May 15, 2007

K-12 May Revision In Flux

The Legislative Analyst has confirmed that the K-12 May Revision contains a $366 million technical error. The May Revision underestimates the 2007-08 revenue limit costs by this amount. The choices are to not approve the Governor’s new programs and use one-time Proposition 98 dollars to meet these ongoing costs, reduce other ongoing Proposition 98 funded programs or appropriate more State General Fund dollars than the Proposition 98 minimum guarantee.

Most of the education community will propose the bad policy of using one-time funds for ongoing costs because cutting other ongoing programs is worse, and there is no reasonable expectation that the state will overappropriate the Proposition 98 guarantee.  

If the May Revision seemed too good to be true, then it was.

Please contact me if you have any questions at 916.441.3300 or dwalrath@m-w-h.com.

~Dave Walrath