Glendale Unified is spending more money than it’s bringing in, officials say

Glendale Unified is spending more money than it’s bringing in, and school officials say if they don’t reverse the trend, the district could spend all of its General Fund reserves by the 2019-20 fiscal year.

During a recent school board meeting, officials said they predict they’ll spend about $284.5 million out of the district’s General Fund while only making about $274.3 million in revenue during the current fiscal year, which began on July 1 and ends June 30.

If school officials continue to spend more than is brought in, the district could report a negative General Fund balance of $12.8 million in about three fiscal years, according to Karineh Savarani, director of financial services for Glendale Unified.

“Basically, the district will not be able to meet its financial obligations if this negative amount in [2019-2020] is not rectified,” Savarani told officials during the meeting.

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Currently, Glendale Unified has about $34.8 million remaining in its General Fund, she added.

In response to the district’s ongoing deficit spending, Cheryl Plotkin, interim chief business and financial officer for Glendale Unified, has been meeting with administrators to find ways to reduce spending and drive up revenue.

One suggestion she’s gotten from employees involves increasing students’ average daily attendance by half a percentage from 96% to 96.5%.

That slight growth could mean $100,000 more in revenue from the state.

Also, increasing fees charged to outside groups to use school facilities by 10% would bring in $15,000 more annually.

Some suggestions for reductions include lowering schools’ individual budgets by 10%, saving utility costs by housing summer school at one site instead of multiple locations and reducing hard-copy mailings to parents.

Those three actions combined would save the district $245,446 each year, according to a report.

Glendale school officials must still address other budget issues in areas where spending continues to increase.

One area they’re grappling with is the state’s mandate that districts pay more into the retirement system for classified and credentialed employees, which now costs Glendale Unified $2 million more annually, Plotkin said.

Funding for the district’s special-education department also continues to climb, with $56 million coming out of the General Fund for the program each year.

The current document Plotkin helped draft, with suggestions from principals and district administrators, has identified $4.6 million to potentially slash from the budget.

The document is a work in progress, she added, one that will be refined by the time the district adopts its 2017-18 budget in June.

Plotkin also plans to gather input from the unions representing classified employees and teachers.

“It’s a pretty urgent discussion,” she said.

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Kelly Corrigan, kelly.corrigan@latimes.com

Twitter: @kellymcorrigan