WATSONVILLE—The Pajaro Valley Unified School District Board of Trustees on Wednesday heard a grim budget report which, while it shows that the district can cover its expenses for the next three years, it also predicts that declining enrollment will severely drain its general fund.
PVUSD Chief Business Officer Joe Dominguez said the district is taking “a deeper dive” on the issue, looking at why it is happening and studying ways to slow the decline, including launching an enrollment campaign.
At the same time, Dominguez said that the declining enrollment comes largely thanks to Watsonville Prep, a charter school that opened in August.
The school began with kindergarten through second grade and plans to add one grade per year until it has an eighth grade. The school’s charter calls for a total of 420 students when fully operational in 2023.
Dominguez said that the school will take an estimated 57 students from the district every year, which means an additional annual revenue loss of about $670,000.
If the problem continues, Dominguez said the district might have to “align staffing to the decline in enrollment,” a phrase that could mean reductions in the number of teachers.
But Dominguez cautioned that it is not yet clear how that will play out. About 100 teachers per year leave due to attrition, he said, which could help make up for the loss of positions.
The California State Board of Education approved Navigator’s charter petition in January, after both PVUSD and the Santa Cruz County Board of Education denied it.
State law requires districts to give approved charter school facilities within their boundaries. Navigator in April accepted placement at E.A. Hall Middle School in 13 portable classrooms.
Navigator has requested an additional two classrooms at the school, which Dominguez said will cost an additional $600,000, although that number could change.
The charter organization is also asking for a playground, but it is not yet clear who would pay for it.
“We will negotiate with Navigator of what costs they can incur, and what costs the district will incur,” Dominguez said. “Potentially Navigator may be able or willing to pay for a portion of it or all of it.”
Trustee Kim DeSerpa called the request “frustrating,” and added that Navigator in its initial presentation said they would not ask for district property.
Dominguez said that Navigator is looking at other facilities. If they select an off-site location, the district would not be responsible, he said.
DeSerpa also said that the school is not compatible with E.A. Hall.
“It’s a middle school,” she said. “It should not hold elementary school children.”
The first-interim budget report is a required review of how the three-year budget adopted in June looks through Oct. 31.
In a prepared statement, Navigator CEO Kevin Sved said that providing parents high-quality public charter school options is “an important part of California’s public school system.”
“Public funding follows the students which does have an impact on district revenues,” he said. “However Watsonville Prep School, as a public charter school takes on the responsibility of providing the education for the student which does relieve the district of this responsibility and associated costs.”
