Local school districts, like all government agencies in the state, are tightening their belts and wondering what the state budget will hold for them.

With the state facing an estimated $30 billion-plus deficit, budget cuts are inevitable.
Bill McCabe, superintendent of the Yosemite and Coarsegold school districts, says he does not anticipate severe reductions in service or layoffs.

"Fortunately, both districts have come into this budget crisis with healthy ending balances," he explains. "The boards have been fiscally conservative and have made it a priority to have money put aside for a rainy day. And now, it is raining."

Because of these ending balances, both the Coarsegold and Yosemite districts are able to deficit spend for about three years.

"This means we will be dipping into our reserves, but that is the purpose of a reserve, to have money to meet unexpected expenses. This crisis was certainly unexpected since the state had budget surpluses just a couple years ago."

Mr. McCabe says it is important to keep services and staffing at the current levels if at all possible. "I don't know where we could cut," he says. "Every program is important and every staff member is vital to our organizations. We will take every step possible to not eliminate programs or reduce staff."

One of the problems the board and administration will face this year is having to prepare the districts' budgets by June 30 but not knowing what the state budget will be. "I think we can safely assume the state budget will be late this year," Mr. McCabe says. "It is very difficult for us to prepare our budget when we really don't know what our income will be. We will take a conservative approach, using the information we have available at the time and hope we come close to what we actually receive when the state completes its budget."

Mr. McCabe is hopeful that the state budget will turn around in two or three years so every agency that depends on funds from the state can return to providing the services the public expects and needs.

"I am optimistic that we will make it through this time with a minimum of disruption. Everyone in both districts is working hard to continue to provide services to our students," Mr. McCabe concludes.