The San Ysidro School District offices. (Leonardo Castañeda/inewsource)
The San Ysidro School District for two years overstated student enrollment and now owes the state an estimated $5.1 million.
But inewsource has learned the district’s budget problems don’t end there.
[one_half][box type=”shadow this-matters”]The San Ysidro School District, which serves some of the poorest students in San Diego County, has been beset by money troubles for years and more budget problems are being uncovered by new administrators.[/box][/one_half]
New administrators hired last month following the resignations of the superintendent and his deputy have also uncovered an estimated $2.1 million in expenses that were never funded in the current budget.
Those errors occurred because district officials failed to budget $1 million to pay for 12 new teachers, $600,000 in salaries for non-teaching staff and $500,000 for a 2 percent teacher bonus.
Peter Wong, the district’s new interim chief business officer, said he has worked in three previous school districts and never has seen these kinds of errors.
“This kind of mistake was not one I was accustomed to,” Wong said.
Wong and interim Superintendent Mary Willis said that by using a variety of revenue sources, including reserve funds and unspent money in the current budget, the district will be able to repay the state and cover the budget errors.
But going forward, Wong projects the district will have a $2 million deficit in each of the next two fiscal years.
“It would not be wise to just sit back and wait till … we cannot maintain our solvency,” he said. “We should take a more proactive approach to try to rectify this situation.”
Explaining the attendance error
In 2013, the San Ysidro School District was facing bankruptcy and a takeover by the state. It took about two years for the middle and elementary school district to begin to recover financially and avoid bankruptcy.
The district’s current financial woes aren’t that severe, but they are serious, district officials said.
The latest money troubles started when the district miscalculated its attendance for fiscal 2016. An audit that year uncovered the district had overestimated attendance by 262 students — a significant error because school districts get funding from the state based on attendance. The audit also found that district officials did not seem to understand how to calculate a key aspect of average daily attendance.
[box type=”white post-form”]
Oops! We could not locate your form.
[/box]
That meant San Ysidro was overpaid $2.6 million because of the error, the audit said. But instead of paying back the state, district officials set aside the money and disputed the claim.
Then, Wong said, the district used the same incorrect student numbers for fiscal 2017 and was overpaid an estimated $2.5 million.
Wong said when districts build their budgets they’re allowed to use the enrollment numbers from the previous year — but not if they are wrong.
Now, the district is dropping its attendance dispute with the state, Willis and Wong said.
To repay the state, the district will use the $2.6 million it set aside during the dispute as well as $2.5 million it had in reserve for unspecified liabilities such as lawsuits or other claims, Wong said.
“It’s really obvious,” Willis said. “If the money came from the state and you didn’t have the students or the base to get it, then you give it back. There’s no complication. … You just pay it back.”
Wong said he doesn’t believe the error was intentional. Still, he said, it’s not an ideal financial situation to be in.
“This is not a very good accounting practice,” Wong said. “I mean, we all make mistakes but usually you don’t make the same mistake twice.”
Julio Fonseca was the superintendent when the district first provided the state with the inflated student enrollment numbers, as was his top finance officer, Jose Arturo Sanchez-Macias. They also were both there when the audit uncovered the error.
The two also prepared the fiscal 2017 budget that again included the incorrect student enrollment figures.
Wong doesn’t know specifically how the other $2.1 million in budget errors occurred, but he and Willis are working to find a way to pay for them.
The biggest chunk they plan to use will come from $700,000 of uncommitted funds in the budget for services and operating expenses.
They also intend to use $500,000 in uncommitted funds for books and supplies. As much as $400,000 also will likely come in energy savings from an ongoing solar panel project.
That means district officials need another $500,000 to wipe out the $2.1 million budget errors.
The district also needs another $1.5 million to cover unfunded expenses, bringing the total to $2 million, Wong said. He expects the district’s $10.8 million reserve fund to be used to cover the deficit.
Willis said San Ysidro’s financial issues are serious and will require the five-member school board to “tighten the belt” going forward so that the district’s future financial obligations can be met.
“They really do need to look at how are we spending our money,” she said.
CORRECTION: The original version of this story incorrectly said the first budget that overstated the student enrollment was prepared by then-Chief Business Officer Dena Whittington. The story has been updated to reflect that occurred when Julio Fonseca was the superintendent and Jose Arturo Sanchez-Macias was the top financial officer.
inewsource is a nonprofit, nonpartisan newsroom dedicated to improving lives in the San Diego region and beyond through impactful, data-based investigative and accountability journalism.
Our Vision
Betrayals of the public trust are revealed and rectified, wrongdoing is deterred, and inequities are illuminated thanks to inewsource’s deep, dogged, fact-based reporting.
Our Values
Truth: Above all else, we value the importance of a free and credible press. Truth is the cornerstone of democracy and the core value for inewsource.
Transparency: We build trust with our readers by adhering to the highest standards and ethics, and to reporting with facts, precision and context.
Collaboration: Our newsroom prioritizes collaboration over competition. We regularly partner with media outlets on reporting projects and to share content.
Community: Our reporting serves the San Diego region, and we strive to build relationships with our audience by getting out into the community to listen and engage.
Ethics Policy
inewsource will conduct its business with the highest standards of decency, fairness and accuracy. These standards shall apply equally to inewsource employees, freelancers and all others engaged in gathering information on behalf of inewsource. All receive a copy of these ethical standards.
In the course of our reporting, we will consistently:
● Identify our organization and ourselves fully and avoid false representations of any kind to any source.
● Obtain consent from all parties before electronically recording any interview or conversation except in extraordinary cases authorized by the Managing Editor and Editor. If a source refuses to be taped, that must be honored; no recordings are to be made without consent.
● Respect the individual’s right to privacy. inewsource will never manipulate or barter private, personal, health, financial or other extraneous information in the course of preparing its reports.
● Any source we describe or write about in any significant manner must be contacted. The employee should document all efforts to contact the source, and if unsuccessful, should summarize these efforts at contact in the body of his/her writing.
In addition, inewsource follows the Code of Ethics of the Society of Professional Journalists. The latest version, revised in 2014, can be found here.
Our organization retains full authority over editorial content to protect the best journalistic and business interests of our organization. We will maintain a firewall between news coverage decisions and sources of all revenue. Acceptance of financial support does not constitute implied or actual endorsement of donors or their products, services or opinions.
We accept gifts, grants and sponsorships from individuals and organizations for the general support of our activities, but our news judgments are made independently and not on the basis of donor support. Our organization also may consider donations to support the coverage of particular topics, but our organization maintains editorial control of the coverage. We will cede no right of review or influence of editorial content, nor of unauthorized distribution of editorial content.
Our organization will make public all donors who give a total of $1,000 or more. We will accept anonymous donations for general support only if it is clear that sufficient safeguards have been put into place that the expenditure of that donation is made independently by our organization and in compliance with INN’s Membership Standards.
Diversity
Diverse Voices
Inclusiveness is at the heart of thinking and acting as journalists, and it supports the educational mandate of inewsource. Race, class, generation, gender, sexual orientation, ability, and geography all affect point of view. inewsource believes that reflecting societal differences in reporting leads to better, more nuanced stories and a better-informed community.
inewsource is committed to employment equity and diversity.
Diverse Staffing Report
Below is a breakdown of staffing data at inewsource. We determine the composition of our staff by asking them to self-identify. It is based on a newsroom of 11 and a total staff of 15 as of August 2020. Percentages are based on 15 total survey responses. The numbers include full-time and part-time staff, full-time fellows and full-time and part-time interns.
All Staff Percentages are based on 15 total survey responses. The numbers include full-time and part-time staff, full-time fellows and full-time and part-time interns.
Newsroom Percentages are based on 15 completed survey responses to this question.
Business Percentages are based on 15 completed survey responses to this question.
Gender Identity
Gender Identity
Gender Identity
Women
80%
Women
82%
Women
75%
Men
20%
Men
18%
Men
25%
Sexual Orientation
Sexual Orientation
Sexual Orientation
Straight
87%
Straight
82%
Straight
100%
LGBTQ-identifying
7%
LGBTQ-identifying
7%
Not specified
7%
Not specified
7%
Speak a language beyond English at home
33%
Speak a language beyond English at home
18%
Speak a language beyond English at home
75%
Race/Ethnicity
Race/Ethnicity
Race/Ethnicity
White
67%
White
73%
White
50%
Hispanic or Latinx
20%
Two or more races
18%
Hispanic or Latinx
50%
Two or more races
13%
Hispanic or Latinx
9%
Age
Age
Age
20-29
40%
20-29
45%
20-29
25%
30-39
47%
30-39
45%
30-39
50%
60 or older
13%
60 or older
9%
60 or older
25%
* The percentages in the charts have been rounded and may not add up to 100.
Ownership Structure, Funding and Grants
inewsource is a nonprofit organization, whose legal name is Investigative Newsource. It does business as inewsource. The business was incorporated on Aug. 4, 2009 in the state of California. Tax-exempt status as a 501c3 was granted by the IRS on Sept. 15, 2010. inewsource is funded primarily by individual contributions and foundation grants. We are guided by a board of directors.
Editorial independence: Journalists employed by inewsource take no editorial direction from donors whose contributions may support the organization. inewsource will not hesitate to report on its donors when events warrant. Our Editorial Independence Policy details the firewall between journalism and revenue.
To be transparent with the public, inewsourcelists its donors on its website. In cases where a donor is the subject of an inewsource story, additional disclosure will be made.
Financial Documents
We do our due diligence to earn your trust in our reporting, as well as in our governance and financial sustainability. All of our financial documents are made available to view so that our supporters can trust we are sound stewards of your philanthropy. Review our IRS Form 990s, audited financial statements and annual reports:
Transparency is one of our core values. Today, there is a need to build trust with our audience because new media and ways of communicating spread lies and slanted news faster than “real” news. At the same time, this era of new technologies makes it easier than ever for news organizations to be transparent. People don’t just have to believe us, they can investigate our investigations with our source materials.
Transparency is key to building credibility.
inewsource reporters have primary responsibility for reporting, writing, and fact-checking their stories. But before a story is published, the reporter reviews all facts and sources with an editor or another reporter. Facts must be traced to a primary source.
In addition, we “transparify” certain investigative stories. This process involves publishing a version of the web story with hyperlinks to all the story’s facts. This is proof that all facts have been documented with primary evidence. We do this to build trust with our readers and to be as transparent as we hope the public figures and institutions that we hold accountable will be.
Unnamed Sources
Not all sources are created equal. Some sources cannot speak authoritatively, provide proper analysis or speak specifically to every inquiry placed before them. To maintain the integrity of our reporting, inewsource reporters must select sources who can speak with validity to the topic at hand, and avoid presenting unqualified or underqualified sources as experts.
If an interviewed source has a conflict of interest, or whose qualifications may be tangential or limited, reporters will note that within the context of the story.
It is incumbent upon reporters to fully background their sources to uncover conflicts of interest or slant prior to using them in a story.
Unless discussed prior to an interview, all subjects talking to inewsource journalists are on the record. Specifically, the source is identified by name and title, and their exact or paraphrased words are attributed to them for publication. If journalists speak with sources who are not politicians, public figures or those not commonly interviewed by journalists, staff should explain clearly that information discussed will be on the record and for publication.
There are times, however, when information may be critical for a story but cannot be found or verified by other means. For example, a source may be able to confirm specific information about a series of events they may have witnessed, but have legitimate concerns about using their name or title. The repercussions to the source could be legal, job-related retribution or personal safety. The source and journalist must discuss these potential dangers and terms of use should be agreed upon by both parties.
If inewsource publishes information from an anonymous source, inewsource will explain to readers, in as much detail as possible, why we agreed to anonymity.
Corrections and Clarifications
inewsource strives for accuracy in everything we do, which is why we are committed to fact checking our content. But sometimes we make errors. When that happens, we correct them. We also clarify stories when something we’ve written is confusing or could be misinterpreted.
We endeavor to always be transparent about our commitment to correcting errors and clarifying misperceptions. When staffers see, hear or read about a possible issue with the accuracy of any inewsource content, they are expected to bring it to the attention of an editor and the web producer so it can be evaluated to determine how to proceed.
Including the web producer is key because inewsource is a multimedia news organization and shares its content with multiple partners on multiple platforms. The web producer must alert these partners about corrections and clarifications.
Corrections and clarifications should be included at the bottom of stories and dated.
Actionable Feedback and Newsroom Contacts
Our audiences know the region we cover and have a stake in maintaining and improving the quality of life in San Diego and Imperial counties. We know your knowledge and insights can help shape what we cover and how we cover it. We invite your comments and complaints on news stories, suggestions for issues to cover or sources to consult. We rely on you to tell us when we get it right and when we need to keep pushing.
Your comments, questions and suggestions can be sent to the team as a whole at contact@inewsource.org or you can contact a specific member of our staff.
Lorie Hearn is the chief executive officer, editor and founder of inewsource. She founded inewsource in the summer of 2009, following a successful reporting and editing career in newspapers. She retired from The San Diego Union-Tribune, where she had been a reporter, Metro Editor and finally the senior editor for Metro and Watchdog Journalism. In addition to department oversight, Hearn personally managed a four-person watchdog team, composed of two data specialists and two investigative reporters. Hearn was a Nieman Foundation fellow at Harvard University in 1994-95. She focused on juvenile justice and drug control policy, a natural course to follow her years as a courts and legal affairs reporter at the San Diego Union and then the Union-Tribune.
Hearn became Metro Editor in 1999 and oversaw regional and city news coverage, which included the city of San Diego’s financial debacle and near bankruptcy. Reporters and editors on Metro during her tenure were part of the Pulitzer Prize-winning stories that exposed Congressman Randy “Duke” Cunningham and led to his imprisonment.
Hearn began her journalism career as a reporter for the Bucks County Courier Times, a small daily outside of Philadelphia, shortly after graduating from the University of Delaware. During the decades following, she moved through countless beats at five newspapers on both coasts.
High-profile coverage included the historic state Supreme Court election in 1986, when three sitting justices were ousted from the bench, and the 1992 execution of Robert Alton Harris. That gas chamber execution was the first time the death penalty was carried out in California in 25 years.
In her nine years as Metro Editor at the Union-Tribune, Hearn made watchdog reporting a priority. Her reporters produced award-winning investigations covering large and small local governments. The depth and breadth of their public service work was most evident in coverage of the wildfires of 2003 and then 2007, when more than half a million people were evacuated from their homes.
Laura Wingard is the managing editor at inewsource. She has been an editor in San Diego since 2002, working at The San Diego Union-Tribune, KPBS and now inewsource. At the Union-Tribune, she served in a variety of roles including as enterprise editor, government editor, public safety and legal affairs editor, and metro editor. She directed the newspaper’s award-winning coverage of the October 2007 wildfires and the 2010 disappearance of Poway teenager Chelsea King. She also oversaw reporting on San Diego’s pension crisis.
For two years, Wingard was news and digital editor at KPBS, overseeing a team of four multimedia reporters and two web producers. She also was the KPBS liaison with inewsource and collaborated with inewsource chief executive officer and editor Lorie Hearn on investigative work by both news organizations.
Wingard also worked at the Las Vegas Review-Journal as the city editor and as an award-winning reporter covering the environment and politics. She also was the assistant managing editor for metro at The Press-Enterprise in Riverside. She earned her bachelor’s degree at California State University, Fullerton, with a double major in communications/journalism and political science.
Brad Racino is the assistant editor and a senior reporter at inewsource. He has produced investigations for print, radio and TV on topics including political corruption, transportation, health, maritime, education and nonprofits.
His cross-platform reporting for inewsource has earned more than 50 awards since 2012, including back-to-back national medals from Investigative Reporters and Editors, two national Edward R. Murrow awards, a Meyer “Mike” Berger award from New York City’s Columbia Journalism School, the Sol Price Award for Responsible Journalism, San Diego SPJ’s First Amendment Award, and a national Emmy nomination.
In 2017, Racino was selected by the Institute for Nonprofit News as one of 10 “Emerging Leaders” in U.S. nonprofit journalism.
Racino has worked as a reporter and database analyst for News21; as a photographer, videographer and reporter for the Columbia Missourian; as a project coordinator for the National Freedom of Information Coalition and as a videographer and editor for Verizon Fios1 TV in New York. He received his master’s degree in journalism from the University of Missouri in 2012.
Byline Policy
Most of our articles carry a byline to identify the author. In some cases, inewsource will use a brand byline such as “Staff” or “inewsource” for internal or editorial information about the newsroom. In these instances, inewsource‘s Editor and Managing Editor are responsible for content that uses a brand byline.
The Trust Project
inewsource is proud to be a member of The Trust Project and support efforts to increase transparency in journalism by displaying the 8 Trust Indicators on our stories. We launched the Trust Indicators on Sep. 16, 2020.
Privacy Policy
inewsource has prepared this Privacy Policy to explain how we collect, use, protect, and share information when you use our inewsource.org website (the “Site“) or when you use any of our services (the “Services“).
By using the Site or Services you consent to this Privacy Policy.
Log Data
Like many site operators, we collect information that your browser sends whenever you visit our site (“Log Data”).
This Log Data may include information such as your computer’s Internet Protocol (“IP”) address, browser type, browser version, the pages of our site that you visit, the time and date of your visit, the time spent on those pages and other statistics.
Cookies
Cookies are files with small amount of data, which may include an anonymous unique identifier. Cookies are sent to your browser from a web site and stored on your computer or mobile device.
Like many sites, we use “cookies” to collect information. You can instruct your browser to refuse all cookies or to indicate when a cookie is being sent. However, if you do not accept cookies, you may not be able to use some portions of our site.
Certain pages on our site may set other third party cookies. For example, we may embed content, such as videos, from another site that sets a cookie. While we try to minimize these third party cookies, we can’t always control what cookies this third party content sets.
Additionally, we may use third party services — such as those that provide social media conveniences, measure traffic, send newsletters and facilitate donations — that may place cookies on your computer. We don’t have any way of knowing how such services handle the resulting data internally. inewsource makes no claim, nor takes liability for the insecure submission of information via these applications.
Here are the services whose cookies you can find on inewsource.org:
Sharing buttons for Facebook and Twitter. These use the standard scripts provided by each company.
Google Analytics, which we use to measure site traffic. Google Analytics gathers certain non-personally identifying information over time, such as your IP address, browser type, internet service provider, referring and exit pages, time stamp, and similar data. We also use Facebook Pixel to measure, optimize and build audiences for advertising campaigns served on Facebook. In particular it enables us to see how our users move between devices when accessing our website and Facebook, to ensure that our Facebook advertising is seen by our users most likely to be interested in such advertising by analyzing which content a user has viewed and interacted with on our website.
Stripe, which allows us to accept donations through our website.
Salesforce to manage newsletter subscriber, donor, and other identifiable user data.
Mailchimp, to manage newsletter distributions. We collect your email address if you choose to subscribe to one of our email newsletters or email news alerts. Other optional information that you enter when subscribing – such as your first and last names or city are simply so that we can deliver more personalized email newsletters. We DO NOT sell, rent or market your information to any other parties. We retain your information only as long as necessary to provide your service. When we send emails, it collects some data about which users open the emails and which links are clicked. We use this information to optimize our email newsletters and, as aggregate information, to explain what percentage of our users open and interact with our newsletters.
Personal Data
We only collect personally identifiable information such as your name and email address when you sign up for a newsletter, donate to our organization, or otherwise submit it to us voluntarily. We do not share your personal data with any third parties other than some common service providers, whose products use your information to help us improve our site, deliver newsletters, or allow us to offer donation opportunities.
inewsource limits access to all user data for the purposes of newsletter, fundraising, and customer service only. User data is not sold to or otherwise shared with anyone not working with or for the inewsource.
You may unsubscribe or opt-out of our email and mail communications at any time by hitting the “unsubscribe” button in any email you receive from inewsource, or by emailing us at contact@inewsource.org or calling us at 619-594-5100.
Donor Information
The identities of all donors will be listed on our website. inewsource does not share, trade, sell, or otherwise release donors’ personal information to any third parties.
Refunds
If you encounter errors when donating on the website, please contact us at members@inewsource.org. For example, if you submit a donation for an incorrect amount or make a duplicate transaction please email us immediately so we can reverse the charges.
Cancellation of Recurring Donations
You can cancel your monthly recurring donations free of charge by notifying us at members@inewsource.org.
Links to Other Websites
Our site may contain links to documents, resources or other websites that we think may be of interest to you. We have no control over these other sites or their content. You should be aware when you leave our site for another, and remember that other sites are governed by their own user agreements and privacy policies, which should be available to you to read.
Disclaimers and Limitation of Liability
Although we take reasonable steps to prevent the introduction of viruses, worms, “Trojan Horses” or other destructive materials to our site, we do not guarantee or warrant that our site or materials that may be downloaded from our site are free from such destructive features. We are not liable for any damages or harm attributable to such features. We are not liable for any claim, loss or injust based on errors, omissions, interruptions or other inaccuracies on our site, nor for any claim, loss or injust that results from your use of this site or your breach of any provision of this User Agreement.
Contact Us
If there are any questions regarding this privacy policy, please contact us at contact@inewsource.org or call us at 619-594-5100.
Leonardo Castañeda was a reporter and economic analyst for inewsource. To contact him with tips, suggestions or corrections, please email leocastaneda [at] inewsource [dot] org.
More by Leonardo Castañeda