Student driving school to close amid budget crisis
Student driving schools will soon close due to budget crisis.
The University of California system has closed the University of Southern California’s Driver Education program in response to a $1.4 billion budget shortfall.
The university has also closed the Driver Education and Driver Training programs in response.
The closure will affect around 700 students.
The Associated Press reports the decision comes after the California Public Employees’ Retirement System, which administers driver education programs, announced that it is in dire straits and has no money to cover operating expenses.
As of March 1, the system had $739 million in reserves.
That includes $3.5 million for salaries, benefits and capital expenditures.
The shortfall also includes $1 billion in unpaid state aid.
The state is expecting to receive $2.2 billion in state aid over the next two years, but that will be offset by a $2 billion federal grant that was due in 2020.
The funding will help pay for an estimated $200 million increase in state education funding over the coming year, but some California districts will have to make cuts.
A few of the districts that have been hit hardest by the funding crisis are: Los Angeles Unified, San Bernardino Unified, Santa Clara Unified and Sacramento Unified.
They have been under financial stress since last spring.
They are also facing cuts in health and education programs.
The Los Angeles Times reports that the district is looking at eliminating more than 200 positions.
The AP also reported that the University System of California, Los Angeles, which manages the programs, has had to slash its workforce by a quarter.
The district is also trying to close schools, cut hours, close some offices and consolidate operations.