As part of the state budget scenario (which obviously impacts us in RUSD), the Department of Finance must make a determination of whether the anticipated revenues outlined in the state budget ($4 Billion) has in fact materialized. The good news is that nationally, consumer spending and therefore revenues were up across the nation in July. The bad news is that is NOT the case in California, where essentially the first ½ Billion dollars did not show up in July.
Earlier in the month, the State Controller, John Chiang, in his monthly report indicated the loss. However, there were other opinions in Sacramento. This past week, the Department of Finance made a similar statement – indicating that revenue projections were off by 10% in July. Each month such might occur, makes it much more difficult to get back on target. Bottom-line, each month something like this occurs begins to ensure that there will, in fact, be a mid-year budget reduction for school districts and others, as outlined in the “trigger language” of the state budget legislation.
We have understood this concern all the way along. The real issue for us in RUSD, is what will our ultimate funding from the state be and how badly will if effect not only this year but the coming years as well. I think Sacramento needs to develop a real, accountable budget plan and stick to it -- rather than engaging in on-going smoke and mirror accounting.
"A real, accountable budget plan" will only come to pass when we control spending. The reason California continues to operate in such a budgetary black hole is because our budget cannot be balanced. Although we are sadly one of the highest taxed states, there isn't enough revenue to cover our spending.
ReplyDeleteYou are right in your assessment of what we need. But we have to realize that our spending is way out of control.