Legislation & Advocacy: Budget Updates
03.02.10: 2010-11 State Budget Update
Click here to view the presentation by David Walrath to San Diego small school districts regarding the State Budget. read more
02.26.10: Legislative Analyst's Office Update - Part II
The Governor’s Budget proposal for child care and development programs included $316 million in savings ($147 in Proposition 98 and $169 million in federal funds) from reimbursement rate cuts, reduction in funded slots and various fund . . . read more
02.25.10: Mixed News in LAO Recommendations for 2009-10 and 2010-11 State Education Budget
First the good news: Based on current law, if there were no changes, the state would owe Proposition 98 an additional $2.2 billion in 2009-10 and an additional $3.2 billion in 2010-11 compared to the Governor’s budget proposed . . . read more
02.18.10: Department of Finance Confirms Improving State Revenues
The Department of Finance released their February revenue report that showed state revenues for the year were up almost $1.8 billion compared to the estimates made when the 2009-10 State Budget was enacted. Almost all of the $1.8 billion . . . read more
02.11.10: State Revenue Picture Appears to be Breaking
The State Controller has released his cash report (click here to view the report) for January . Again it shows state revenues are coming in higher than what had been estimated in the budget. This is a positive trend and we, . . . read more
01.25.10: SSDA Opposition Letter on Governor’s Budget
SSDA has sent a letter to legislators and legislative staff regarding the Governor’s proposed K-12 education funding for 2008-09 through 2010-11. SSDA was shocked when after vowing to protect education the Governor then . . . read more
01.20.10: Budget Update
On January 19 th the Senate Budget and Fiscal Review Committee heard the Governor’s Budget proposals regarding Proposition 98 funding. It was a hearing where all Committee members were present, not just the three members who sit on the . . . read more
01.11.10: 2010-11 Budget
SSDA presented a Webinar on the Governor’s Budget titled: “After the Storm: Wave Tossed or Beginning Calm” from 4:00 p.m. to 6:00 p.m. on January 12, 2010. The webinar presented all the details of the Governor’s budget proposal . . . read more
01.08.10: Governor Budget Includes a Negative COLA and Cuts $2.3 Billion From the Proposition 98 Guarantee
SSDA will present a Webinar on the Governor’s Budget titled: “After the Storm: Wave Tossed or Beginning Calm” from 4:00 p.m. to 6:00 p.m. on January 12, 2010. The webinar will present all the details of the Governor’s budget . . . read more
12.16.09: Mixed Message on State Economy
Both the State Controller and the Department of Finance (DOF) December Reports indicate continuing evidence that the California economy has bottomed; it may even be starting a very slow rebound. The bottom was lower than previously . . . read more
12.03.09: LAO Predicts Negative COLA
For the first time since the adoption of the current Cost-of-Living Adjustment (COLA) formula, school districts and county offices of education are facing a negative COLA that could be almost 1.0 percent. The current formula (in . . . read more
11.18.09: LAO Forecast Shows Mixed Data for Proposition 98 Funding
While the Legislative Analyst’s Office (LAO) projects a $1 billion Proposition 98 increase for the current year 2009-10, they also project slow state General Fund revenue growth for the next two years. State General Fund base . . . read more
11.11.09: State Controller Releases Revenue Report
The State Controller has released his report of October State General Fund revenues. For the first time in what seems like two years, the revenues were slightly greater than projected. The state income tax withholding and . . . read more
08.21.09: Governor Calls Special Session on Education
Governor Schwarzenegger Calls Special Session to Ensure California Is Eligible to Compete for Billions in Recovery Funding for Education Announces Legislative Package to Address Obama Administration . . . read more
08.13.09: Department of Finance Revenue Report
The Department of Finance has released their monthly finance report for July General Fund revenues. The report shows that July revenues were slightly better than the revenue forecast made for passing the State Budget. This barely . . . read more
08.11.09: State Controller Releases Summary
The State Controller is looking for silver linings in cloudy skies. Even though state tax revenues are continuing to decline, the rate of decline is slowing. This can be interpreted as good news because it is not worse news. The . . . read more
08.06.09: Community Day School Update
For categorical aid programs with absolute flexibility (referred to as Tier III), part of the final budget agreement was that funding would be based on 2007-08 rather than 2008-09. This means new Community Day Schools formed in 2008-09 . . . read more
07.30.09: Deferred Maintenance Funding Continues
The 2009-10 State Budget funds deferred maintenance for the second year of the five-year schedule. This funding should be approximately equal to last year’s funding for those school districts receiving deferred maintenance . . . read more
07.28.09: Is Now the Time to Sell School Sites?
The State Budget agreement includes significantly greater flexibility for school districts that have sold or will sell school property. If the district paid 100% for the site, the district could be able to put all the site sale . . . read more
07.28.09:Governor Signs 2009-10 State Budget
Today Governor Schwarzenegger signed the 2009-10 State Budget. There were no significant effects on education in the line item vetoes. Click here for the Education portion of the Governor’s State Budget Summary. read more
07.24.09: Legislature Acts
2008-09 Budget 3.0 and 2009-10 Budget 2.0 This morning the Senate completed action on the budget deal. The Assembly completed action this afternoon. This deal essentially incorporates the Assembly Floor Report that was . . . read more
07.23.09: Assembly Releases Draft Floor Report - Edited 2:32 p.m. to include Final Report
Following is the education portion of the draft summary of the budget agreement affecting schools. The home-to-school transportation provision reflects a 20% cut. The specific revenue limit deficit factors and categorical per ADA . . . read more
07.21.09: Deal
The State Budget deal is expected to be voted on Thursday. School funding appears to be at the May Revision proposed level. However, the deal also includes an $11.3 billion school funding maintenance factor. Language has not . . . read more
07.17.09: Budget Deal Closer But Sticking Points Remain
There are two major sticking points remaining for a 2009-10 State Budget deal: 1) borrowing from local government and possible litigation on that borrowing; and 2) the Proposition 98 maintenance factor. The maintenance factor is under . . . read more
07.15.09: Budget Deal Close
No Proposition 98 Suspension Current rumors are that the Legislature will retroactively cut $1.4 billion out of the 2008-09 state funding for schools. In essence, schools will receive what the Budget Conference . . . read more
07.08.09: Manipulating Proposition 98
SSDA opposes the suspension of Proposition 98. Currently, the legislative majority does not support Proposition 98 suspension. I, however, am concerned with manipulation where the guarantee is redefined to result in no need for . . . read more
07.07.09: No State Budget in Sight
As an indicator of the potential delay in reaching a budget agreement, the Senate has started policy committee hearings again. Policy committee hearings in the State Senate had been suspended until there was a budget. This . . . read more
07.02.09: Action Alert: Governor Proposes Suspension of Proposition 98
On July 1, 2009, the Governor proposed the suspension of Proposition 98 by $3 billion from the newly recalculated Proposition 98 minimum guarantee for 2009-10. [The minimum guarantee for 2009-10 increased because the 2008-09 . . . read more
07.01.09: Education Cuts Not Made Before Deadline
The Legislature did not pass the 2008-09 education cuts prior to the midnight June 30 deadline for such cuts. The state probably will look at ways to recover the education fund cuts through other means. At this time, however, . . . read more
06.30.09: Last Day for Legislature to Pass $3 Billion School Cut
Part of the Democrats’ budget proposal and the Governor’s May Revision is to include reductions to current year school funding, which also would reduce next year’s school apportionment obligation. These changes would relieve . . . read more
06.17.09: Budget Conference Committee Update
For those of you who like to read the summary first, the Budget Conference Committee (BCC) actions for K-12 increased school district fiscal and programmatic flexibility, reduced the cut to home-to-school transportation, reduced (by $680 . . . read more
06.12.09: Assembly Member Chesbro Protecting Small School Districts
Assembly Member (and former State Senator) Wes Chesbro is working to protect small school districts during the budget fights over education funding. He is working to give small districts cash flow alternatives for the school . . . read more
06.12.09: California Association of Realtors Opposes 55% School Parcel Tax Legislation
On June 11, the Senate Committee on Elections, Reapportionment and Constitutional Amendments passed the SSDA-supported Senate Constitutional Amendment 6 by Senator Simitian. The Committee passed SCA 6 over the express opposition from the . . . read more
06.12.09: School Finance Deferral Relief for Small Districts
Deferral Cash Flow The Small School Districts' Association (SSDA) is working on small school district cash flow relief from the school finance deferrals. The Association is working on alternative cash flow proposals as . . . read more
06.12.09: State Budget and Federal Stimulus Update
State Budget Today, June 12th, the Budget Conference Committee completed it first run-through of the May Revision proposals. The Committee left most of the major issues open for later action. Staff will be working through the . . . read more
06.05.09: Budget Conference Committee Discusses Issues: Takes No Substantive Action
Last night the Budget Conference Committee met to further discuss K-12 education cuts. The primary topics were the May 29 th proposal for a further reduction to the revenue limit in both current and budget year, as well as a 65% . . . read more
06.03.09: California Budget Project Releases Tables for K-12
The California Budget project has just released two tables that display the effects of school funding being proposed in the May Revision. It is a quick display that can be used with trustees, employees and the community. Click . . . read more
06.02.09: Budget Conference Committee: Transportation
The Budget Conference Committee will be reviewing Governor Schwarzenegger's May 29th proposal to cut home-to-school and special education transportation funding by more than $400 million, approximately 65%. Click here to . . . read more
06.01.09: Immediate Action Requested
Immediate Action Requested Immediate action is needed to protect small school districts from a $404 million (65%) cut to home-to-school transportation for 2009-10. There is no backfill for these cuts. This cut is part of . . . read more
05.21.09: Where Do We Go From Here?
Now that the election is over and the Legislative Analyst’s Office (LAO) has presented its analysis of the Governor’s May Revision, the next step will be legislative action. Assembly Speaker Bass, Senate President Pro Tem . . . read more
05.11.09: More Deferrals on Horizon?
The state budget picture is not brightening and will most likely get worse. Whether Propositions 1A, 1B and 1C pass or fail at the May 19 th special election, schools should anticipate more cuts and deferrals. . . . read more
05.11.09: Title 1 Basic Grants Proposed To Be Cut
President Obama’s education budget includes a proposed $1.5 billion cut to Title 1 basic grants. The budget does not appear to affect the other three Title 1 grants: the targeted, concentration and school finance grants. . . . read more
04.23.09: Extreme Hardship Update
The Small School Districts' Association (SSDA) has been asked to provide advice regarding the State Allocation Board (SAB) action to allocate extreme hardship deferred maintenance funding as installments over a five-year period. . . . read more
04.21.09: CDE SFSF Fund Update
CA Dept of Education Funding Funding Name: State Fiscal Stabilization Fund Eligible Applicants: institutions of higher education, local educational agencies Required Eligibility Criteria: School districts, county . . . read more
03.27.09: Tax Cuts and Expenditure Increases Not Triggered
As part of the February State Budget agreement, income tax increases would be reduced ($1.8 billion less state tax revenue) and some social service and health care programs would have some budget cuts restored ($947.7 million) IF the . . . read more
03.25.09: Supplement or Supplant?
The Legislative Analyst’s Office has recommended that the new federal stimulus funds be used to replace further cuts in state education funding from the February 2009 state budget. Today it was reported that Governor . . . read more
03.13.09: The Bad News Keeps Coming
Today the Legislative Analyst’s office (LAO) released their revenue and expenditure projections updated from the February budget passage. The following quote from that report includes the LAO comment that under their revenue . . . read more
03.11.09: State Revenues Projected to Continue Slide
School districts should not make expenditure commitments based on the receipt of new federal stimulus funds. After conversations with administration officials, hearing testimony during legislative hearings, and reading news reports . . . read more
02.20.09: Resolution of Thanks
SSDA urged the Legislature to adopt a balanced budget with revenue increases, fair program reductions, and fiscal reform including categorical flexibility. This budget, passed February 19, 2009, addresses those issues. These members . . . read more
02.19.09: State Budget Update
This morning the State Senate and Assembly completed action on both the 2008-09 mid-year budget adjustments and the 2009-10 State Budget including education funding and appropriations. While there were some adjustments in tax . . . read more
02.17.09: State Budget Update
Assembly Bill 4 of the Third Extraordinary Session is part of the budget compromise that is waiting for one more State Senate yes vote. The following are the provisions of the bill: Deficit Factors . . . read more
02.15.09: State Budget Update
The following is the State Budget compromise that would be adopted if the Saturday agreement is passed: Education Does not suspend Proposition 98. $8.6 billion in reductions . . . read more
01.14.09: Maybe Good News?
Yesterday Politico ( www.politico.com ) reported in a story by David Rogers that federal aid to education over a two-year period could be up to a combined $140 billion over a two-year period in the economic stimulus bill. The funds . . . read more
01.12.09: Budget Update
The Governor’s budget proposal includes approximately $5.3 billion in permanent reductions from what schools would have otherwise received from Proposition 98 and the State Lottery. The education community has always . . . read more
01.08.09: Over the Cliff – What’s at the Bottom?
With his veto of the Democrats’ budget balancing plan, Governor Schwarzenegger has started a whole new level of negotiation brinksmanship. For school districts, the situation has not changed. Expect at least $2 billion and probably . . . read more
01.06.09: Budget Update
The Governor’s State Budget 2008-09 mid-year changes and proposed 2009-10 education funding essentially cuts the September approved budget program funding by $2.0 billion in 2008-09 and $3.1 billion in 2009-10. The reductions to . . . read more
12.31.08: Governor Releases Draft 2009-10 State Budget Proposal
In an unexpected action, the Schwarzenegger administration today released summary documents of the proposed 2009-10 state budget. The California Constitution requires the budget to be presented by January 10 th of each year. The . . . read more
12.19.08: State Budget Update
Last night Governor Schwarzenegger proved he was no longer an outsider but that he had been captured in the Sacramento ethos of you keep negotiating until you get exactly what you want. After setting up his deficit clock and . . . read more
12.17.08: Pooled Money Investment Board Freezes Fund Releases
Today the Pooled Money Investment Board (State Treasurer, State Controller and the Director of the Department of Finance) froze any new state funding for infrastructure projects. This means any school project awaiting a state fund . . . read more
12.16.08: Republican Caucus Propose $10.6 billion K-14 Education Hit
In keeping with their pledge to balance the state budget with no new taxes, the legislative Republican Caucuses proposed $15.6 billion in program cuts and $6.5 billion in new revenues ($6 billion require voter approval) that do not count . . . read more
12.11.08: State Cash Flow Problem and School Facility Funding
The credit markets have frozen again. This means the state has great difficulty selling bonds or issuing notes because there is no market. This freezing is temporary (no more than four months) but is real in its effect on state . . . read more
LAO Special Session Report- Lower Cuts for Education
The Legislative Analyst has released his Analysis of the Governor’s proposed special session revenue and expenditure changes. While the Legislative Analyst’s Office (LAO) generally agrees with the Governor’s overall . . . read more
11.06.08: Governor's Press Conference on Budget
Following is a summary of key points discussed at the Governor’s Press Conference today: Close the current year gap: --$11.2 revenue shortfall. --Cut $4.5 billion from programs including education, health . . . read more
10.30.08: Tax Increase in Special Session? Don’t Bet On It...
Governor Schwarzenegger has indicated his desire for a sales tax increase to be enacted during the special session he is calling commencing November 5. He previously asked for a sales tax increase that was not . . . read more
10.29.08: What’s on the Special Session Agenda and How Big Is the Deficit?
Governor Schwarzenegger has called for a special session commencing on November 5 to deal with the state’s fiscal problems. As indicated in our prior update, while a lame duck session may have more political flexibility than would . . . read more
10.22.2008: California Special Session in November?
Governor Schwarzenegger’s spokesperson has indicated the Governor’s interest in calling for a Special Session on the budget in November. A lame duck session would include more than 30 members who have been termed-out of office, at . . . read more
10.07.08: More Challenges Ahead
Just Passed 2008 Budget At-Risk As the national and state economic situation continues to deteriorate, it becomes more obvious that the revenue and expenditure assumptions used for the 2008-09 State Budget are overly . . . read more
09.23.08: Governor's Enacted Budget - Total K-12 Funding
California ’s school districts, charter schools and county offices of education provide instruction and a variety of programs and support services for pre-Kindergarten through grade twelve (K-12) students. These programs . . . read more
09.19.08: Budget Deal Reached
Both Houses of the Legislature will begin work at 4:00 p.m. today on the latest State Budget Compromise. The Legislature had approved a budget by the required 2/3 vote in the wee hours of Tuesday morning only to have the Governor . . . read more
09.16.08: 2008-09 Budget Passed – Time Bomb for 2009-10
Last night and this morning, the Legislature passed a 2008-09 State Budget that relies on: 1) accounting changes for one-time money; 2) advancing income tax payments (which will have to be restored in later refunds); 3) expenditure . . . read more
State Budget Detail and Veto
No New Flexibility As expected, if the 2008-09 funding level was greater than 2007-08, the Legislature would not provide budget flexibility. The preliminary flexibility proposals were: Transfer categorical aid . . . read more
09.11.08: Budget Update
Rumors are circulating that a compromise budget vote could occur tomorrow in the State Senate and, if successful, then in the Assembly later that day or Saturday. Real discussions have been happening since last week. If it happens we . . . read more
09.09.08: Senate Rejects Republican Budget Proposal
The Senate rejected a Republican borrow and spend get-out-of-town budget that included using school lottery funds to bond a one-time $1.9 billion for schools. The proposal was to dedicate $140 million per year for the next 40 . . . read more
09.04.08: Assembly Budget Committee Hears Republican Budget Proposal
The afternoon of September 3, the Assembly Budget Committee heard the Republican proposal for the 2008-09 State Budget. This proposal relies on bonding lottery revenues for $1.9 billion in one-time money to fund . . . read more
09.02.08: State Budget Update
The Senate Republican State Budget proposal includes a proposal for lottery securitization (slightly less than $2 billion) in an amount sufficient to keep education funding at the 2007-08 level. The proposal is not a specific dollar . . . read more
August 22, 2008: Budget Update
The Assembly has adjourned for the weekend and will be back Monday but will be out Tuesday, Wednesday and Thursday of next week. They will be back in on Friday. The Senate also is out for the weekend and will be back Monday. They did . . . read more
July 21, 2008: State Ends 2007-08 Barely Above Estimates
The final 2007-08 General Fund revenues were released by the Department of Finance on May 18, 2008. The final numbers show General Fund revenues were just barely above the May Revision estimate. The trend . . . read more
July 9, 2008: Budget Conference Committee Acts: Don’t Believe It
Last night the Budget Conference Committee completed their actions on the state budget. Included in those actions was a 2.4% COLA for education programs, no categorical aid program cuts and over $8 billion in new revenues. . . . read more
June 24, 2008: Conference Committee Adopts Second Cash Flow Hit
The Legislative Analyst’s Office (LAO) compromise, adopted by the Budget Conference Committee, defers $2.8 billion in February K-12 payments and provides them in April. The February principal apportionment payment would be . . . read more
June 19, 2008: New Cash Flow Proposal Gathers Steam
Late yesterday, it appeared that the Administration’s May Revision cash flow proposal was receiving serious consideration by the Budget Conference Committee. The Administration’s cash flow proposal was to delay a number of . . . read more
June 16, 2008: Budget Update
Tomorrow June 17 th , the Budget Conference Committee will start discussing the K-12 education budget. No major actions are expected tomorrow during the first discussions because of the complexity of balancing the Proposition 98 . . . read more
June 4, 2008: State Budget Subcommittee Update
Today the Senate Budget Subcommittee finished action on the K-12 Education 2008-09 State Budget. The Senate acted to reject the Governor’s January and May Revision categorical aid program cuts. The Senate also . . . read more
June 3, 2008: State Budget Update and Recommendations
Assembly Budget Subcommittee on Education The Assembly Budget Subcommittee on Education proposed $2.3 billion in new K-14 spending. The new funds would: 1) restore the proposed categorical aid program cuts in the . . . read more
LAO Releases Analysis of May Revision
The Legislative Analyst’s Office (LAO) has released their analysis of the Governor’s May Revision. While generally concurring with the revenue and expenditure provisions contained in the May Revision, the Analyst . . . read more
May 15, 2008: More Detail on May Revision
Yesterday we published an update on the May Revision’s most significant changes. There were, however, a number of other changes included within the May Revision. There are also significant policy issues . . . read more
April 30, 2008 - School District Budget Development
The Governor’s Budget May Revision will be released on May 14, 2008. While there may be some good news for the current year, the May Revision does not look like it will have a positive surprise for next year’s state General Fund . . . read more
25% of All Districts With Qualified Budgets?
In testimony before the Assembly Budget Subcommittee No. 2 and Senate Budget Subcommittee No. 1, a representative from the Fiscal Crisis and Management Assistance Team (FCMAT) stated that up to 250 school districts could have . . . read more
March 17, 2008 - February General Fund Revenues Reported
The California Department of Finance reported the State General Fund revenues for February. The report reflects the uncertainty in the California economy. While personal income tax withholding receipts were greater than estimated, sales . . . read more
March 17, 2008 - Legislative Budget Hearings Start
The Assembly Budget Subcommittee No. 2 on Education held its first hearing on Tuesday. The hearing related to an overview of the Governor’s proposals regarding Proposition 98 funding as well as the Legislative Analyst’s Office . . . read more
SSDA Responds to Legislative Analyst’s Recommendations
The Small School Districts’ Association (SSDA) has reviewed the Legislative Analyst’s Office (LAO) response to the Governor’s 2008-09 State Budget proposal and makes the following recommendations regarding the LAO . . . read more
LAO Response to Governor Schwarzenegger's January State Budget Proposals
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 . . . read more
February 19, 2008- 2008-09 State Budget Draft Resolution
SSDA encourages all SSDA member districts to pass School Board resolutions and send them to their members of the Legislature in both the Assembly and the Senate. SSDA thanks the San Bruno Park School District for . . . read more
February 18, 2008 - New Revenue Figures Released by Department of Finance
The Department of Finance has released its new revenue report that reflects the December and January revenues. This report is based on adjusted July to January revenues and the 2008-09 mid-year revenue estimates revision. . . . read more
2008-09 State Budget Update
Please click the following link to view Dave Walrath's presentation on the Governor's Proposed 2008-09 State Budget: 2008-09 State Budget Update read more
February 14, 2008 - State Budget Update
February 14, 2008 UPDATED WITH ASSEMBLY ACTIONS TAKEN TODAY Today the Assembly followed the Senate actions regarding reducing the current year budget by almost $500 million for K-12 education by approving the Public Transportation . . . read more
Recommendations to SSDA member districts regarding response to the Governor’s Proposed State Budget
While I believe that the Governor’s proposed budget will not be the final enacted budget, it does not mean school districts should behave as if the deep severe cuts will not occur. Consequently, SSDA is making the . . . read more
More Money for K-14 Schools
May 14, 2007
Today the Governor released his May Revision which included a substantial number of new programs along with expanding existing programs. This update is being broken into two pieces with some of the more significant actions . . . read more
Governor Releases Proposed State Budget
Governor Schwarzenegger has released his 2008-09 Proposed State Budget. He proposes a suspension of Proposition 98 with a $4.4 billion K-12 cut for 2008-09. The Governor is also proposing approximately $400 million in current . . . read more
Mid-Year Cut Threats
As SSDA reported earlier, the Governor has requested the Legislature to make mid-year reductions of $360 million in K-12 funding. SSDA advises school districts to be cautious in committing new categorical funds that have . . . read more
Deficit Figure Keeps Rising
In August when the 2007-08 budget was passed, the structural deficit was expected to be $6 billion for 2008-09. By the middle of November this had grown to $10 billion when the Legislative Analyst released her projections. . . . read more
State Budget Update
NOVEMBER 6, 2007 Today Governor Schwarzenegger announced that he is requesting state agencies to prepare 10% cuts in their budget. While I have been predicting next year will be an ugly year, I do not . . . read more
May Revision Part 2
May 15, 2007
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 . . . read more
