Monthly Archive for January, 2009

Things Could Be Worse

Everyone is focused on the economy. As the economy goes, so goes much of the funding for education. There are lots of places to watch. Some watch the stock market. Others watch federal economic recovery appropriations. Still others watch unemployment figures. I spoke this past week with colleagues in California, Nevada, and Arizona about their state budgets and the impact of education. Oddly and thankfully, I came away with a definite awareness that “things could be worse – much worse.” In the midst of our own financial deficits, comparisons of financial woes don’t really make anyone feel better.

Right now, I am staying very focused on our State Legislature and Governor Huntsman. So many things are in a state of flux right now that it’s nearly impossible to know exactly how this and next year’s budgets will be adjusted.

The State has some financial flexibility with funds appropriated to build roads, bonding options, distribution of surplus funds (rainy-day funds – - – hello, it’s raining), anticipated federal economic stimulus funds, and unallocated one-time funds from this year. Everyone seems to have a different way of putting this all together in order to point us in a clear financial direction.

As a District, we are being very fiscally conservative right now, even a little stingy. We are aware of general adjustments that could be made, but haven’t become specific at this point. Whatever resources we have, we want to be sure they are used in the most productive manner. I, with you, would really like to know what we need to do financially this year and begin to prepare for next year, but we don’t have much to go on. So we watch, wait, and evaluate our response to possible outcomes. For now, waiting for more information and details is an O.K. place to be.

By the way – no news yet on the Arbitration Panel decisions regarding assets or a ruling from the 10th Circuit Court of Appeals in Denver on the Herriman City appeal.

Issues to Watch

Welcome back!  I like being away.  I also like my work and enjoy getting back to a familiar routine.

January brings some important issues to watch.  First of all, I anticipate a decision from the Arbitration Panel on the division of district assets within the next two weeks.  Those decisions will determine which district holds title to buildings, property, furnishings, vehicles, and the percentage of cash within the existing District funds.

Also, on Jan. 14 the Herriman City appeal of a Utah Federal Court ruling will be heard in Denver.  This appeal relates to the constitutionality of the process by which Jordan District was divided. It’s uncertain when a ruling on the appeal will be issued.  It could be several months or many months. No one seems to know for sure.

Another important activity to watch is the workings of the Utah Legislature.  They begin Jan. 26 and conclude March 12. The big question on everyone’s mind is what the State budget for next year will look like.  I anticipate the Legislature will adopt a reduced budget from this year during the first week of the session and will adjust the allocations up or down depending on updated revenue figures received in mid-February.   I’m encouraged by Governor Huntsman’s continued emphasis on the need to keep education funds constant (at least minimize any reductions) and look for ways to increase teacher compensation over the next several years.