Financial Report
Srini Vasan
Director of Business Services

Srini Vasan
 

Walt Disney once said, “It is kind of fun to do the impossible.” I give our governor due credit for presenting a very aggressive - and possibly impossible - budget. Before I comment any further on his budget and how school education is impacted, I have a disclaimer. If the Bonds (Education Facilities Bond 55 and Economic Recovery Bond 57) do not pass in the March elections, all bets are off. If Bond 57 fails, then the governor might disagree with Walt Disney’s quote. Okay, what could happen? How about taxes and cuts? How about turmoil and calamity in the education community? You can bet there will be no sacred cows!

After two years of unprecedented and traumatic mid-year budget cuts, the 2004-05 Governor’s Budget offers schools: Modest funding increases, reforms of limited scope, much-needed stability. I would rather have a budget that is not favorable to me today than to face the uncertainties of midyear cuts. The Democrats have already drawn their swords and are vowing to fight this budget. I am reminded of the famous saying: “There is many a slip between the cup and the lip.” Power, politics and budgets are short-lived happiness.

The governor has proposed cuts to virtually all levels of bureaucracy. Education will get a 1.84% COLA (Cost of Living Allowance) and has a limited suspension of Proposition 98. Proposition 98 guarantees that a certain portion of the state budget should go to education. It is currently at a higher level due to previous funding. The governor wants to take back $2 billion from Proposition 98 (limited suspension) and has promised to backfill when the economy gets better. So, including prior years total Prop 98 avoidances, this is $3.2 billion. Now on the other hand, to put things in perspective, community colleges and state universities, will be receiving less money.

Here are some more details. The governor has proposed bundling some 20 plus categorical programs into the revenue limit thus giving flexibility to the districts on their expenses. Included in it are some major items such as transportation (which already is a huge encroachment), School Improvement, Instruc-tional Materials Block Grant, Peer Assistance Review (PAR), and Staff Develop-ment Buy Out. Workers Compensation comes as the next priority after balancing the budget. Taming this beast will help us all. If we catch this tiger by its tail, we better not let it go.

The budget proposal has to go through the senate and assembly. May budget revision will show us the winners and losers. Let us not make the mistake of using one-time windfall revenues for ongoing expenses like the past governor. We don’t want to see history repeat itself.

I liked the governor’s rhetoric about being more efficient and getting rid of time-consuming red tape, bottlenecks and paper work and becoming a more efficient state. There is a famous German saying: “Von der Wiege, bis zur Bahre, Formulare Formulare.” Translated: “From the cradle to the grave, forms and nothing but forms.” The amount of forms and reports the district has to fill out for the state is getting out of control. Do you hear me, Governor? Finally, the economy is starting to grow. But can it grow fast enough to help us out of the woods for next year? Please stay tuned!

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