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Errors lead to a decrease in school district budget reserves 

—Paso Robles Joint Unified School District has recently had to lower its reserves to 5.63 percent in December due to an attendance calculation error and an incorrect expense documentation from the 2013-14 school year. While the state requires only a three percent reserve, the district keeps a high reserve to prevent less impact on the district’s progress in case of a bad economic environment, according to reports.

The district has an annual budget of $74 million and aims for a ten percent reserve, which are general fund dollars not expended in the budget and used for economic emergencies. The total amount of decreased reserves from 2015 to 2018 dropped from $6.3 million to $4.7 million, a difference of $2.6 million. The district’s reserve is currently over six percent, as of Feb. 5, and will make a one to three percent increase during the school year.

One of the reasons for the decreased reserve is that the district’s attendance report projected incorrect numbers and therefore will receive $1 million less in state funding. As of today, there are 7,004 students enrolled in the district. This is an increase in enrollment of 482 students since 2014 and the first time in years that the district has shown tremendous growth.

A California Department of Education audit for the 2014-15 and 2015-16 school years showed disallowed expenditures in the food services fund. $380,000 was taken from the general fund to cover that expense which is being repaid thru the culinary program. In addition, an overpayment from the state in the amount of $860,000 in the 2014-15 school year, based on the 2013-14 school year, was documented incorrectly and recorded for several years.

Superintendent Williams has taken over all of the day to day operations of the budget and will continue to report on the cash flow and progress to the board of education. Although this is a temporary setback, Williams continues to be extremely optimistic and has already increased reserve to over six percent. District staff nor any programs will be cut or reduced and top-notch programs and facilities are moving forward, according to Williams.

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The news staff of the Paso Robles Daily News wrote or edited this story from local contributors and press releases. The news staff can be reached at info@pasoroblesdailynews.com.