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State funds for projects frozen

Local education is hit hardest as fiscal officers vote to cut off funds amid budget deficit.

December 18, 2008|By Jeremy Oberstein

GLENDALE — California’s top three fiscal officers voted unanimously Wednesday to cut off billions in funds for state highway, school and other infrastructure projects, effectively freezing millions of dollars in local projects already underway.

Glendale Unified School District was hit hardest by the state Pooled Money Investment Board, which voted unanimously to discontinue state-funded projects as state lawmakers continue to seek consensus on closing California’s $40-billion budget deficit.

Glendale school officials vowed to continue funding the projects as others warned that without an accord by state Democrats and Republicans to either cut expenses or increase taxes, California could run out of cash as early as February.

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The state board froze nearly $20 million for Glendale’s parks, streets and school projects, including at least one public works project in the city operated by the California Department of Transportation.

While education in Glendale was hit hardest, with the state indefinitely freezing $18.5 million in state-funded school projects, the city’s public works programs mostly escaped the chopping block.

City officials said the slew of high-priced and state-funded infrastructure ventures to repair bridges and roads in Glendale were managed well, with some costing less than initial estimates, saving them from the scourge of $3.8 billion in funds that were stymied by the state.

“All projects that have specific funding will probably be OK,” Public Works Director Steve Zurn said. “I figured, our projects were moving well, were underway and we were not going to be impacted. I’m not surprised we escaped.”

Education, however, was not as fortunate.

More than $18 million in state funding for modernization projects at Columbus Elementary School and Theodore Roosevelt Middle School has temporarily dried up, though school officials said there are no plans to halt the ongoing projects.

“You can’t stop a project that size without incurring significant . .  . damage,” said Eva Rae Lueck, the district’s chief business and financial officer.

School officials said they have enough in their operating reserves to continue funding the projects and pay contractors, though the district may not be able to maintain its same pace if the current fiscal crisis continues.

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