Officials in California recently announced a $54 billion deficit due to the economic impact of COVID-19. The mandated shutdown of many businesses has taken a huge toll on the state’s ability to generate funds, and additional costs from pandemic-related programs have further depleted reserves. Though California started the year with a large surplus of funds, the pandemic’s economic effect means a huge blow to funding for social programs, healthcare, and education. K-12 schools face an $18 billion decrease in guaranteed state financing — and this at a time when educators have been pushing for more money to cover gaps in teacher salaries and other essentials. And California is not alone; school funding is being slashed across the country in what some are calling a “financial meltdown for America’s schools.”
So what can school districts do to ensure financial stability in the midst of vast unexpected budget cuts? DCG Strategies recommends looking at existing resources, specifically real estate assets, to see how they can be leveraged efficiently.
School district real estate is a valuable asset in California’s competitive markets. DCG Strategies specializes in working with educational organizations to identify underutilized real estate and use it to generate funds. This might be as simple as selling a plot of land, but more often involves creative solutions like rent sharing, right-sizing, or workforce housing. Our team has 15 years of experience working with schools, and we’re uniquely qualified to help you through this unprecedented time. DCG Strategies offers:
- A holistic approach including long-range strategic planning to help ensure future financial health
- An experienced team of full-service consulting, property planning, and commercial real estate professionals
- Higher standards of social and environmental performance, accountability and transparency as a certified benefit corporation
- A passion for building value within our community
If you’re not sure whether your school district’s real estate has moneymaking potential, contact DCG Strategies for a consultation. We would be honored to help you formulate a plan for the future.