December 20 , 2010

State Revenues Show Continued Improvement

The Department of Finance December State revenue report confirmed the earlier report from the State Controller that revenues have improved by $1.2 billion compared to estimates. The revenue improvements are not sufficient to close a $28 billion state budget deficit for the next 18 months, but they do reduce pressure for deep mid-year cuts to current funding. For schools, the increased revenue does not mean more money owed to them because the Legislature suspended Proposition 98. What the new revenues do mean for schools is that the cuts for 2011-12 could be less because the Proposition 98 guarantee will not have the same possible very deep reductions.

The most recent Department of Finance report is the last one before the new Governor releases on January 10, 2011 his proposed state budget for the remainder of this fiscal year and all of 2011-12.

Wishing you a very Happy and Safe Holiday Season!

~Dave Walrath