In about two hours, the Douglas Unified School District Governing Board handled more than 90 items including two termination proceedings and and and executive session, one resignation, the beginning of their  board webcasts, budget news and a jazz concert.

A full evening for anyone.

The meeting, which started at 5 p.m., kicked off with a performance by the Douglas High School Jazz Band in the old cafeteria at the Central Administration Building. The two songs were received by thunderous applause.

The interlude provided a positive start, but the district board soon received bad news from Business Manager Denise Evans..

She said that after final completion of the Annual Financial Report (AFR) it was brought to her attention by Superintendent Earl  Pettit that there might be a problem with the funding of the Maintenance and Operation budget.

“For the last couple years it appears that we have not collected through property tax, enough revenue to cover our budget. In the 2005/06 fiscal year the shortfall was $976,267 but the available cash was over $1,338,628;  in 2006/07 fiscal year the shortfall was approximately $2,038,657 and the available cash was $89,054, and in the 2007/08 fiscal year the shortfall was approximately $1,566,695. There is also a possibility of a shortfall in the 2008/09 fiscal year and the district is trying to find the ways to solve this issue,” Evans told the board.

She explained that the shortfall comes from setting the property tax rates too low to support the budget and from uncollected property taxes. Aside from the 5 cent increase the district has not increased property taxes for a couple years and is looking at the possibility of a tax increase for the 2009/10 fiscal year.

The district had a balance of uncollected property taxes for 2007/0 8 in the amount of $97,636.80 and a balance of uncollected taxes in the amount of $5,909.16 for 2006/07.

Evans said the district was able to correct this shortfall for the 2007/08 fiscal by moving levy funds (levy funds are the pool of money that comes from property tax, additional state aid, and State equalization) from soft capital into Maintenance and Operation.

The district up until last year also got County equalization that helped fund the budget. The district no longer gets that funding from the County. The district has enough cash in its levy accounts to cover the M&O shortfall for this year and most likely in case of a shortfall in 2008/09. The district has not had to register warrants because of this shortfall. When a district has to register warrants with the County School Superintendent’s Office it ends up costing the district more money because of the interest from borrowing the money to cover the outstanding warrants.

“The district is looking into the allocation of the levy funds to ensure that the proper percentage is where the district needs to be. The current allocation for State Equalization has 95 percent going to M&O with the remaining 5 percent being allocated to soft capital. The district is working with the County School Superintendent’s office to seek advice on the allocation of funding. According to ADE, it is to late this year to do anything to correct the property tax issue. The tax rate has been set and can not be changed at this time. This is something that the district will keep a close watch during the year and correct this issue for the 2009/10 fiscal year” Evans said

The problem is not simply one that this district is finding,but one nearly every district in the county has now found.

The district is moving ahead with its technology and approved putting its board meetings on a webcast that can be seen from their website.

The bard approved the move Tuesday,and the second half of the meeting was available on its website.

The board also wrestled with three personnel issues. One was settled prior to the meeting, with the resignation of of Ray Borane Middle School custodian Tony Alvarado.

Educational Technology Coordinator Cynthia Cardona; and Suspension Monitor Kenneth Carpenter were approved for dismissal by the governing board.

The move by the board does not indicate innocence or guilt, just that the charges before them are significant enough to warrant termination if true.

Cardona and Carpenter have 30 days to appeal.

Cardona, who is accused of unprofessional and insubordinate behavior on at least 17 occasions. “The insubordinate and unprofessional conduct exhibited by Cardona, as well as her multiple violations of Governing Board policies and regulations, mandate she be dismissed from employment with th district,” according to the agenda.

The charge against her were read in public session, at her request, but since the board may have to act as the hearing officers, she was unable to answer questions or speak in her defense at the Tuesday meeting.

Carpenter was being terminated for “unprofessional conduct.”