Volume I, No. 17

March 12, 2009

California school finance is in for a wild ride over the next 18 months; Education’s Bottom Line provides information regarding the State Budget along with other pertinent information on issues affecting school districts.  

State Revenues Projected to Continue Slide

By Dave Walrath

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 from legislative leaders and the State Controller, we believe state revenues will continue to deteriorate for the next 16 months and could be between $4 billion to $6 billion lower than the estimates used when the state budget was enacted three weeks ago.   While some new revenues may occur and expenditures may be reduced because of the trigger mechanisms in the State Budget, they will not result in eliminating this possible state General Fund revenues reduction.  more...

Pooled Money Investment Board (PMIB) Meeting: March 18

By Duwayne Brooks

The PMIB is scheduled to meet at 2:00 p.m. on Wednesday, March 18, 2009 in the Secretary of State’s Auditorium in Sacramento to continue discussion of the current condition of the bond market and potential funding for infrastructure projects from the Pooled Money Investment Fund. The current freeze on disbursement from the Fund affects schools, highways, bridges, levees, housing, hospitals, environmental restoration, fire stations, veterans homes and others. There is an outside chance that a Special Meeting of the PMIB may be called before that date, but as of today the next announced meeting is March 18.

Bill Introduced to Expand SB 575 (Solorio) Requirements to Modernization Projects

By Patti Herrera

Assembly Member Jose Solorio (D-Santa Ana) introduced AB 1127, which would require all school modernization projects, including additions to existing campuses, to be equipped with automatic fire sprinkler systems. more ...

SB 363 (Hancock) – Funding for Energy Efficiency Retrofits of Schools

By Ian Padilla

As introduced, SB 363 states legislative intent to make $69 million available for energy efficiency retrofits of schools and other public buildings to supplement existing electrical utility rebates available to school districts to make the effective rebate $5 per watt.  more ...

If you have any questions on the articles in this newsletter, please contact the author of the article in question.

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Murdoch, Walrath & Holmes (MWH) has been instrumental in shaping statewide policy and implementing regulations for K-12 schools for more than two decades.  Strategic relationships have been forged with the State Administration through agencies such as the Department of Education, the State Allocation Board, the Department of Finance and the Office of Public School Construction and, on the federal level, with key Congressional Members and the Executive Branch.  MWH prides itself on having some of the best minds in K-12 education in virtually all aspects of school fiscal needs. 

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