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This coming year will present everyone in the State of California with major challenges. The Governor has told us that we face a $14 billion shortfall and he's laid out cuts for every state and local organization. Our state educational organizations have told us that school districts could face shrinking budgets and the numbers look like anywhere from a five to 10 percent reductions with likely cuts in the area of 7 percent in the near term. In addition the state has told us they intend to postpone payment dates on the money they do send us. So we'll have to scrimp and save until those payments come in, and that could be as late as next school year, sometime in September of 2008. We won't be letting budget constraints place constraints on excellence. The good thing is that the District does have sufficient reserves to make it through, if we are careful. On the plus side the district is developing an ongoing relationship with the new UC campus in Merced and will be starting a UC...
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