School Budget Spared - for now

Today, Governor Brown announced the trigger cuts for the middle of the 2011-2012 fiscal year. Things aren't as bad for K-12 schools as feared. The Governor has declared that the economy is improving, and as a result, just $1 billion in cuts will be triggered. While higher education and child care took significant cuts, K-12 schools will be spared. There are some cuts to transportation funding, which amounts to about $11 per student.

As you may remember, this year's state budget included an assumption of $4 billion in additional revenue. If the money didn't materialize, automatic cuts would be triggered on January 1. Today's projection from the Department of Finance shows a shortfall, but less of one than many expected. Schools faced as much as $250 per student in mid-year cuts. Our district set aside the money in reserve to cover the potential cuts for the remainder of this year. We can now use that money to make up for some of our ongoing structural deficit over the next few years.

However, we are not out of the woods yet. Recent estimates are that California faces another $7 billion deficit for 2012-2013. So once again, the legislature will be contemplating cuts when discussing the next budget. That is, unless revenues can be raised in the November 2012 election.

In the mean time, we can enjoy a happier holiday season, knowing that things could have been much worse. Let's hope that the economy continues to improve and California can begin to reinvest in our children.