Enrollment dip larger than projected; state cuts feared as well

GUSTINE – With its enrollment continuing to dwindle and the uncertainty of how hard the state budget crisis will hit public education, the Gustine Unified School District has implemented a hiring and spending freeze.

Superintendent Gail McWilliams said the district received a double dose of worrisome news recently.

The October count by which enrollment is measured for the state showed a decline of 140 students from last October, McWilliams said, a steeper drop than anticipated.

“We had thought that the decline would be right around 100 students, but our enrollment dropped more than that,” McWilliams said.

She attributes the exodus of students to the collapse of the housing market and tough economic times.

“Our hope would be that as gas prices and housing prices fall that people start coming in, but we don’t have any indication of that happening at this time,” the superintendent commented.

With the majority of the district’s funding based on average daily attendance (ADA), a decline of 140 students will eventually translate into a loss of more than $750,000 a year in revenues. Typically, district funding levels are based on previous year ADA, although McWilliams said the district might be able to extend the current revenue base for one more year before the financial impact of the enrollment decline is felt.

It is also striving to increase attendance rates. Successfully increasing the attendance rate from 93 percent to the district goal of 97 percent would mean another $500,000 a year in revenues, according to McWilliams.

In the meantime, the district is also cutting expenses where possible. “We are going to try to not fill vacant positions that are not essential, and we are also going to freeze any purchases that can be put on hold,” McWillimas said. “Any dollar that we can carry over is important.”

The potential fallout from California’s growing budget deficit also carries high stakes for the district.

Governor Schwarzenegger’s proposals include reducing per-pupil funding – a plan which McWilliams said would cost GUSD more than $500,000 if enacted. He is also proposing to cut back several other education funding sources as well.

“Whether they will get all that through the Legislature or not remains to be seen, but we have to prepare for a worst-case scenario,” McWilliams stated. “If it affects us right now or later, it is going to affect us. We are going to feel this. The extent of it is still to be determined.”