Bob Elliot, assistant director of the financial services
department, said that, on paper, the budget has promise, but how it
ultimately turns out is tough to say.
"We will pretty much be in OK shape," Elliot said.
Schwarzenegger's proposed budget is $102.8 billion. That includes
nearly $34 billion for K-12 education, or 43% of the state's general
Municipalities receive their funding through property taxes, sales
tax, motor fuel tax, and vehicle-license fees.
The new budget includes an increase in the cost-of-living
adjustment that would bring an additional $400,000 to the school
district. An additional $393,000 will go to public schools to make up
for receiving less than the state average for per-pupil funds.
Board Vice President Paul Krekorian said it was good news that the
governor's revision is consistent with the budget he proposed in
January, and does not include further cuts or reductions.
Krekorian also was pleased that the state Assembly will reportedly
meet the June 30 deadline to pass a budget. That makes it easier for
the district to put together and adopt a final budget, Krekorian
"When we don't know how much money we're getting, it's difficult
to plan our budget," Krekorian said.
The district's preliminary budget projects deficits, but those
shortfalls will be covered by money in the district's reserves.
For the city, the revised budget results in a $3.6-million loss
for the general fund over the next two years. The city's
Redevelopment Agency will lose $5 million over the same period.
In fiscal year 2006-07, however, the city expects to receive $1.8
million from the state in vehicle-license fees.
In preparing the budget for the 2004-05 fiscal year, city
officials took into consideration losing $1 million. They now have to
find ways to make up the balance of $800,000.
The city is considering fee increases and at least one new fee to
make up the difference, Elliot said.
For example, increasing the cost of ambulance services to
residents to $48 from $36 would bring in an additional $40,000 a
year. A new $30 fee for reviewing development plans is expected to
bring in $70,000 per year.
Staff writer Jackson Bell contributed to this story.