Better, but not so good

So we have the results of the declaration of the “mid-year triggers” by the Department of Finance (DOF) which works for the Governor.  The news is that the DOF projections are better than the LAO (Legislative Analyst Office) and the State Controller.  That’s good news and shows that we are only short about 1/2 of the money that the Governor and Legislature projected out of thin air this past June -- we are only $2 Billion short rather than $4 Billion.

The impact of the shortfall falls predominately on Community Colleges and CSU systems across the state -- which is not so good news.  In my view, continuing to whittle away at our higher education system has huge long-term impacts as it ultimately diminishes our economic capacity in the state at a time when we need more that we ever have before.  

Beyond that, the primary impact on K-12 schools is the total elimination of transportation funding.  While that is a hit to all of us and does directly impact our schools, students, and communities -- it is disproportionate.  Transportation funding was built on a historic base rather than on a proportional ADA base.  As such, based on history, some got more, some got less.

Within 24 hours LAUSD announced publicly their intention of filing a lawsuit against the Governor and state for their mid-year actions.  Part of this issue is that the fact that LA has court-ordered desegregation busing -- and now the funding has vanished along with all the other transportation funding.

Before we get too thankful about all of this, we should also know that the Governor has essentially stated in his comments, “don’t worry it will get worse in 2012-13.”  And then in a curious move he went on to say that he is intending in his January budget projection to include as stable revenue his $7 Billion initiative for new taxes (Nov. 2012 ballot).  While we certainly like the idea of new revenue, I don't like the idea of expecting something before there is much evidence of it's existence (kinda' like expecting to get a bonus next year before there has been any commitment to such).

All of this again feels like "kicking the can down the road" and expecting that something wonderful will happen in our economic world without involving us in the process.  From my view and that of others, this only further complicates and compromises that future.