Good news!  In less than one week, PUSD's deficit has dropped over $6.7M.

The California Department of Education has posted on their website the release of the first 50% of funds from the federal stimulus package (ARRA-SFS*).  PUSD will receive $4,244,533 to offset state cuts to "general purpose funding."

A similar amount, designated for "categorical funding" will be available in June.  The $4.24M is in addition to $2.5M in Special Education money from IDEA* PUSD announced last week. 

According to the U.S. Department of Education this first disbursement from SFSF* is intended to ensure that school districts "... have the resources to avert cuts and retain teachers..."

This infusion of federal cash is intended to stimulate the economy in the short term, for two to three years.  The Department of Education encourages districts to invest quickly, and use the funds to "... strengthen education, drive reforms, and improve results..."   The ED.gov publication Overview of ARRA states, "These funds should be invested in ways that do not result in unsustainable continuing commitments after the funding expires."

Our school district now has a year to drive necessary reforms; to put it's financial house in order; to find and implement long-term solutions without pressure; without the need for a parcel tax.

This funding changes PUSD's budget scenario dramatically.  At this time, the fiscally responsible thing would be for PUSD to withdraw Measure G from the ballot and save the election fees.

Further reading:

*ARRA - The American Recovery and Reinvestment Act of 2009 - Comment or download the full text of the "Federal Stimulus Package here.

*SFSF - State Fiscal Stabilization Fund - a one-time appropriation of federal funds under ARRA intended to advance education reforms.  Read about it here.

*IDEA -  Individuals with Disabilities Education Act - law insuring services to children with disabilities.  Read about it here.