08.18.10: State Budget
By David Walrath
I am happy that the education jobs bill passed and will provide California public schools $1.2 billion in 2010-11. However, the state can go down to the January budget proposal level of school funding without violating the federal maintenance of effort requirement. They will be sorely tempted to do so if they really do suspend Proposition 98.
If the Democrats cannot get the tax increases they want, the Proposition 98 guarantee will drop by about $2.5 billion. In that case, there might not be a need to suspend Proposition 98 because the guarantee might drop low enough to only allow the budget to fund the revenue limit at the May Revision level and restore the child care cuts.
On the “glass half full” side, even if the guarantee drops or Proposition 98 is suspended, schools would still be $1.2 billion better off than the May Revision funding level. The federal funds can be carried over to 2011-12. SSDA recommends that after the State Budget is passed; schools strongly consider obligating no more than 50% of the new federal funds in 2010-11 and carryover the rest. State school funding levels for 2011-12 is still uncertain.
