SAN DIEGO (CNS) - The San Diego Unified School District Board of Education was scheduled Tuesday afternoon to consider issuing a report that says the district will meet its financial obligations despite projected budget shortfalls over the next couple of years.

Board members need to approve the first of two interim financial reports that go to the San Diego County Office of Education. In them, they declare a "positive" certification if the district can pay its bills and maintain a balanced budget, a "qualified" certification if there is some doubt, or a "negative" certification, in which the SDUSD will not be able to make its payments.

The district has always issued positive certifications to the COE, and financial staff have recommended doing so again.

Budget planning was helped by Gov. Jerry Brown's announcement Tuesday that mid-year funding cuts to K-12 education will be lower than expected, $79 million instead of $1.5 million. By contrast, the University of California and California State University systems will lose $100 million in state funds.

A full funding reduction from the state could have cost the SDUSD $30 million and sent the projected shortfall in 2012-13 to $95 million. The actual impacts on the district should now be far less.

The first interim report listed numerous ways for the district to reduce spending, which in the worst-case scenario could have lead to layoffs for nearly 800 employees, including the 64 full time employees of the school police force.

The school board will also consider adjusting the funding for a long-awaited performing arts center project at Patrick Henry High School, receive an update on development of a district-wide discipline code, and select new board officers.