$33 million in blunders:


Seattle schools chief announces gaping budget hole



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By Linda Shaw and Tan Vinh,
Seattle Times staff reporters




Seattle School Superintendent Joseph Olchefske, a numbers guy by training, yesterday had to 
announce a horrible number: a $33 million hole in the district's finances.


 
Due to accounting glitches and computer problems, the district faces a $21 million shortfall 
from last year and must trim another $12 million from this year's $443 million budget.



Olchefske, who worked in the securities industry before joining the district in 1995, took full
responsibility for the problems. But he also said they led to the departure of Geri Lim, who 
resigned as chief operating officer in August.



School Board President Nancy Waldman sat by his side as he announced the news. She said he had 
her "fullest support and confidence."



Waldman characterized the shortfall as a "stumbling block" in a district that was doing a lot 
of good things to improve student achievement.



"I'm shocked," said Lisa Bond, president of the Washington State Parent-Teacher Association and
former Seattle Parent Teacher Student Association president.

 

Budget surprises: 


A systems problem resulted in $7 million of employee costs going unbudgeted. The error 
was attributed to an information gap between the district's new financial system installed in 
2001 and a separate system that tracks "personnel commitments."

$7 million in state revenue for vocational education was inadvertently counted twice.
 

$5 million in costs from the 2000-2001 school year were accounted for in the 2001-2002 
school year.

A $2 million reduction in revenue resulted from the slumping economy and declining 
interest rates.

Those same circumstances also created a projected $12 million shortfall in the 
2002-2003 budget.


 

Given the scope of the problem, both the teachers union and the district's PTSA said yesterday 
they want greater input in budget decisions to ensure teachers and students won't be impacted 
by the cuts.



The union also praised Olchefske for how he's handled the crisis.



The state Office of Superintendent of Public Instruction said it would not get involved unless 
the district went into the red.



Among the programs that teachers fear could be affected is the secondary Bilingual Orientation 
Center (BOC) on upper Queen Anne, where hundreds of new immigrants are schooled. Many BOC 
teachers met after school yesterday, and all were convinced closure is guaranteed with the 
budget crisis, said two teachers who asked not to be identified.



Linda Shaw: 206-464-2359 or lshaw@seattletimes.com.

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