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Volume I, No. 3
November 20, 2008
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.
Key Legislative Staff Meets With Education Advocates to Discuss Implications of Special Session for K-12 Programs and Funding
By Ian Padilla -- ipadilla@m-w-h.com
With the State facing an $11.2 billion deficit in the current year and a projected $13 billion deficit in 2009-10, the Governor has called a Special Session to address this significant fiscal shortfall. The Governor’s proposal would close the current year deficit with both funding cuts and new revenue. Concerning K-12 education funding, the Governor proposes to cut Proposition 98 by $2.5 billion. Specifically, the Governor’s approach proposes to cut revenue limit funding but provides school districts with the flexibility to cut categorical programs. more...
Assembly Budget Committee Hears Testimony from DOF and LAO
By Ernie Silva -- esilva@m-w-h.com
The Assembly Budget Committee met on November 14 to hear testimony from the Department of Finance (DOF) and the Legislative Analyst (LAO) on the Governor’s Special Session Budget proposal. No public testimony was taken, but Legislators raised a number of important issues. Among those most important to education and education facilities are discussed below.
Committee Chair John Laird asked about whether the economy could get even worse than assumed in the new projections. The DOF responded that a more dramatic decline is possible, but that the multiple-year strategy is intended to help temper such events. In addition, there was much discussion about the lack of cash on hand. Normally, the State keeps $2.5 billion available, but this will not be available next year. There was also discussion of the difficulty in obtaining Revenue Anticipation Notes and a recognition of the likelihood that interest rates will be higher than assumed in the budget. The DOF and the LAO claim that the Governor’s proposal will reduce the need for the Notes.more...
By Tom Duffy -- tduffy@m-w-h.com
State law provides an opportunity for school districts to be entrepreneurial in meeting their revenue generation and facilities needs by way of cooperative endeavors with private sector and non-profit entities. Education Code Sections 17515-17526 are broad in their vision of opportunities and ripe with promise. These code sections nevertheless have been rarely utilized by school district superintendents and governing boards. 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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