John Moorlach Warns of Impending Doom for CA Schools

California State Sen. John Moorlach sees a storm brewing for California’s public schools.

The Orange County lawmaker — who serves on the Senate Budget & Fiscal Review Committee and its education subcommittee, and is often credited with predicting Orange County’s 1994 bankruptcy — sounded the alarm in a report last month analyzing financial statements from the state’s 944 K-12 school districts.

More than 85 percent of the districts reported deficits on their balance sheets, which he says indicates a coming “tipping point into insolvency and receivership.”

“The Moorlach Report is a flashing caution light to almost every public education budget in California. Unless things can change quickly, taxpayers can expect new levies, and post-secondary students and parents should fear higher tuition,” according to a press release.

Here are some key findings provided by Moorlach’s office:

• About two-thirds of California’s 944 public school districts run negative balance sheets. These statements show the most distressed districts could soon reach a tipping point into insolvency and receivership.

• Of the state’s large school districts, those in severe distress include Los Angeles Unified School District, with a negative $10.9 billion balance sheet; San Diego Unified at negative $1.5 billion; Fresno Unified at negative $849 million; and Santa Ana Unified at negative $485 million, the worst in Orange County.

• Of Orange County’s 27 public school districts, only one, Fountain Valley School District, is in positive financial territory. • One bright spot is the 58 county boards of education. At least 51 of them have manageable per capita unrestricted net deficits of -$159 or less, with 14 in positive territory.

• Of the state’s 72 community college districts, only one enjoys a positive unrestricted net position (UNP).

• Cal State University’s balance sheet is negative $3.66 billion.

• The University of California’s balance sheet bleeds red ink all over the state, at negative $19.3 billion. Worse, that will double next year, to $38.6 billion, when retiree medical is included.

Read the full report here


Comments

Curriculum

Wednesday, February 27, 2019 - 21:15

For most kids, animal dissection is the part of science class that evokes an immediate sense of dread. State law even allows students to opt out of the practice if they morally object.