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September 16, 2008
State Budget Detail and Veto
No New Flexibility
As expected, if the 2008-09 funding level was greater than 2007-08, the Legislature would not provide budget flexibility. The preliminary flexibility proposals were:
- Transfer categorical aid ending balances to the district general fund
- Reduce contribution to the Routine Restricted Maintenance Account
- Increase transfers within existing block grants
No Attack on Basic Aid
There is no special provision reducing funding for basic aid districts
Mandate Deferral
The $155 billion for mandate funding from the settle-up account was deferred. This was one of the provisions from the California Teachers Association litigation regarding 2005-06 underfunding. This does not affect the Proposition 98 minimum guarantee, but does “save” the state these funds with an equal cost to school districts.
Categorical Aid Programs
The programs are at their 2007-08 funding level. No cuts, no COLA’s, no growth.
Revenue Limit Funding
|
2006-07 |
2007-08 |
Unfunded
5.66
COLA |
Funded
COLA
0.68% |
2008-09
Funded |
4.73%
Deficit |
Elementary |
$5,334.00 |
$5,576.00 |
$316.00 |
$38 |
$5,614 |
($278.00) |
High School |
$6,398.00 |
$6,688.00 |
$379.00 |
$45 |
$6,733 |
($334.00) |
Unified |
$5,562.00 |
$5,811.00 |
$329.00 |
$40 |
$5,851 |
($286.00) |
Budget Veto
For the first time in history, a Governor will veto the complete Budget Bill rather than blue pencil specific line item appropriations. The Governor has not mentioned if he will veto all of the budget trailer bills. He has indicated he will veto a higher percentage of other bills still pending his actions if the Legislature overrides his veto, as expected.
~Dave Walrath
dwalrath@m-w-h.com
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