LAO Response to Governor Schwarzenegger's January State Budget Proposals
By David Walrath
February 20, 2008
Just as Governor Schwarzenegger starts the annual State Budget dance, the Legislative Analyst’s Office (LAO) releases her response on how the dance should progress. Today the LAO made the following major recommendations:
- No COLA for 2008-09 and suspend Proposition 98, but no cuts to ongoing programs between 2007-08 and 2008-09. (For example: No reduction in base revenue limit per ADA funding).
- Fund $205 million for 2008-09 K-14 mandates (but delete $150 million in prior year mandate settle-up funds).
- Delay Quality Education Investment Act (QEIA) implementation for one year (saves $450 million).
- Create four new base program and categorical education block grants by consolidating existing programs. (Click here for LAO's K-12 Categorical Reform section)
- Statutory COLA of 5.4% (but recommends a new COLA calculation different than current law and the Governor’s new COLA index proposal).
Follow this link to go directly to the LAO's full education analysis.
School districts need to continue developing their 2008-09 budgets based on the Governors original proposals. The LAO includes new revenues as part of their budget solution. If the Legislature does not pass new revenues then the Governors more draconian cuts will be considered.
The legislative budget subcommittees will start their hearings in the next two weeks.
Come to the 2008 SSDA Annual Conference to learn the latest on the state budget proposals. Small school district representatives will be able to share their actions to address the 2008-09 state budget challenges. Visit this link for Conference information.
