May 21, 2009

Where Do We Go From Here?

By David Walrath

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 Steinberg, and the Governor have all indicated their intent to pass an amended budget by June 15; they are starting Big 5 meetings and Budget Conference Committee hearings.  The Legislature is not having subcommittee or other committee meetings on the budget; instead the budget will be concentrated with the Conference Committee.

Because of the compressed timeline and the need to assure Wall Street and California businesses that California will have a balanced budget, my expectation is that this budget will contain cuts for K-12 education; the dollar amounts will be similar to the Governor’s proposal at the May Revision.

While the Legislature may change where the cuts are made, between categorical and revenue limit, the dollar cuts will probably be the same as proposed by the Governor.

For more detail on the LAO report: http://www.lao.ca.gov/2009/bud/may_revise/may_revision_052109.pdf

For more detail on Governor’s May Revision: http://www.dof.ca.gov/budget/historical/2009-10/may_revision/documents/May_Revision_2009-10_General_Fund_Proposals.pdf