Why does the district need to make structural changes to address the operating deficit?
A. Fundamentally, it is because salaries and benefits are increasing far beyond the cost-of-living adjustments (COLAs) we have received from the state. The district did not receive any COLA from the state in the current fiscal year, and does not expect to receive any state COLA for 2009-10 or 2010-11 as California faces its own budget crisis. As a result, the district is using one-time dollars to cover increases in salaries and benefits, and to delay layoffs. This is not sustainable into the future.
Related Questions
- How is a structural deficit different from an annual operating budget deficit that we would experience if we did not reduce spending to make up for state funding cuts and investment losses?
- What policies should the state enact to address the continued structural state budget deficit?
- Why does the district need to make structural changes to address the operating deficit?
