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Castaic Union School District officials are planning to raise the district’s bus service fees in order to avoid restricting service, officials decided Thursday at a special meeting.
Castaic Union School District officials are planning to raise the district’s bus service fees in order to avoid restricting service, officials decided Thursday at a special meeting.

Castaic Schools Announce Layoffs, More Cuts To Come

Castaic Union school officials are hosting a series of meetings to discuss the K-8 school district’s money problems, officials said Monday.


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“In an effort to be available to as many of our parents, staff and community members as possible, we have scheduled public, community meetings to discuss the CUSD fiscal situation and to answer questions on the following dates and times,” district officials said.

District Superintendent James Gibson said the cuts have already been implemented in a variety of ways, including reductions in electricity through solar panels, landscaping, water usage and waste disposal, listed as “services,” represent about $300,000 in cuts.

An audit report detailed how internal borrowing delayed painful cuts at the elementary and junior high school district, resulting in the recently approved fiscal recovery plan for the district.

“The district’s trend of deficit spending continued where expenditures exceeded revenues,” according to the Feb. 26 report to the governing board. “The ongoing trend of increased expenditures without new dedicated revenue sources has resulted in concerns regarding the district ability to generate sufficient cash flow to meet obligations as they become due, raising concerns about the district’s financial condition.”

The governing board approved severe cuts at an emotional meeting last week in front of hundreds in Castaic Middle School’s auditorium.

School officials are cutting $4.1 million from the operating budget through: layoffs for 30 teachers throughout the district ($2.36 million); a reduction in classified staff, the equivalent of 13 full-time positions ($417,000); reductions in administrative staff expected to save more than $340,000; $50,000 in reduced transportation services; and the aforementioned reduction of $300,000 in services each year.

The district also decided to move its sixth-grade classrooms to the elementary school, from the middle school, which is expected to save a little more than $230,000.

Castaic Union school officials are hosting a series of meetings to discuss the K-8 school district’s money problems, officials said Monday.

Castaic Union school officials are hosting a series of meetings to discuss the K-8 school district’s money problems, officials said Monday.

Additional cuts were deemed necessary, and district officials are working with the teachers’ union to determine whether that will be in the form of four furlough days or another 3.5 layoffs.

“The significant factors contributing to the District’s financial condition: 1) consecutive recessionary years without sufficient offsetting budget reductions for expenditures, 2) internal and external borrowings that mask the significance of cash flow shortages, and 3) declining local enrollment of students.

The district had been using short-term borrowing from inter-fund reserves and external sources, according to auditors.

“A transfer from the Special Reserve Capital Outlay Fund to the General Fund of $4,000,000, utilized for operational purposes was needed during the fiscal period to reflect a positive ending General Fund balance,” officials said.

The audit found no significant deficiencies or material weaknesses in the district’s reporting and accounting practices; however, it did question the nature of a short-term loan.

“In order to meet liabilities as they become due, the district has determined the necessity has arisen to borrow the special tax assessment collections deposited in the accounts associated with the community facilities districts on a short-term basis in the 2014-15 fiscal year,” according to an audit by Vavrinek, Trine, Day & Co. LLP. “Consequently, this action appears to be in violation of the referenced Governmental Code.”

The move — a short-term loan that would be due in April to address a cash-flow concern — was recommended by the Los Angeles County Office of Education, Gibson said.

A separate audit of the district’s $51 million bond Measure QS, which the voters approved in 2012, was also reported at the meeting.

That audit found no disagreements with management practices, no incorrect statements and “the results of our tests indicated that, in all significant respects, the Castaic Union School District has properly accounted for the expenditures held in the Building Fund (Measure QS) and that such expenditures were made for authorized Bond projects.

The district’s outreach meetings will discuss how the drastic budget cuts are expected to impact classrooms going forward.

Starting Tuesday, March 3, the first meeting will be held at Castaic Elementary School at 8:30 a.m.; on Wednesday, March 4,  there will be a 6:30 p.m. meeting at Live Oak Elementary; on Thursday, March 5, Northlake Hills is hosting a 1 p.m. meeting; and the following week, on Wednesday, March 11, Castaic Middle School is going to host a meeting at 7 p.m.

Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.

KHTS AM 1220 - Santa Clarita Radio

Castaic Schools Announce Layoffs, More Cuts To Come

2 comments

  1. How did the district leaders let this happen? Sounds like someone there needs to be fired or put in jail.

  2. In the middle of this financial crisis, as teachers are facing lay-offs and cuts, and there’s no money to even pay the gardeners to cut the grass anymore at the school sites, does anyone know why the Superintendent, Jim Gibson, had the nerve to ask the board for 100% lifetime medical benefits for himself AND his wife, whom he employed at the district? Don’t you think as a leader…the captain of a sinking ship so to speak, he would have taken SOME kind of cut himself to show solidarity with his teachers, instead of trying to be the first one into the life boat to save himself??? The disgusting part is not even so much that he and the board got us here to begin with, but the lack of character shown in the midst of this mess. Not once has ANYONE in that district office, admitted any mistake or taken one ounce of responsibility! Where is the integrity here?

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About Perry Smith

Perry Smith is a print and broadcast journalist who has won several awards for his focused, hyperlocal community coverage in several different regions of the country. In addition to five years of experience covering the Santa Clarita Valley, Smith, a San Fernando Valley native, has worked in newspapers and news websites in Los Angeles, the Northwest, the Central Valley and the South, before coming to KHTS in 2012. To contact Smith, email him at Perry@hometownstation.com.