February 23 , 2010

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 was in tax revenues related to the calculation of the Proposition 98 minimum funding guarantee for schools. If the Proposition 98 guarantee is not manipulated by the state, then schools should be owed more money for both the current (2009-10) and probably the budget year (2010-11).  

While the first seven months of a fiscal year should not be considered as a guarantee for the remaining 5 months, the direction has been for improving economic and revenue news for the state. This does not mean that prior cuts can be restored, but it does mean there should not be a need for new cuts in state funding to schools.

The loss of federal stimulus funds, however, does not appear to be restored so school districts will face program reductions if they did not reserve some of the federal stimulus funds for 2010-11.  

~Dave Walrath