SAN JUAN CAPISTRANO : No Cuts in Schools Despite Short Budget

The Capistrano Unified School District released a tentative budget this week for the 1990-91 school year showing a shortfall of nearly $6 million.

However, no program cuts are planned for next year, said Carole Bailey, the district’s fiscal services director.

“This is only a tentative budget. This district is in good financial condition,” Bailey said. “We are not looking at any program cuts, but we won’t be buying as many widgets this year, which we have been doing the past two years.”

The tentative budget figures show it will cost $109.4 million to operate the district, including a 4% outlay to the district contingency fund. Projected revenues are estimated to be about $99.1 million, about $4 million of which comes from the state lottery.The difference will be made up out of the district’s contingency fund, Bailey said.

“That’s one reason we have kept a good contingency fund,” said E.G. (Ted) Kopp, a 15-year district trustee. “But you can’t keep going to it every year.”

District revenues are based on receiving a projected $2,999.84 per student from the state, a 3% increase over this year, Kopp said. The district, with 26,000 students, is the third largest in Orange County.

About 85% of the district’s budget goes to pay employees salaries and benefits, a percentage that remains constant each year, Bailey said. The largest increase in expenditures for the district will be in the costs of employee health benefits, Bailey said. The cost of health benefits jumped 31% this year and may increase another 30% next year, she said.

A public hearing on the final budget is scheduled June 18.