EXTRA CASH FOR LOCAL ROADS SCHWARZENEGGER BUDGET PROPOSAL WOULD PROVIDE ADDITIONAL $1 MILLION.

Byline: Staff and Wire Services

SANTA CLARITA - Gov. Arnold Schwarzengger's latest budget proposal released Friday provides $1 million in additional transportation funds for Santa Clarita, money local officials intend to supplement road-repair funds, if the state Legislature approves.

The revised $115.7 billion spending plan includes $4 billion in unexpected revenue from an improving economy and a tax-amnesty program. It also provides more money for transportation - some $1.3 billion - and for local governments.

``It's certainly a pleasant surprise coming out of the Governor's Office,'' said Robert Newman, director of building and engineering for the city.

The state has stiffed Santa Clarita about $4 million in transportation funds since 2000, when it began raiding local coffers to cover a ballooning deficit.

The additional funding could augment the city's $4.5 million street maintenance budget for 2005-06 by paying for repaving and repairs on roughly 15 residential streets or a mile of major city road, Newman said.

``It does a significant amount (of work),'' he said. ``It really depends if we're on a major or residential street.''

But the money isn't in the bank yet. The Legislature still has to review - and likely will alter - the proposal.

``Although this is very preliminary ... this certainly is welcomed news,'' city Treasurer Darren Hernandez said. ``However, this isn't exactly new money because they are simply restoring funding that is supposed to be directed to local governments in the first place.''

The governor's new budget reflects a far brighter fiscal picture than the one he faced in January, which included spending $111.7 billion in the fiscal year that starts July 1, and closing an estimated $8.6 billion revenue shortfall through a combination of cuts and $4 billion in transfers and borrowing.

Schwarzenegger also proposed to use about $230 million of the unanticipated revenue to reduce class sizes in the state's worst-performing schools, and $57 million to create incentive pay for teachers who work at underachieving schools and to improve student test scores.

But educators say the budget plan slashes $2 billion in state-guaranteed funding for California public schools. When Schwarzenegger unveiled the earlier budget draft, superintendents from the five school districts in the Santa Clarita Valley attacked the proposal in a Daily News commentary.

``The governor's 2005-06 budget proposal, unveiled in January, breaks the promise he made to California's schools and takes even more money away from schools next year and in future years,'' it said.

``At the local level, annual cutbacks have decreased morale among educators and made it difficult to recruit and maintain teachers and administrators. ... They make it difficult to ensure up-to-date textbooks for every child.''

Schwarzenegger said the unexpected $4 billion is better spent to pay down the state's debt, increase funds for transportation and set aside a substantial reserve of about $1.4 billion - more than twice the usual amount.