1 / 6

May Revision Proposal Highlights 2008-09 & 2009-10

May Revision Proposal Highlights 2008-09 & 2009-10. Now What Do We Do?. We have a BOGUS Budget!! “Best Optimum Guess Under the Situation” Governor released two scenario May budget revisions on 5/14/09

amory
Download Presentation

May Revision Proposal Highlights 2008-09 & 2009-10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. May Revision Proposal Highlights2008-09 & 2009-10

  2. Now What Do We Do? We have a BOGUS Budget!! “Best Optimum Guess Under the Situation” Governor released two scenario May budget revisions on 5/14/09 Unfortunately, or fortunately, we are under scenario 2 due to the failure of the ballot initiatives Scenario addresses a budget shortfall of $21 billion with 51% coming from cuts to education, health and social services, and early release of prisoners.

  3. May Revision – Chasing a Rock Downhill!! Governor’s Proposal: 2008-09 $1.3 billion reduction 2008-09 Revenue Limit $5,481.58 – 11.49% deficit or 88.510% funding Loss of $225.61/pupil or $580,000 2009-10 $1.4 billion reduction 2009-10 Revenue Limit $5,406.02–16.24% deficit or 83.76% funding Loss of $244.76/pupil or $600,000

  4. American Recovery Reinvestment Act Governor suggests that this funding should be used to help school districts offset the further proposed cuts to state funding State Fiscal Stabilization Fund estimate - $706,066 Loss of revenue in May Revision - $1.2 million Title I AARA estimate - $469,000 Don’t know when the funds will arrive Must comply with Federal Title I regulations IDEA Special Education AARA estimate – to be determined by SELPA Don’t know when the funds will arrive Must comply with Special Education regulations

  5. What Is Next? Governor issued a statement regarding the May Revision proposals “Based upon information I gathered in meetings I held while in Washington D.C., discussions with the legislative leaders, and the will of the people who said loudly and clearly in Tuesday's election that they want Sacramento to live within its means, yesterday I directed my Department of Finance to bring me additional options to cut state spending so that we can eliminate the need to seek borrowing in the form of a revenue anticipation warrant in the revised state budget I have proposed.” The LAO also recommends expanding upon the Tier II and Tier III flexibility adopted with the 2009 Budget Act. They specifically identify K-3 Class-Size Reduction and Home-to-School Transportation as good candidates for added flexibility. Legislature must act to reduce Proposition 98 before June 30, or will be forced to suspend in 2009/10.

  6. What Is Next? Legislative Analysts Office issued a harsh statement regarding the May Revision proposals LAO estimates that General Fund revenues for 2009-10 will fall short of the Administration's forecast by $3 billion, placing the overall Budget deficit at over $24 billion. Last week the Administration forecast a Budget deficit of $21.3 billion. The LAO concludes that the May Revision's assumption of an economic turnaround in late 2009 is too optimistic and as a result tax revenues in the budget year are overstated. The LAO also recommends expanding upon the Tier II and Tier III programs. They specifically identify K-3 Class-Size Reduction and Home-to-School Transportation and EIA as good candidates for added flexibility. Legislature must act to reduce Proposition 98 before June 30, or will be forced to suspend in 2009/10.

More Related