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Tuesday, January 11, 2011

A Big Day for California

Yesterday, was a big day for Californians as newly elected Governor Brown brought out his solutions and plans to address the multi-Billion deficit/budget problem.  At 11 am yesterday, he held a rather short press conference about his plans including his 12 page PowerPoint presentation.  From my view the comments were blue sky, big concept, and casual -- though frankly lots better than what we had hoped for.  It was certainly nice to hear the Governor say that schools have "borne a disproportionate share of budget reductions in recent years."

So here are the basic specifics:
  • A 50-50 proposition to resolve the $25 Billion deficit -- that is 1/2 in program cuts and 1/2 in increased tax revenues (through a 5 year extension of existing taxes).
  • A June ballot measure that would allow 2/3 of the voters to determine to extend existing taxes that would otherwise cease at the end of the year (June).  However, this will require Legislative authorization (2/3) within the next 60 days.
  • General flexibility measures for education would be continued for an additional two years (including class size reduction).
  • Our deferrals from the state will continue and be expanded.
Questions that remain (and there are many) will be resolved in the coming days but some of the most interesting would be:
  • Will there be sufficient Republican support to get this on the ballot?  Some have already indicated that such an approval would be a violation of the "no-tax" pledge that was signed.
  • Will the voters agree to a tax extension vs agree to further reductions in State services?  If they don't extend the current taxes, then:
    • there is an additional $2 Billion loss to K-12 education, and
    • a $10 Billion hole that must be resolved with program cuts (that arguable will include public education as well).
  • While there is projected $12.5 Billion in cuts to state programs, will they really occur?  Many have NOT occurred in the past several years -- other than in education.
  • (While this is NOT our issue, as we have  basically agreed to NO layoffs for the 11-12 school year) -- The proposed ballot issue won't be determined until June -- and school district layoffs have to occur in March / May prior to June -- what should a district do? 
As indicated above there was a lack of specificity and lots of questions still be answered.  I am sure in the coming weeks we find out lots more -- from multiple parties.  Further, we will begin to see what Legislators and others actually do with these proposals.  Also weighing in on the issue included the Sacramento Bee as well as many other media sources around the state.

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