The $18.3 million budget was approved based on Gov. Gray Davis' vacillating education funding proposals.

"The budget is based on the governor's May revise," said Linda Latasa, the district's assistant superintendent of business. "Nothing has been approved [by the state legislature]." And, Latasa added, "The May revise was built on a half-cent tax increase and a bond being passed." Those additional sources of revenue are merely assumptions and have yet to be approved.

"One part doesn't want to see a tax increase, another part doesn't want to see programs cut," said Superintendent Mary Ann Park.

On June 10, board members—minus Dorothy Rouse, who was absent—unanimously passed the budget, which has a total revenue of $18.7 million. The budget included cuts to virtually every category of expenditures; however, Fisher Middle School teacher Sue Frey questioned why teachers seemed to take a bigger share of cuts than other employees did.

"It is definitely appropriate to say everybody took a proportional hit," Latasa replied, pointing out that specific expenditures had been shifted into other categories, and that a new counselor position contributed to what looked like an increase in administrators' salaries.

"Is it correct to say that all employees of our district took a zero percent [pay] increase?" Frey asked.

"Yes," Latasa said.

And, Latasa said, expenses that had in the past been included in the budget, such as teacher stipends, were actually funded by state categorical revenue. Because categorical funding is up in the air, those expenditures and programs were not part of the budget.

Latasa also mentioned that the district would be funded differently next year. "We will be basic aid. The question is, what will happen to basic aid?" Latasa said.

This year, the district's property tax revenue is close to, but not above, the state-imposed revenue limit, making it a revenue-limit district.

For 2003­04, "our tax revenues will be higher than our revenue limit," Latasa said. As a result, the district will become a basic aid district. In the past, basic aid districts received $120 for each student and were allowed to keep any property taxes they received that exceeded the revenue limit. What the governor has proposed, however, is to take a portion of the $120 per student; he had also proposed to take excess local property taxes, but withdrew the proposal after the legislature rejected it.

Neighboring districts, such as Saratoga Union School District and Los Gatos­Saratoga Union High School District, are currently basic aid funded and are exploring a parcel tax, which Los Gatos Union already has, to make up their budget shortfalls.

The board will meet on Aug. 5 at 6 p.m. for a workshop and Aug. 12 at 6:30 p.m. for a regular board meeting. Both will take place in the Daves Avenue Elementary School library.