May Revision Part 2
May 15, 2007
By David Walrath
NOTE: The Legislative Analyst's Office released their Analysis of the Governor's May revision today and correctly identified a technical error in the may revision. The effect is that ongoing revenue limit funding was underestimated by $366 million.
"Uses additional ongoing funds to support higher cost-of-living adjustment (COLA) and a variety of new programs. Underfunds 2007-08 K-12 attendance-related costs by $366 million due to technical error." Click here for the full LAO report.
In addition to the programs outlined yesterday, the May Revision proposes:
- $7.5 million to assist credentialed teachers who are not credentialed to teach science and mathematics to become credentialed in those subject areas.
- $2.0 million for development of an alternative teacher salary schedule.
- $2.5 million to expand the Administration Training Program.
- $20 million for English Learner supplemental instructional materials.
- $8.5 million to county offices of education to assist school districts for students to pass CAHSEE.
- $38.1 million to fund the Supplemental Instruction Program deficiencies.
- $2.0 million to FCMAT to audit property tax reporting practices by school and community college districts.
The May Revision is using multiple sources of funds to meet these new program costs. Almost all of the funds are one-time; consequently, almost all of the new programs are one-time. For example, the $50 million for Career Technical Education (CTE) teachers; and the $50 million for college prep teachers is coming out of the settlement agreement for high priority schools.
Approximately $100 million of the high priority school money cannot be spent and, therefore, is available for other purposes. It is being divided into two pieces. One piece being the CTE teachers and the other being college prep.
Additionally, there is significantly more money in the Reversion Account which can be used for one-time programs, as well as recalculated Proposition 98 obligations for the prior current and budget years. Only the budget year funding recalculation is ongoing money, the other money is settle-up money which is one-time funds. The total of one-time funds is approximately $600 million, while the total of ongoing is approximately $113 million.
Now that we have updated on what is in the May Revision, the question remains “What is not included?”
- Mandates are not funded.
- No revenue limit equalization.
- No COLA on the federal share of special education.
- No change to current declining enrollment formula.
- No funding for home-to-school transportation deficits.
The next step is for the Assembly and Senate Budget Subcommittees to finalize their versions of the budget for action by the Conference Committee. Now that the May Revision is complete, the real budget actions and decisions will commence.
For schools, the good news is that there are no mid-year cuts or deferrals and there is a higher 2007-08 COLA and there is new money for Proposition 98.
Please contact me if you have any questions at 916.441.3300 or dwalrath@m-w-h.com.
