Local school and water districts and the city of Scotts Valley expect to suffer from the statewide defeat of the state budget-balancing measures on the ballot Tuesday, May 19, officials say.
State voters turned down the five budget propositions by roughly two-thirds margins, while passing a freeze on legislators’ salaries in a deficit budget year by nearly 3-to-1.
“I’m not surprised, but disappointed,” said Scotts Valley Unified School District Superintendent Susan Silver.
She said the defeats will affect a 2009-10 district budget she will present to the school board for adoption next month, but the extent is unknown.
“The immediate result will be that we will not be rescinding any of the layoff notices we issued,” she said. “Then we will have to look at what revenues we will get from the state.”
The district had already notified the equivalent of 21 full-time teachers and counselors and eight non-teaching employees that they would lose their jobs.
“At the state level, we probably will continue to be placed in an untenable position,” Silver added. “But no matter what happens, in education we always just bounce back. Schools continue to teach and students continue to learn, and people deserve credit for that.”
San Lorenzo Unified School District, where the equivalent of 3½ teachers and five non-teaching employees already are being laid off, may lose an additional $1.5 million, Superintendent Julie Haff said.
She said the district had been “preparing for a worst-case scenario for some time,” but will wait to see on what the Legislature and governor agree upon.
“We are all focusing on doing the best we can to provide public education to every child entrusted to us,” she said.
The effect on the city of Scotts Valley will be less severe. The state could “borrow” more than $174,000 from the city to help close the budget gap.
That money would be deducted from property tax revenue the city receives each year.
“We just wouldn’t have that money in our (general) fund balance,” City Manager Steve Ando said.
Scotts Valley has not looked at possible cuts to city programs or personnel and has money saved from excess Measure C sales tax income, and this week won a lawsuit against the county that will bolster the city’s coffers.
The state could borrow close to $2.6 million countywide, and local water districts could feel the hit. The governor would have to declare a fiscal emergency to borrow the funds, and the money would have to be paid back within three years.
Lompico County Water District, with an annual budget around $400,000, could lose between $60,000 and $65,000 in property tax revenue, depending on property values in the district.
“If the governor declares a fiscal emergency, they can do that,” board member Lois Henry said.
About 10 percent of San Lorenzo Valley Water District revenue comes from property taxes, and Jim Mueller, the district general manager, said the governor has proposed borrowing 8 percent of that amount, about $50,000.
“I wouldn’t be surprised if that number creeps up,” Mueller said.
Scotts Valley Water District might also feel the pinch. Sixteen percent of the district’s revenue comes from property taxes, and the state could borrow the entire amount, district general manager Charlie McNiesh said.
For local election results: www.votescount.com
