Volume I, No. 2

November 13, 2008

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

Deferred Maintenance Proposed for Cut

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

The Legislative Analyst has recommended the Legislature reduce state deferred maintenance match funding for 2008-09 and 2009-10. While no specific dollar amount has been identified, our discussions with staff indicate a proposed reduction of greater than $200 million. Yesterday there was a report that the Analyst was proposing to cut school construction and modernization funding. That report was in error; it is maintenance funds.  

Do Not Expect November Budget Action

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

Now that the Legislative Analyst has released his response to the Governor’s November Budget Revision proposals, the lame duck Legislature will have the fiscal and policy proposals in front of them. Do not expect any significant action. In a world of rising expectations Speaker Bass has commented that if the federal government bails out AIG, then they should also bail out states and protect programs for the poor. If the legislative leadership and the Governor want to wait until the federal stimulus package is completed and lobby for more funds for poverty programs, then November or December action is unlikely. more...

School Construction Funds Likely Part of Second Economic Stimulus Package

By Anna Ferrera -- aferrera@m-w-h.com

The Stimulus packages with school construction and repair funds could be taken up in the lame duck session as early as December.  In September the House passed a stimulus package including $3 billion for school construction through the 21st Century Green High-Performing Public Schools Facilities Act.  The Senate also took up its package which included $2 billion for school repair and renovation.   Both the House and Senate are on the record for a stimulus package investing billions of dollars to fund school construction. more...  

Division of the State Architect (DSA)-Approved Plans May Be in Jeopardy

By Patti Herrera -- pherrera@m-w-h.com

DSA-approved plans have a one-year time limit that may be extended to four years.  Under usual circumstances, this time constraint would not be problematic.  These are not normal times, however, and the unfortunate confluence of declining enrollment, the housing bust, and the new California Building Code that became effective on January 1, 2008 is causing anxiety for school districts that are dealing with delayed new construction and modernization projects. more...

Facility Legislation for Chula Vista Elementary School District

By Ernie Silva -- esilva@m-w-h.com 

While the safe advice for school districts with special facility needs is to wait for the next school bond, not all districts can heed it.  Last year, Chula Vista Elementary School District ran a bill to allow them to calculate eligibility in the same manner as unified districts – by attendance areas.  That bill, SB 1556, involved a number of amendments and a lot of work by Senator Ducheny and Chula Vista Superintendent Lowell Billings and his staff.  more...

Naylor Provisions and Exceptions to the Uses of Proceeds from Sale or Lease Of School District Surplus Property

By Tom Duffy -- tduffy@m-w-h.com 

As noted in last week’s edition of Education’s Bottom Line the financial constraints of school districts in recent years have caused districts to seek to convert property assets into cash as capital funds have been depleted and as general fund revenues have diminished. The process to surplus school district property is not simple and the Legislature found the need to weigh in to the policy debate, further limiting the authority of governing boards to sell property in order to resolve a general fund deficiency. 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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