The answer to questions about the district’s financial situation depends mainly on who you ask and which version of the Pacifica School Board’s reports you reference. As of this writing, the deficit is stated at $3.4 million, but this number has fluctuated across different publications. The lack of consistency is concerning.
In December 2024, the district stated it was in a “positive” financial position for the next three years. However, by January 2025, the narrative abruptly shifted to dire financial shortfalls requiring urgent school closures. Independent analysts have raised questions about discrepancies. When financial figures keep changing without adequate explanation, it breeds confusion and erodes trust in the district’s financial management abilities.
Key concerns flagged by independent analysts include:
- Calculation Errors: A $200,000 overstatement of the deficit for the next two years skews the reserve percentage – a critical metric used to justify the rushed vote.
- Unexplained Budget Increases: Between the December 2024 first interim budget report (which certified the district as financially positive) and the preliminary second interim report in January 2025, projected expenses jumped by $1.2 million annually. No justification has been provided for this significant change.
- Implementation Costs: The district’s scenario projections focus only on cost savings from reducing staff without acknowledging the additional costs associated with implementing the closures. How will all OSS and Vallemar’s 6-8 students be relocated without incurring extra expenses?
- Potential Enrollment Loss: Due to the uncertainty surrounding these changes, there’s a significant risk of decreased enrollment. Pacifica currently attracts out-of-district students, but the proposed closures may discourage transfers. For instance, a 10% drop in enrollment across the district would result in a $1.7 million revenue loss over three years. It’s unclear whether the district has accounted for this potential shortfall.
These unanswered questions underscore the need for greater transparency and comprehensive financial analysis before making such impactful decisions.