Finally a Budget

After 100 days and over 3 months past the deadline for the state budget we finally have one. Early Friday morning the Legislature passed the budget and sent it on to the Governor’s desk for signature. Friday afternoon, the Governor signed the budget along with about $1 Billion in line-item vetoes – thus the saga finally ends. It was only a couple of years ago when our total budget in California was $110 Billion – this budget comes in at $87.5 Billion.


Of course, now we are left with trying to figure out what all of it means, as most of it was done “behind closed doors” – such that even the Legislators arguably had limited information about what they were voting on. Additionally, as of about noon – no one seemed to know exactly what was in the Billion dollars of line-item veto items.

In a general sense, from all sources including the staffers of the Sacramento folks – there was something here for everyone. However, even in their terminology this is a budget of “smoke and mirrors” that is not realistic and leaves in place huge deficits along with a structural deficit for the future (read 2011-12 – 9 months away). There has been an overestimation of the revenues (“counting on money that is not there”) including federal help, sale of state buildings (that we will rent back from the new landlords), and optimistic tax revenues. Meanwhile there has been an under-estimation of the expenditures – that are surely going to be exceeded. So those that are newly elected in November will have quite a task on their hands in January as they take office.

As far as K-12 education, it seems that we are okay for the current year -- IF you believe the promise and that there won't be mid-year reductions from the newly elected state folks.  There is great concern about the deferrals (another $1.7 Billion) and a general acknowledgement that all of this makes next year (2011-2012) -- which was viewed as a "bad" year -- worse.

Kudos to UCR for $10 million for their/our Med School.  As we figure this all out and its impact on public education & RUSD we will let you know.