RUSD School Board Supports Possible Temporary County Loan

The school board unanimously approved of a potential borrowing of monies from the San Diego County Treasurer—"half a million, million tops"—to ensure the Ramona Unified School District can pay its June 30 payroll.

The support came last Thursday evening at the school board meeting in the Wilson Administratve Center after David Ostermann, assistant superintendent for administrative services, gave a presentation to the board regarding the fiscal year budget. The budget talk led to a discussion on possible “cross-year transfer” an advance on funds owed by the state of California.

"We’re looking at a small borrowing, half a million, million tops, to make sure we have the cash for all of our needs for the end of the school year," Ostermann told the board.

The administrative services superintendent said it's not for certain if the district will need to borrow money, but if the cash flow projection from the state is not correct, money will need to be borrowed for the cross-fiscal year from the County Treasurer.

"We’re not certain we would even need these dollars," Ostermann said. "We might be $40,000-50,000 to the black, however, we don’t want to be caught short. We’re not sure when or how much we get from the state."

Board member Dawn Perfect voiced concern for the financing cost of borrowing from the treasurer, but Ostermann assured the board that the payback is interest only, with interest rates "very low."

"It’s very common for districts in good times and in bad times to help with cash flow in the ebb and flow (of the fiscal year)," Ostermann said. "We need to do it ahead of time so the County Treasurer has enough cash sitting there to give us."

Board member Rodger Dohm said he was frustrated with the lack of state funding for schools, and while he supported the motion to borrow money if needed, he didn't like that the district had to resort to it.

"I can remember when this never happened," Dohm said. "What the state is trying to do... recruit dollars by basically sacrificing every student in Ramona. It’s very frustrating, it shouldn’t be that way.

The board unanimously agreed to borrow money from the County Treasurer for the cross-fiscal year, if needed.