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Growing economy
will help schools,
governor says

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By Richard Borreca
Star-Bulletin

A steadily increasing economy will help pay for more computers and air conditioning for public schools, according to Gov. Ben Cayetano.

The state Council on Revenues yesterday pushed the expected state revenues from a 3.7 percent to a 6 percent increase for the 2001 fiscal year.

That translates into an expected budget increase of $80 million, according to Michael Sklarz, council chairman.

"We are looking at a more steady, broad-based expansion," he said after the council members voted to increase the prediction.

The figure is a key to the state budget because it is used to calculate how much money will be available for the state to spend. The state's total yearly budget is about $6 billion.

But Cayetano noted before yesterday's meeting that he was expecting increased economic growth.

"We have come a long way," Cayetano said.

Sklarz explained that the state is seeing increases in nearly all economic sectors, ranging from construction and tourism to personal income and real estate.

"Most likely this is a more gradual improvement, not a boom, but it should be more prolonged," Sklarz said.

Cayetano wants to use any extra money in the next budget for increased help to public schools.

He said he would like to see the state's existing 6-to-1 computer ratio lowered to 3- or 2-to-1.

He also wants to increase the money for fixing up older public schools.

Although he did not say how much money would be available, Cayetano said he did not think there would be enough to provide all state workers with across-the-board pay raises as large as the 12 percent increase granted white-collar workers.