ORANGE : Tentative School Budget Adopted

With some officials concerned about the financial future of the Orange Unified School District, board members adopted a tentative budget last week in which projected revenues exceed expenditures by a narrow margin of $1 million.

The district’s tentative $105-million budget includes nearly $3.4 million in funds carried over from this year, enough to allow the district to meet state Department of Education guidelines that require districts to maintain a 3% reserve fund.

The district projects more than $102 million in revenue and about $101 million in expenditures in the coming fiscal year, creating but a thin surplus. During budget discussions, some board members and staff have said that $1 million might not be enough to guarantee the district’s financial stability, but the reserve fund is intended to help protect the district in the event of unforeseen budget needs.

The budget is based on a projected average daily attendance of 24,225 students, an increase of just 10 from the current year.

Local taxes and funding from the state make up about 70% of the district’s income, said Lisa Howell, the district’s director of fiscal services. The district is counting on receiving a 3% cost-of-living increase from the state, or an additional $89 per child. About $4.5 million in lottery revenue is also expected.

Employee salaries and benefits account for 67.5% of the district’s costs, or about $88 million.

The board will discuss possible additions to the budget at a study session Thursday. Among the recommendations to be considered are programs to improve the student-teacher ratio and increase school allocations by $30 per student. Combined, those would cost about $1.65 million.

The study session will begin at 6 p.m. Thursday at the district offices and is open to the public. The tentative budget must be approved and submitted to the office of the Orange County superintendent by July 1.