December 15th is Getting Close

The budget drama continues with all the focus being on the “mid-year trigger.”  In an earlier post (November 17^th) we reported that the State Controller stated that we weren’t making the revenue as projected by the 2011-12 California budget.  Just prior to Thanksgiving, we received similar notification from the non-partisan LAO (Legislative Analyst Office) with similar information.

So it appears that in the middle of this month the Department of Finance (DOF) will declare that such is necessary.  It would also appear that it will actually happen and there will be budget reductions for both K-12 and institutions of higher education in California.  As the Governor himself stated two months ago, “This year, for the first time in a long time, we passed a no-gimmicks, on time budget. Why would we undermine the plan that has earned widespread respect and helped stabilize California's finances?” 

More recently, Assembly Speaker John Perez publicly stated that it is unlikely there will be any significant changes, or attempts to change, the budget cuts required should the DOF’s December 15 revenue projections fall below the $4 billion in new revenues.

"The only way to avoid those triggers is to get revenue," Perez told KQED’s John Myers. "And that's not going to happen, because none of the members of the minority party have shown a willingness to engage in that kind of conversation."

So what does this mean to RUSD?  Specifically, it means a reduction of $10.4 million in our budget for this year.  The only way that we can manage that reduction (in the remaining 6 months of the budget year) is to take it out of our reserve – which further complicates creating a manageable budget for 2012-13 without making further reductions to an already emaciated system.

What is becoming more interesting by the day and the looming potential of a "mid-year" trigger is the real testing of the concept of "too big to fail."  Recently Dan Walters of the Sacramento Bee publicly talked about the potential problems of one our neighbors in San Diego (SD USD -- 2nd largest school district in the state).  I keep hoping (not a good strategy) that we will have leadership in Sacramento and we will realize that there is a REAL problem AND that we will create a plan to get us out of this interminable mess.