After an all-night session of compromise and concessions, the California Senate passed a new state budget at 4:50 a.m. on Feb. 19. Republican Senator Abel Maldonado cast the deciding vote, allowing the budget to pass with the necessary majority vote of 27 to 12. Maldonado, while denouncing the budget as “ugly” and something that “takes a lot away,” voted for its passage with the consideration that the state of California is in dire need of economic reform.

“For many Californians, this budget is a real life and death situation,” Maldonado said in a press conference. “This budget is about shared pain and shared sacrifices.”

Before the budget’s passage, Governor Arnold Schwarzenegger had to declare a fiscal emergency and lay off 10,000 state employees. Lawmakers stated that without a new budget, another 10,000 workers would have to be laid off, and public works projects, like construction, would have to be postponed. Additionally, President Barack Obama placed an ultimatum on the budget: the state of California would not receive federal stimulus money unless a state budget was passed.

The budget, which would increase taxes, faced opposition from Republican senators who claimed the Democratic legislative majority was using the state’s financial problems as an excuse to continue excessive spending and raise taxes. Democratic Senator Barbara Boxer admitted to the budget’s imperfections, but urged Republican senators to overlook them for the sake of the Californian people.

“We have to put aside all this ego and put the people of California first,” Boxer said during the stalemate. “The people of California do not deserve the fate they will receive if it is not passed.”

Unlike prior legislation for temporary relief from the current financial crisis, the recently passed budget addresses the entire $42 billion state deficit with tax increases and state spending reductions. $14.9 billion in spending cuts will be made primarily in more costly spending fields, especially education. Principal Noreen Likins feels that the budget is completely flawed in that respect.

“Any budget that makes cuts in funding for education is not good for California,” she said. “It puts education in jeopardy. We shouldn’t have kids pay the price for the state’s failure to balance a budget.”

Likins stated that the spending cuts may affect students and teachers in negative ways. “Students won’t see any impact in the 2008-2009 school year,” she said. “The PAUSD [Palo Alto Unified School District] has been financially savvy, so there is enough money in the reserve to maintain the schools for a while. There has been and will be tightening in terms of the district budget. But people just don’t know what is going to happen.”

Some school districts with less funding have resorted to laying off teachers and staff to save money, and cutting art and sports programs out of their curriculums. Likins says that PAUSD has not had to resort to that yet. But in years to follow, changes for more financial prudence may include slightly larger class sizes and decreases in employee hiring.

“The last time the property tax revenue amount per student was so low [in the 2003-2004 school year], there were some lay-offs in this district,” Likins said. “Anticipated cuts may reduce our ability to staff at the same levels next year. But you can’t be certain about what will happen in the future.”