June 2, 2008

If it seems too good to be true…

Assembly Budget Subcommittee on Education

The Assembly Budget Subcommittee on Education proposed $2.3 billion in new K-14 spending.  The new funds would: 1) restore the proposed categorical aid program cuts in the Governor’s original January budget proposal and expended in the May Revision; and, 2) provide a partial 1.64% Cost-of-Living Adjustment (COLA) for all state funded revenue limit and categorical aid programs.

Senate Budget and Fiscal Review Subcommittee on Education

The Senate Budget and Fiscal Review Subcommittee on Education has not acted on the Proposition 98 May Revision proposals.  The Senate is scheduled to act on June 4 and 5, 2008.

Budget Conference Committee

The Budget Conference Committee will start next week and is expected to be completed for a budget vote by mid-June.  I expect the Conference Committee budget will contain the education funding increase.  I expect this budget to fail and the real negotiations to start immediately after.

Notwithstanding the Assembly and possible Senate action, I advise the following for your June 30, 2008 budget:

• May Revision and January program cuts

• Special Education restoration

• No COLA

• No new flexibility

• Deferred special purpose apportionments until January

~Dave Walrath

dwalrath@m-w-h.com