Deficit Forecast Is Doubled for Antelope Valley Schools

Los Angeles County education officials said Tuesday that the deficit facing the Antelope Valley Union High School District has increased to $12.4 million, twice the level of two months ago and amounting to one-fourth of the district’s overall budget.

The projection came as county officials threatened to take direct control of the district’s finances unless the situation improves.

The moves followed the county’s rejection last week of a fiscal recovery plan prepared by the 11,500-student district. Calling it inadequate for the task, county officials ordered the district to submit a new, more detailed plan by May 21.

“Our concerns are increasing on the district having a handle on the situation,” said Deborah Simons, director of business advisory services for the county Office of Education. “The larger the problem gets, the more difficulty they will have in making cuts.”

Only two months ago, in appointing a fiscal adviser to monitor the district’s finances, county officials said the district faced a nearly $6-million shortfall in its $48-million budget: a $4.6-million deficit and the lack of a required $1.3-million reserve fund.

Tuesday’s $12.4-million projection reflected several new factors. First, county officials said the district had overestimated its student attendance this year by about 450 students, meaning the district would lose about $1.67 million in average daily attendance funding.

And second, county officials projected the district will overspend its revenues in the coming school year by $4.9 million, also adding to the total. That, in part, is because the district--over county protests--recently canceled layoff warnings to about 500 teachers.

District Supt. Kenneth Brummel said county officials have overestimated the district’s shortfall by several million dollars and predicted the current figure is closer to $9 million. However, the county has ordered the district to budget for $12.4 million in cuts for the coming school year.

Brummel said Tuesday that he could not give any specifics on how the district plans to cope with the deficit, saying district officials are still studying options. But he said widespread teacher layoffs this fall will be unlikely. He predicted that the district can find other areas to cut.

Earlier this year, district officials said they discovered the deficit, a result of miscalculations by their business staff and auditors.

Among 1,009 school districts in the state, the Antelope Valley district is one of only two that has a so-called negative certification, meaning there are serious questions about its solvency. The other is a district in the Coachella area of Riverside County, state officials said.