Return to Transcripts main page
CNN Live At Daybreak
Impact of United Airlines Bankruptcy on Schools in San Francisco Area
Aired December 23, 2002 - 05:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: And now to some business back here in the U.S. United Airlines is moving ahead with steps to transform itself after filing for bankruptcy protection earlier this month. Employees, suppliers and passengers are not the only ones being impacts by United's financial failures.
Our Jen Rogers looks at one local economy that is also bracing for change.
(BEGIN VIDEOTAPE)
JEN ROGERS, CNN CORRESPONDENT (voice-over): If United planes don't fly, some of these school buses might be sitting idle, as well. San Francisco International Airport is United's third biggest hub and the airline is the largest employer in the surrounding San Mateo County. United pays roughly $27 million a year in property taxes to the county, most of which go to schools.
The San Mateo Union High School District has already been told to budget for a 25 percent decrease in taxes from United.
BOB ARNOLD, UAL IMPACT ON SCHOOLS: For us it'll be, it'll be more of the nip and tuck. We'll cut back. We'll reduce some of the supplemental programs and services.
ROGERS: Programs under the microscope, technology, transportation, career and college counseling and a public safety officer. The impact on local schools should become more clear as United details its restructuring.
JOHN MALTBIE, UAL IMPACT ON SCHOOLS: If they come out with substantially the same business, maintain their maintenance center here, probably the impact is going to be very little, if any.
ROGERS: Still, the county has seen its unemployment rate jump from 1.8 percent to 4.5 percent in the last two years. It already had an employment center opened in conjunction with United to help laid off airline workers get back on their feet.
UNIDENTIFIED FEMALE: This is a schedule that's going to tell you when you're going to need to send your...
ROGERS: Thirty-three year United veteran Kay Forman will be out of a job in less than a month. She's using the center and is hopeful for the future. KAY FORMAN, UNITED AIRLINES EMPLOYEE: I think that we'll find a job. I don't think it will pay as well as United paid, which is kind of unfortunate because you need that higher salary living in this area. But, yes, I do think after I beef up my computer skills, yes, definitely, I'll be able to get a job.
ROGERS: For San Mateo County, it's that attitude they hope will keep the buses running as planned.
(END VIDEOTAPE)
CALLAWAY: And that report was from CNN's Jen Rogers.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Francisco Area>
Aired December 23, 2002 - 05:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: And now to some business back here in the U.S. United Airlines is moving ahead with steps to transform itself after filing for bankruptcy protection earlier this month. Employees, suppliers and passengers are not the only ones being impacts by United's financial failures.
Our Jen Rogers looks at one local economy that is also bracing for change.
(BEGIN VIDEOTAPE)
JEN ROGERS, CNN CORRESPONDENT (voice-over): If United planes don't fly, some of these school buses might be sitting idle, as well. San Francisco International Airport is United's third biggest hub and the airline is the largest employer in the surrounding San Mateo County. United pays roughly $27 million a year in property taxes to the county, most of which go to schools.
The San Mateo Union High School District has already been told to budget for a 25 percent decrease in taxes from United.
BOB ARNOLD, UAL IMPACT ON SCHOOLS: For us it'll be, it'll be more of the nip and tuck. We'll cut back. We'll reduce some of the supplemental programs and services.
ROGERS: Programs under the microscope, technology, transportation, career and college counseling and a public safety officer. The impact on local schools should become more clear as United details its restructuring.
JOHN MALTBIE, UAL IMPACT ON SCHOOLS: If they come out with substantially the same business, maintain their maintenance center here, probably the impact is going to be very little, if any.
ROGERS: Still, the county has seen its unemployment rate jump from 1.8 percent to 4.5 percent in the last two years. It already had an employment center opened in conjunction with United to help laid off airline workers get back on their feet.
UNIDENTIFIED FEMALE: This is a schedule that's going to tell you when you're going to need to send your...
ROGERS: Thirty-three year United veteran Kay Forman will be out of a job in less than a month. She's using the center and is hopeful for the future. KAY FORMAN, UNITED AIRLINES EMPLOYEE: I think that we'll find a job. I don't think it will pay as well as United paid, which is kind of unfortunate because you need that higher salary living in this area. But, yes, I do think after I beef up my computer skills, yes, definitely, I'll be able to get a job.
ROGERS: For San Mateo County, it's that attitude they hope will keep the buses running as planned.
(END VIDEOTAPE)
CALLAWAY: And that report was from CNN's Jen Rogers.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Francisco Area>
