Schools’ emergency fund depleted

Terry Webster

Monday, Nov. 12, 2001 | 9:31 a.m.

The Clark County School District has enough cash in its emergency funds to operate for 2 1/2 days, if all other revenue sources are interrupted.

The revelation that there is $11.6 million set aside for emergencies surprised School Board members during a budget workshop session Friday.

Board members noted that they wouldn't dream of running their households with that little to fall back on.

The district's rainy day fund has been depleted year after year as growth has outpaced revenue from the state, board members were told.

Now the district faces the need to cut $3.2 million from the current school year's $1.2 billion budget.

"The day of reckoning is here," Chief Financial Officer Walt Rulffes said.

Since 1998 the unreserved fund balance -- the official name for the emergency fund -- has dropped $7.6 million, from $19.2 million to $11.6 million.

Any significant expenses not currently accounted for -- like an employee arbitration award -- could break the bank.

Most of the cuts needed for this year will come from accounts payable and administrative staffing, board members were told, although an exact plan is not yet complete.

With the first quarter just ending, no more school supplies will be purchased or positions filled, School Board members were told.

Officials did say that any staffing cuts -- 150 or more are possible -- will be made in the central office, not schools.

District officials do not expect any layoffs. Rather, the cuts will come through attrition or leaving vacancies unfilled.

Superintendent Carlos Garcia cautioned the School Board to brace itself for a flurry of lobbying that will come when certain areas are targeted.

An unpopular discussion on cutting arts or athletics also is expected to arise.

The cut is being forced by revenues that came in lower than expected -- $1.8 million in property taxes, $5 million in the motor vehicle privilege tax and $1 million for the distribution of local revenues to charter schools.

Board member Ruth Johnson said she couldn't recall ever making significant additions to any budget over the past five years.

"All we ever have done is cut," she said.

Board members said they want to see the purse strings opened.

The cry of no money is becoming "like a broken record," board member Larry Mason said.

But at least one person is questioning the district's own claims of no money.

"I'd still like to have our accountants go over the books," said Mary Ella Holloway, president of the teachers union.

Holloway, new to the union presidency this year, is facing a membership frustrated by growing class sizes and rising health insurance costs. The district, the country's sixth largest, has about 14,000 teachers and 246,000 students.

"It's not looking good at all," she said of the district's financial future.