CARLSBAD: School district expects more money next year

District will use extra $7.8 million to undo some budget cuts, increase savings

By STACY BRANDT - Staff Writer | Monday, June 30, 2008 11:36 AM PDT ∞

CARLSBAD ---- School officials are expecting to have more money than they originally thought in the new fiscal year, thanks in part to increasing property tax revenues.

All told, the Carlsbad Unified School District added $7.8 million to its 2008-09 fiscal year budget, said Walter Freeman, assistant superintendent in charge of business services for the district. The fiscal year starts Tuesday.

Trustee Kelli Moors said she was thrilled with the news.

"It was unexpected, especially in light of the budget crisis," she said.

The school board approved the new $85 million budget at a meeting last week. At that meeting, the board agreed to set aside $2.5 million in a rainy-day fund and use $2.1 million to undo some of the budget cuts they made last month. The rest will be set aside for possible costs related to raises, hiring and maintenance.

The district has still cut about $2 million worth of expenses from its 2008-09 budget, but that is far less than the $5.6 million in cuts trustees initially approved last month.

The $7.8 million budget boost mostly comes from increased property tax revenue, which added up to $1.6 million for the 2007-08 fiscal year and an estimated $3.1 million for 2008-09 the fiscal year. The rest of the money is the result of the remaining budget cuts and donations to the district.

Last month, the state officially designated Carlsbad Unified as a "basic aid" district, which means it brings in more money from property taxes than it would through the state's attendance-based funding system.

The district can keep whatever money comes in above the typical per-pupil amount that most districts get.

Because the redesignation happened so late in the fiscal year, the $1.6 million from last year's property taxes will go into the 2008-09 budget.

Across the state, only a small percentage of districts bring in enough money from property taxes to qualify as "basic aid" districts. Along the cost, districts in Cardiff and Encinitas have had the designation for the last couple of years.

Freeman said he expects the 10,350-student Carlsbad Unified to bring in even more property tax money in the future, especially if the housing market rebounds.

"Ten years from now, we'll be much better off as a basic aid district," he said.

Still, because the increased funding isn't always guaranteed, it's vital for "basic aid" districts to have plenty of money in savings, even in times when they're making budget cuts, Moors said.

"I think the superintendent's recommendation to put over $2 million in reserve is very prudent and far-sighted," she said. "But it's very tempting to everyone, including myself, to want to spend it."

Contact staff writer Stacy Brandt at (760) 901-4009 or sbrandt@nctimes.com.