ISM Community Update
Dear ISM community,
I want to thank all of you who work so hard to make ISM the wonderful school that it is.
ISM financial update:
Over the past few months we have been hearing some dire news about the State’s financial situation and how it is affecting local school systems. At this time it is important to let our school community know that ISM is not immune to the financial crisis.
As a public charter school, most of our funding comes from the State. To manage its budget, the State of California has cut educational funding significantly. This has directly affected ISM to the tune of about $150,000. The good news is that, due to our proactive freeze on spending and aggressive fundraising efforts in anticipation of State cuts, we still project a positive balance on our books at the end of this extremely challenging budget year.
In addition to the cuts though, the State has informed schools that they will defer some scheduled payments. The State provides schools with their funding by making payments on specific dates during the school year. At ISM we design our budget (i.e. determine how we will meet payroll and pay bills) knowing the dates that we will be able to deposit the State money into our accounts. The State has informed all schools that they will defer the payment we were to receive in April. They will not give us those funds until July. This means that we may fall short of our cash needs by as much as $150,000 at the end of June.
So, though we project a positive budget balance, we foresee a cash flow problem. You would experience this same dichotomy if your projected family spending was below your earned income, but your employer decided to hold your paychecks for a few months.
Just like your family, ISM will still be responsible for paying our bills in June even though the State has deferred our allocations. The administration and the ISM Board of Trustees are working hard to find a solution to this immediate problem in June. Because the State has indicated that it plans to defer some of the payments scheduled for the next school year as well, along with seeking a solution to the June financial we are seeking solutions to ensure positive cash balances throughout 2009-2010.
While the Foundation reports that we are on a solid trajectory to achieve our fundraising targets for the year thanks to the incredible generosity that you all showed during the holiday fund drive and have maintained since, they will continue to work to increase Family Share contributions as one mechanism for addressing the projected cash shortage. Your ongoing support is greatly appreciated.
Status of the ISM move:
Each day we get questions about the possible move of ISM to the Hayes campus. We have been told by MPUSD that we may move, but no definitive decision has been made. We are in negotiation with the school district as to the details of our space allocation for next year under our lease and the Proposition 39 Implementing Regulations adopted by the State Board of Education. Under those regulations, MPUSD has until April 1 to make a firm offer of space for the 2009-2010 year. As soon as we have more information to share, we will let you know. Meanwhile, we've formed an ISM committee to begin planning for the possible move to the Hayes campus.
These are very difficult times and it is important for our entire ISM community to understand the challenges that we face. Thank you for your continued support, and please be assured that we will do everything possible to maintain the quality of the educational program that your child receives at ISM.
Eric Pearlstein
Interim Executive Director
(831) 583-2165
epearlstein@ismonterey.org
I want to thank all of you who work so hard to make ISM the wonderful school that it is.
ISM financial update:
Over the past few months we have been hearing some dire news about the State’s financial situation and how it is affecting local school systems. At this time it is important to let our school community know that ISM is not immune to the financial crisis.
As a public charter school, most of our funding comes from the State. To manage its budget, the State of California has cut educational funding significantly. This has directly affected ISM to the tune of about $150,000. The good news is that, due to our proactive freeze on spending and aggressive fundraising efforts in anticipation of State cuts, we still project a positive balance on our books at the end of this extremely challenging budget year.
In addition to the cuts though, the State has informed schools that they will defer some scheduled payments. The State provides schools with their funding by making payments on specific dates during the school year. At ISM we design our budget (i.e. determine how we will meet payroll and pay bills) knowing the dates that we will be able to deposit the State money into our accounts. The State has informed all schools that they will defer the payment we were to receive in April. They will not give us those funds until July. This means that we may fall short of our cash needs by as much as $150,000 at the end of June.
So, though we project a positive budget balance, we foresee a cash flow problem. You would experience this same dichotomy if your projected family spending was below your earned income, but your employer decided to hold your paychecks for a few months.
Just like your family, ISM will still be responsible for paying our bills in June even though the State has deferred our allocations. The administration and the ISM Board of Trustees are working hard to find a solution to this immediate problem in June. Because the State has indicated that it plans to defer some of the payments scheduled for the next school year as well, along with seeking a solution to the June financial we are seeking solutions to ensure positive cash balances throughout 2009-2010.
While the Foundation reports that we are on a solid trajectory to achieve our fundraising targets for the year thanks to the incredible generosity that you all showed during the holiday fund drive and have maintained since, they will continue to work to increase Family Share contributions as one mechanism for addressing the projected cash shortage. Your ongoing support is greatly appreciated.
Status of the ISM move:
Each day we get questions about the possible move of ISM to the Hayes campus. We have been told by MPUSD that we may move, but no definitive decision has been made. We are in negotiation with the school district as to the details of our space allocation for next year under our lease and the Proposition 39 Implementing Regulations adopted by the State Board of Education. Under those regulations, MPUSD has until April 1 to make a firm offer of space for the 2009-2010 year. As soon as we have more information to share, we will let you know. Meanwhile, we've formed an ISM committee to begin planning for the possible move to the Hayes campus.
These are very difficult times and it is important for our entire ISM community to understand the challenges that we face. Thank you for your continued support, and please be assured that we will do everything possible to maintain the quality of the educational program that your child receives at ISM.
Eric Pearlstein
Interim Executive Director
(831) 583-2165
epearlstein@ismonterey.org
Labels: announcement, fundraising
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