The Los Gatos Union School District is facing a projected $1.3 million budget deficit during the 2012-13 fiscal year, trustees, parents and teachers learned Tuesday evening during a crowded board meeting at district headquarters.

Assistant Superintendent of Business Services Leslie Paulides said projections suggest that the district will run deficits and deplete its reserve by the 2014-15 fiscal year, unless changes are made.

She gave trustees the following facts:

• The district budget is approximately $26 million annually with a projected deficit of $1.3 in 2012-13, increasing in future years
• Enrollment is up slightly
• Spending per pupil is down
• California is in the bottom five states for per student funding (average spending per student nationally is $11,700 versus California at $8,700 and Los Gatos at $8,600) 
• Proposed scenarios for reducing deficit spending include lowering expenditures and/or passing a new parcel tax (current parcel tax is set to expire in 2014)
• Actual property tax revenue came in slightly above forecast in December of this year
• Current parcel tax and the Los Gatos Education Foundation contribute $3.4 million annually to the district budget
• $22 million of the district budget provides funding for salaries and benefits for teachers and staff (82 percent)   

Board member Scott Bloomfield said that in 2006-07, the district received more than $3 million in state funding, or approximately $1,000 per student and that state funding has been reduced dramatically to $403,000 or $130 per student for the current year. 

Former Fisher Middle School Music Booster President and district parent Bill Gallmeister spoke about the value of music education for the kids and urged the board to support the music program.

Fisher Middle School history teacher Barry Siebenthall asked for adequate compensation because “teachers are doing more for less than in past years.”

One parent urged the board to "call upon the vast volunteer force in Los Gatos" to run much needed programs that couldn't be funded.

Superintendent Diana Abbati sent a message to all district parents this week outlining the current budget dilemma and encouraging the public to attend board meetings and add to the discussion of possible solutions. 

She stated that “the budget shortfall specifically comes from a reduction in local, state and federal funding sources as well as an increase in the cost of maintaining our programs.”  

Abbati said that there will continue to be great uncertainty with respect to Gov. Jerry Brown's proposed budget cuts for education over the next 10 months. The state’s contribution to the district has already been reduced from $1.2 million last year to $403,000 for the 2011-12 school year, according to district figures. 

Abbati also said that state law mandates that teachers be informed by March 15 if they will continue to be employed in the upcoming school year. To date, she said that property taxes are not rebounding as quickly as expected and that this is the district’s major source of funding. 

Other issues discussed during the meeting included:

Assistant Superintendent of Curriculum and Instruction Bitsey Stark presented preliminary results from the annual parent and teacher district survey. She said that 53 percent of district parents and 72 percent of teachers responded to the survey. 

A majority of the parents and teachers completing the survey said that they were very satisfied with the district. The top priorities for schools by both parents and teachers were small class sizes, literacy support, physical education, music, math enrichment and technology integration. A complete report will be available at the Feb. 28 meeting.