The Calexico Unified School District board voted Tuesday evening to own up to its financial problems with the county.
By declaring itself as qualified, meaning it may not meet its financial obligations for the next three years, it says that it wants to be a part in resolving its own problem, financial consultant Eric Hall said.
He explained that the district is in a positive financial position for the end of this year, has a “razor-thin” balance for next year and a roughly $8 million negative fund balance for the 2012-2013 year.
“It’s a critical situation that will need the district’s attention,” Hall said.
Annual expenses including attendance penalties and retirements are contributing to the negative balance.
Hall said 97 other California districts are classified as qualified and are taking steps to find a way to meet their financial obligations. He takes this as an optimistic sign.
“It can be done,” he said.
Among Hall’s recommendations are for the district to develop a fiscal recovery plan and hire a chief business officer.
Acting Superintendent Richard Fragale said self-declaration “makes everyone’s job easier, especially with the county. When we recognize we have a problem, it’s better than someone else recognizing we have a problem.”
Staff Writer Chelcey Adami can be reached at 760-337-3452 or firstname.lastname@example.org