GUSD budget considered the best in nearly two decades
Gilroy – Local schools are staring at a sunny fiscal future now that the Gilroy Unified School District board adopted the 2006-2007 budget Thursday night – a budget school officials have happily dubbed the best in 20 years.
The budget was unanimously approved in a 6-0 vote. Board President Pat Midtgaard was absent.
Thanks to the ample budget sent down from Gov. Arnold Schwarzenegger – which he signed Friday afternoon – the district was able to increase the cost of living adjustment, reduce the deficit factor and beef up equalization aid or extra state funding for low revenue districts to help push them closer to the California average, Assistant Superintendent Steve Brinkman said.
“Those are the big ones that really put us over the top in terms of the revenue increase,” Brinkman said referring to the increase in COLA and equalization aid and deficit reduction.
On Tuesday, state legislators approved a $130.9 billion budget that includes $55.1 billion for schools, an increase of $5.1 billion and one of the largest increases ever for California schools.
The GUSD has budgeted total expenditures of $161 million and $76 million of the total budget sits in the general fund, which pays the daily bills, such as staff salaries. The remaining $85 million is lumped into the restricted funding sector, meaning it’s designated for specific purposes, as laid down by the state, federal or funding agencies.
Restricted or categorical monies, fund items such as the special education and gifted and talented programs and transportation. The district also has a healthy surplus of $4.5 million, about double the 3 percent reserve required by the state for economic uncertainties.
In addition, the state set aside a block of $445 million to rebuild physical education, music and arts programs, three areas that were substantially slashed over the years, with the increased emphasis on standardized testing. The money will also fund counseling positions, teacher recruitment and preschool programs.
For Gilroy that will probably translate to an extra $15 per pupil for the arts and up to $35,000 for PE. Most likely the cash will help the district purchase music and PE equipment, Brinkman said.
Districts will have to apply for a non-competitive grant to receive the arts and fitness funding. GUSD Trustee Tom Bundros was happy to hear that extra revenue will be funnelled into those two realms.
“A number of the board members have mentioned an interest in making sure both the arts and PE are alive and well in the district,” he said.
Another major component of the budget that has educators applauding is the repayment of Proposition 98 funding. Schwarzenegger promised to pay back the $2.9 billion he borrowed over the next seven years, beginning in 2007.
Still, despite the positive outlook, this budget’s not all roses and Champagne. Keiko Mizuno, GUSD director of business services, pointed out that politicians often draw up good budgets during election years, which can lead to cut-backs in the following years.
Also, Proposition 98 money is enticing because it’s such an ample sum, but everyone must remember it’s not a continual source of revenue. Next year’s budget is a good one, but the district must continue to spend conservatively in anticipation of a potentially skimpy future, Brinkman said, adding that much of the extra funding is one-time cash.
“It might be a very isolated situation, we need to proceed with caution,” he said. “There’s no guarantee that this type of situation will continue.”
Bundros echoed similar sentiments. While the board member said he doesn’t want to throw too much of a pessimistic light on the budget, the reality is that California’s revenue source is volatile.
“Of course we’re gonna add resources but we’re gonna have to do it carefully, with an eye on next year,” Bundros said. “It could be very different.”
