Colfax Elementary School District’s budget status has changed from negative to qualified, it was announced at Monday evening’s board meeting.

“Negative meant the district was not able to meet its financial obligations for the current fiscal year or subsequent two years,” reported Teresa Ryland, a CPA hired by the Placer County Office of Education to help the district review its budget and make necessary cuts.

Ryland acknowledged the efforts of the Budget Review Committee, comprised of board members, teachers, district employees and community members, who have met several times in the past two months to review the district’s financial picture.

“Because of all our hard work, we’re qualified. We’re out of the woods – for now,” she explained.

The district was able to make mid-year reductions of $90,000, Ryland continued. The cuts include a savings of $31,000 through furlough days for administration and classified employees and $57,000 in deferred maintenance or cuts to utilities, textbooks, supplies and conferences.

Superintendent Fred Adam reminded the board their work is not done. While cuts have been made for this school year, the board must revise the budget for the next two school years.

“The district must meet a two percent reserve for economic uncertainty in 2010-11 and four percent thereafter,” explained Ryland.

The committee will have to identify $240,000 in reductions for the 2010-11 school year by May.

Another $170,000 in cuts for the 2011-2012 school year must be considered by June.

The budget projections assume a continued decline in enrollment and state revenues falling short of forecasts, Ryland said.

“We are hearing that schools won’t be back to the funding levels of 2006-07 until 2015,” she continued. “While the national economy may be turning a corner, California will continue to suffer high unemployment, a weak construction sector, continuing drought and political gridlock. Public schools typically see improvements 18 months after recovery begins.”

In other business, the board asked Adam to consider options for providing bus transportation.

Mid-Placer Transportation’s cost to the district is $29,000, but they are willing to reduce that fee to $15,000 for the 2010-11 school year, Adam reported.

After some discussion, the board asked Adam and Principal Ann Stone to continue negotiating with the bus company.

The board’s intent is to keep the cost of school-to-home bus service to $100 per child per year or $50 per semester.

“One hundred is easier for people to handle than $200, $220,” he said.

Adam will also review possible cost savings by changing bus service for special education students.