June 4, 2008

Budget Update

Today the Senate Budget Subcommittee finished action on the K-12 Education 2008-09 State Budget.

The Senate acted to reject the Governor’s January and May Revision categorical aid program cuts. The Senate also acted to reject the Governor’s January and May Revision flexibility proposals. These actions are the same as taken by the Assembly.

The Senate did not adopt the Assembly’s $354.7 million in ongoing (rather than one-time) funding for child care programs.

The Senate adopted $2,068 million (Two billion, 68 million dollars) for 2008-09 cost-of-living increases (estimated 3.68%) COLA for all programs that usually receive a COLA, compared to the Assembly’s $894 million for a 1.64% COLA.

At this time it appears neither the Assembly nor Senate approved the Administration’s proposal to delay the special purpose apportionment until next April.

While the Assembly and Senate have added significant funds to K-12 education, the budget negotiations are just beginning.  SSDA continues to advise the June 30 school district budget be based on the more conservative recommendations made on June 2, 2008.

Dave Walrath

dwalrath@m-w-h.com