pedro community, now finds itself facing a ever graver problem ... money, or a lack thereof.

At a special board meeting on January 5, trustees adopted a revised interim budget reflecting a significant loss in revenue that could place the district in severe financial straits in the near future, according to Michelle Huntoon from the Office of School Services, who prepared the interim budget.

Two years ago, as a result of skyrocketing assessed valuations and declining enrollment, the district was designated a basic aid district, meaning it generated more revenue from property taxes than it would have received from the state in average daily attendance revenue.

While such a designation briefly created a windfall to the district, the recent declines in property assessment, foreclosures and tax defaults have resulted in a significant decline in revenue at a time when expenditures continue to increase.

Consequently, according to Huntoon, budget projections over the next two years indicate the district will have completely exhausted its budget reserve, even though the state normally requires that 4 percent be set aside for future economic uncertainties.

Whenever a district falls below the state mandate, it becomes designated as a qualified district and the county office intercedes in the management of district resources.

Huntoon told the board that the district has already lost around $200,000 in property tax revenue this year, with more reductions likely in future years.

“You have had significant cuts in revenue ... and must weigh your resources and priorities when planning your next interim budget,” according to Huntoon.

Board President Ian Morcott concurred, commenting, “Obviously we have some adjustments to make.”

Ultimately, the board approved the interim budget as presented by a vote of three to one, with Trustee Gloria Marler dissenting.
Trustee Mike Malloy did not attend the meeting.