Financial report
Srini Vasan

Famous saying in Greek - “Vox Populi, Vox Dei”. Translated - “Voice of the people is voice of God.” Welcome to Governor-elect Arnold Schwarzenegger! I hope that the new governor extends his support to the education community as Governor Davis did.

The most often asked question is, how will the recall affect school budgets? I recently attended a boot camp for Chief Business Officials. I enjoyed one session in particular. Though Kevin Gordon from California Association of School Business Officials (CASBO) did not answer the budget question, he raised some interesting questions and promised to lobby Sacramento to guard school funding. His main fear is that funding could be brought back to the bare minimum level of Proposition 98 (we are currently funded slightly above the Prop 98 level).

Where is my crystal ball? Let me throw in my two cents.

Here are my thoughts. Arnold, during his early days of the campaign, was asked the question, “Will you raise taxes?” If you can recall (no pun intended), his reply was: “With regards to taxes I will not commit myself to not raising taxes.” Fast forward to four days before election. The rhetoric changed to: “I will not raise taxes.” Hmmm. Smart shift. Or, was it?

Let us look at the deficit scenario. Next year will see $15 billion (or more) in budget deficits. So, if the new governor does not raise taxes, and if he is going to repeal car taxes (worth $4 billion), where is he going to find the dollars needed to run this state? Will the federal government help us? Yeah, right. I am not that naive. Will the governor’s honeymoon be shorter than expected? Can he stick to his rhetoric on taxes? But, someone has to pay the check, right? Guess who?

Expect and be prepared for mid year cuts. Expect zero COLA (cost of living adjustment) for next year, and expect medical costs to go up. Both school districts face deficit spending for the next two years, but we will survive. Watch your expenses and try to live within your budget. Let us be creative and work together to win this budget battle.

I am getting ready to close the financing on the new - and much needed - construction of 23 classrooms and swimming pool. Fortunately, the state funds for construction (that can be spent only on construction) have already been approved and are guaranteed.

Come December we may know the true state of the state budget crisis. Until then, let us keep a positive attitude.

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