May Revise

So theoretically, it is done …we now know what the state budget is to look like for 2012-13.  Yesterday, the Governor released his “May Revision” of the budget.  Typically, this is the “budget” that in one form or another becomes the basis for the Legislature to act and ultimately provide the state with their plan – and, of course, it trickles down to local school districts and our budgets.  Actually, the “May Revise” is not much different than we have projected.  Not surprisingly, the Governor is counting on the passage of his tax initiative in November – if it passes his budget works, if it doesn’t I guess we start all over in the middle of the year.

Certainly there will be a lot of conjure about the various pieces and parts.  Obviously, there is LOTS of detail on a state budget.  However, there are two things that strike me at this time.

1. If the Governor’s tax initiative should pass in November, it would theoretically provide an additional $7 Billion to the state.  At the same time, it was announced yesterday that the budget deficit rose from $9B to $16B.  By my math, it would seem that the hole got bigger by $7B and if the initiative passes it raises $7B – sounds like it is even and the initiative provides no gain – at least in the short term. Humm...
2. The Governor has instituted a trigger mechanism that should his tax initiative NOT pass; the state would allow the reduction of another 15 days from the current school year (5 are allowed now).  Overall, on our calendar that would mean the last day of school next year would move from June 12^th to May 15^th.  I am not suggesting that we will be interested in doing that – just that is the state plan.

It seems abundantly clear that Sacramento has not figured out its finances, and of greater concern it does not value public education that provides a skilled workforce that provides economic development and drives the state economy.