Monday, January 23, 2017

Legislative Analyst Office believes Brown is lowballing revenues | EdSource

Legislative Analyst Office believes Brown is lowballing revenues | EdSource:

Legislative Analyst Office believes Brown is lowballing revenues


Forecasters from the Legislative Analyst’s Office predicted in November that state revenues this year and next would be healthy, and they’re sticking to it in their latest budget outlook, despite economic pessimism underlying Gov. Brown’s proposed budget for next year. The difference could be a couple of billion dollars for K-12 schools and community colleges next year.
If Brown is right, K-12 schools will tread water next year, with little more than a 1.48 percent cost of living adjustment. For some districts, higher mandated costs for teachers’ and staff pensions alone will exceed new revenues. If the LAO’s forecast is closer, legislators and advocates will form a long line seeking more funding for early education, solutions to the teacher shortage, additional money for districts’ operating money through the Local Control Funding Formula and replenished funding to help county offices of education meet added responsibilities under the state’s new accountability system – to name a few.
The current year’s state budget is based on revenue forecasts from last May, so, in proposing next year’s budget, the state Department of Finance always makes mid-year revisions to the current year and adjusts actual revenue from the previous year. Because revenues so far fell below projections, the department has revised how much schools should have gotten in 2015-16, are entitled to get this year, and can expect to receive next year under Proposition 98, the formula that determines how much of the General Fund goes to K-12 and community colleges.

K-12 schools and community colleges are funded by a combination of General Fund revenues and property taxes. Because of a drop in projected state revenue, the Department of Finances lowered the Prop. 98 funding by a combined $885 million over two years.
SOURCE: LEGISLATIVE ANALYST'S OFFICE.
K-12 schools and community colleges are funded by a combination of General Fund revenues and property taxes. Because of a drop in projected state revenue, the Department of Finances lowered the Prop. 98 funding by a combined $885 million over two years.

But schools already spent last year’s allocation and are midway through their Legislative Analyst Office believes Brown is lowballing revenues | EdSource:


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