August 2 Board Meeting Part III
Financial Challenges
An apparent lack of financial experience on the school board
Julie Hamill, a Palos Verdes Peninsula Unified School District (PVPUSD) board member pointed out in a board meeting that the board needs members with financial expertise. She encouraged candidates with fiscal experience to run for the board in the next election in 2024. She emphasized that the PVPUSD will soon be facing financial challenges and the district needs fiscal guidance and experience.
The district’s budget is approximately twice the amount of all Palos Verdes cities combined
To put this in perspective the four cities within the PVPUSD have a combined budget of approximately $74 million for 2023-2024. The budget posted on the PVPUSD website for 2023-24 is $141 million. The budget posted for 2023 did not include the recent contract agreement with the Palos Verdes Faculty Association, which will add significant expenditures. Actual district expenses since 2019 have exceeded $150 million annually. The district budget will be about twice that of the combined Peninsula cities.
Does the board have sufficient financial experience?
The current board members tasked with managing this large amount of public funds include a lawyer, dentist, retired high school teacher, pharmaceutical industry professional, and college admissions editor. These are noble professions, but none of them had experience effectively managing a $150 million budget. The board needs a member with a fiscal background, experience, and ability to provide leadership and guidance in this critical aspect of managing a school district.
No shortage of future challenges
The district faces mounting costs to address constant infrastructure maintenance expenditures on its 16 campuses, increasing labor expenses and possibly capital improvements. The district’s primary source of revenue comes from the state and is based on average daily attendance (ADA). The district’s ADA has been declining for the last 10 years. Enrollment in 2011 was 11,803 and in 2022 it was 10,420. The future trend is uncertain.
In March 2020, the school board put Measure PV on the ballot. It needed 55% of the vote to pass. It received only 38% because the voters felt the total cost of $779 million (including interest payments) was unreasonable and the measure was filled with things that were wanted, but not needed. The board and the Facility Advisory Committee have hinted at a new bond measure in the future. If voters overwhelmingly rejected a bond measure three years ago before this controversy existed, the chances of passing a new bond are remote.
In 2022, Sacramento was generous with funding school districts due to a surplus. But in early 2023, the state forecast a deficit year. The impact on school district funding is uncertain. Making all the fiscal pieces fit will be a challenge. PVP Watch points out these revenue realities because this current controversy unless resolved, will only make it more difficult to fund our district in the future.
PVP Watch’s opinion is that Hamill’s observation is spot on - the board needs a member with strong financial management experience.
We will publish a follow-up article on the financial health of the district. We will notify you when this happens.
PVP Watch welcomes your comments
PVP Watch welcomes your comments and feedback on this topic. The community’s input is important for us to understand your concerns. Please send comments to info@pvpwatch.com by clicking this link.