From the daily archives: Tuesday, March 20, 2012

By Mario Conde

The Calexico Unified School District accepted the second interim report at their special meeting last week.

The District’s Second Interim Report consist of current year financial statements and budgets for all funds, as well as the required State reports. The report entails estimates, representing the districts best projections of the current date.

The Financial report was presented by Mei Randle who reported on the current state of the district’s finances and the projected financial projections for the next three years. Randle spoke about the mid-year trigger cuts to revenue limit imposed by the State of California of $54.32 per Average Daily Attendance (ADA). The reductions to ADA are $480,255.

Randle said that at the first interim report, the district was projecting a net loss of 2,180,255.42 as a result of the adjustments but the second interim report reflects a net loss of $1.5 million dollars. The unrestricted General Fund Balance is projected at $9,637,223 and of this amount, $2,571,029 is the State Required 3% reserved. This includes all of the 89 teachers that are going to be layoff by the end of this school year.

The District was awarded a deferral waiver in the amount of $1.8 million; however, the District is facing a $3 million cash shortfall at the end of this fiscal year, and an even larger shortfall of for the fiscal year 2012-13. The District has applied for the June 2012 apportionment waiver in the amount of $4.3 million but it’s not guaranteed, she said. The District anticipates using outside short-term financing through a Tax Revenue Anticipation Note to accommodate the current year shortfall.

“One of the most important elements of the second interim report is the three year projection for the General Fund. The purpose of this project is to report to our Stakeholders on the fiscal viability of the District.”She said.

The revenue limit assumptions are based on date provided by the ICOE and form the School Services of California Databoard which estimates for the district’s current and future year revenue limit calculations.

Randle also spoke about the Governor’s budget that includes revenues to be raised through the passage of a ballot initiative in November, which will raise the income tax on high-income earners and increase the sales tax. She said that if the initiative passes, per pupil revenue will be flat-funded for the 2012-13 fiscal years. If the initiative fails, however, there will be automatic mid-year cuts would impose an additional 7.4% cut on K-12 education estimated at $370 per student. This will amount to $3.2 million cuts to the district annually.

The Board accepted and approved the second interim report having Joong Kim voting against it.

 

By Mario Conde

The Calexico City Council adopted a resolution declaring the City Council’s support to the improvements and construction for the new port of entry.

The resolution of the City Council supports efforts to obtain Federal funding and efforts to effectuate a public/private partnership to achieve a more timely construction of the improvements with the new Port of Entry, Calexico West.

The Department of Homeland Security and General Services Administration have recognized the need to modernize the Calexico POE for some time. GSA has expended $25 million since 2005 designing and planning upgraded POE facilities and most the required land has been acquired. The GSA has proposed a reconfiguration and expansion of the existing POE that would include the creation of new pedestrian and private vehicle inspection facilities consisting of sixteen northbound booths and three southbound booths, 32 secondary inspections stations, and 240 parking spaces.

The funding for the project has been put aside due to the current fiscal crisis at the Federal level and has forced Congress to cut spending in many areas.

“The City needs to make all possible efforts to urge the Federal government to move forward with this project in a timely manner. This should be the City’s first priority.” City Manager Oscar Rodriquez said.

The City will also support a possible Public/Private partnership to finance and construct the POE has been proposed. Under this proposal the City of Calexico and the County of Imperial, working with a highly qualified private partner, would build finance a new POE on a turnkey basis of the Federal government in accordance with GSA plans and specifications. The Federal government would then enter into a long term lease arrangement with the City, County and its partner to repay the investment.

“The proposed utilization of a public-private partnership to bring the proposed Calexico POE to fruition may be an effective and cost-efficient way of addressing an important infrastructure need in this time of fiscal limitations. This project will create new jobs, save existing jobs, and provide significant economic impacts on the City of Calexico and Imperial County.” Rodriquez said.

 
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