Scott Laurence, the new superintendent of the San Mateo Union High School District, was given grim news at his first board meeting last night — the district faces a $3.5 million shortfall in next year’s budget which may lead to layoffs.

The Board of Trustees approved this year’s budget last night after the district was forced to trim from its expenses and find one-time funds to bridge a nearly $4 million gap with minimum layoffs.

Next year, however, will be grim, said Liz McManus, the district’s associate superintendent of business services.

With the state being in a financial crisis and property tax revenue decreasing, the district may have to look at proposing a parcel tax, sell excess property and find energy-saving solutions to meet fiscal year’s 2010-11 budget, McManus said.

“Hold on to your seats, we have a wild ride ahead of us,” she told the board.

The district’s expenditures in the 2009-10 fiscal budget is approved at $94.3 million but next year’s budget forecast expects revenue to decrease by at least $1.3 million, according to an adopted budget report submitted by McManus.

Money is dwindling for staff development and the district doesn’t have state money in next year’s budget to buy textbooks, McManus told the board. There is also no new money for salary increases, McManus said.

The budget is based on an overall enrollment of 8,416 students. If enrollment goes down, however, the district may need to reduce staffing.

The district currently employs about 463 teachers and 255 other employees.

However, the board was able to increase its reserves from nothing two years ago to a healthier 7 percent now, meaning it is better prepared now for the state’s volatile budget than it would have been two years ago. The state requires basic-aid districts to maintain a 3 percent reserve.

The district increased facility-use fees at its Crestmoor site in San Bruno and consolidated transportation services this year to find significant savings and revenue to help make up its $4 million deficit.

The district will get federal stimulus money for special education next year that could bring savings in other areas. However, the County Board of Education has passed costs down to the district for busing students in special education programs.

“The county just passes off their costs to us,” Trustee Dave Pine said.

The district’s relationship with the county needs to improve, Board President Linda Lees Dwyer said.

The board also commented on an idea to study whether to install solar power at its schools. The capital expense out of Measure M bond money could save the district significant savings in operating costs, both Pine and Trustee Stephen Rogers agreed.

Trustee Peter Hanley, however, isn’t convinced solar is a viable option to save the district money.

“It’s the Pet Rock of the year,” Hanley said.

Neither Lees-Dwyer nor Trustee Robert Griffin gave the idea much value.

“Is it on your house yet?” Lees-Dwyer asked Rogers.

Bill Silverfarb can be reached by e-mail: silverfarb@smdailyjournal.com or by phone: (650) 344-5200 ext. 106.