Volume I, No. 9

January 15, 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.  

Governor Schwarzenegger delivered his State of the State Address this morning to a joint convention of the Assembly and Senate.  His speech was brief and began with a long-term vision for California.  The optimism of his introductory remarks was juxtaposed by the brevity of the crux his speech:  California’s budget deficit and the inability of the state’s leaders to reach agreement on how to address it.  Schwarzenegger’s brief State of the State urged leaders in Sacramento to set aside partisanship and adopt a budget to begin resolving the State’s fiscal ails.  Education’s Bottom Line will continue to provide updates on budget proposals.

Federal Stimulus Package Circulated

By David Walrath -- dwalrath@m-w-h.com

The House Democrats are circulating stimulus legislation today. Although the federal stimulus package is very positive in addressing our current and budget year fiscal problems, it has not passed.  Consequently, school districts still need to do their second interim report based on the Governor’s proposed cuts.  You will still need to inform your community of the cuts that will be necessary if the stimulus package is not passed. more ...

Maintenance Factor

By David Walrath -- dwalrath@m-w-h.com

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. more ...

State Allocation Board Approves Emergency Regulations

By Ernest Silva -- esilva@m-w-h.com

The State Allocation Board (SAB) approved proposed regulations to create an “Inactive Apportionment” to temporarily suspend the 18-month fund release rules for projects that have: (1) received an apportionment before December 17, 2008, (2) have not received a fund release; and (3) for which the 18-month deadline will expire on or after December 17, 2008. In addition, the SAB approved issuance of a letter cautiously allowing financial hardship districts to utilize bridge financing. 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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