04.16.10: Good News Keeps Getting Better
By David Walrath
The Department of Finance (DOF) has released their March revenue estimates that conform with the previous good news from the State Controller. General Fund revenues for March were $670 million greater than the amount estimated in the budget. This means that for the 2009-10 year-to-date, the state is running approximately $2.7 billion or 4.8% better than what was projected in the January budget. March was the fourth consecutive month where revenues exceeded budget estimates.
The State Controller’s office is reporting that April income tax revenues through April 15 are on track to also exceed the budget estimate. While the next week of income tax filings (it takes at least a week to open all the envelopes postmarked April 15) will decide whether this continuing better revenue trend will be validated.
I continue to expect that the May Revision will show the state owing schools more money in both the 2009-10 and 2010-11 fiscal years compared to the manipulated Proposition 98 that was proposed in the January budget. This does not mean districts should act to rescind layoff notices or to take any other fiscal actions prior to the May 14 release of the May Revision.
Governor Releases Legislation for Teacher Employment Reforms
Senate Bill 955 (Huff) was recently amended to include the Governor’s budget proposal for teacher employment reforms. The bill will be heard in the Senate Education Committee on April 21, 2010. Even if the bill does not pass Senate Education, that does not mean the reform discussion will end; instead, the reform discussion will move to be part of the overall budget negotiations during May, June and July.
