County Warns Against
Deficit Spending
THE NATOMAS BUZZ | @natomasbuzz
The Sacramento County Office of Education is canceling its request for an emergency state loan for the Natomas Unified School District.
Due to the district’s improved finances, the county is asking the Fiscal Crisis and Management Assistance Team to stop its process to declare Natomas Unified a fiscal emergency.
This will remove the district from “negative” budget status.
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| GORDON |
“We are greatly encouraged by the turnaround at Natomas Unified and commend the School Board, the administration and the employees,” said David W. Gordon, county superintendent. “However, while we are canceling our request for an emergency loan, I am still greatly concerned with Natomas’ budget situation.”
The latest cash flow projections submitted by Natomas Unified show improvement, but the district’s most recent budget submission continues to show significant deficit spending in 2012-13 and 2013-14 school years and the cash flow forecast remains a concern without further adjustments.
“Due to the continued volatility in both the State and the district budgets, it is imperative that the district act now with additional spending cuts and stop deficit spending,” said Gordon. “Unless spending is curtailed through employee concessions and other reductions, Natomas could find itself facing a potential State takeover again.”
As far back as January 2007, the county superintendent said he repeatedly warned the Natomas Unified School District about the need to balance its budget. In September 2009, Gordon appointed a fiscal adviser to the district and in December 2010 started the process to secure an emergency loan from the state.
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