Legislature Approves State Budget, Which Now Awaits Governor’s Signature

June 19, 2017

On Thursday (June 15), California legislators approved the 2017-18 state budget, which now awaits Governor Brown’s signature.

The Sacramento Bee reported:

California lawmakers passed a spending plan for the coming fiscal year Thursday, meeting the state’s budget approval deadline with a $183.2 billion package that raises school funding, expands a tax credit for the working poor and gives the Capitol a greater say over University of California finances.

The main budget bill passed the Senate 28-10 and the Assembly 59-20 several hours later...

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Controller’s May Cash Report Shows State Revenues Meeting Revised Estimates

June 19, 2017

State Controller Betty T. Yee reported on June 9 that California revenues of $8.39 billion for May beat expectations in the revised budget proposal Governor Jerry Brown’s released last month by $133.4 million.

Total fiscal year-to-date revenues of $105.27 billion are $1.29 billion below projections on which the 2016-17 Budget Act was based and $2.70 billion higher than total revenues for the same 11-month period in FY 2015-16.

May personal income tax (PIT) receipts of $4.12 billion were $35.2 million shy of expectations laid out in the governor’s May Revision. For the current fiscal year, California has collected total PIT receipts of $71.78 billion, $265.7 million less than anticipated in the 2016-17 Budget Act...

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Trump’s Proposed Education Budget Slammed by Many Education Stakeholders

June 5, 2017

On May 23, the Trump Administration announced its budget proposal for education programs in Fiscal Year 2018, calling for reduced funding to a number of existing U.S. Department of Education programs, as well as increased support for charter schools and choice programs. To see the U.S. Department of Education’s overview of the Trump Administration’s education budget proposal, click on the link below:

https://www2.ed.gov/about/overview/budget/budget18/index.html

U.S. Secretary of Education Betsy DeVos, who was nominated for the post by Trump, supported the budget proposal, saying:

"This budget makes a historic investment in America’s students. President Trump is committed to ensuring the Department focuses on returning decision-making power back to the States, where it belongs, and on giving parents more control over their child’s education...

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National School Boards Association Offers Analysis of Trump Administration’s FY2018 Budget Request to Congress

June 5, 2017

 

(On May 24, the National School Boards Association released the following analysis of President Trumps Fiscal Year 2018 budget proposal for education:)

On May 23, 2017, President Trump released the Administration’s FY2018 budget request to Congress which calls for a number of program eliminations within the U.S. Department of Education, a few of which would impact K-12 programs. For a number of programmatic changes that are proposed, the Administration is urging school districts and states to utilize existing Title I funding to address priority areas, such as those for effective teachers and leaders (Title II), tutoring, and extended day learning opportunities (Title IV). While the budget request calls for a record increase of $1 billion to Title I grants for disadvantaged students, the increase in funding would be targeted to school choice...

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In “Cautious” May Budget Revision, Gov. Brown Hints Recession Could End Economic Recovery

May 22, 2017

In a Sacramento press conference peppered with frugal warnings like “there are only so many cookies in the jar” and “odds are we will be in a recession (two years from now)... Sooner or later, we are headed down,” Gov. Jerry Brown rolled out his 2017-18 May Budget Revision on May 11.

Noting that budget changes yet to be announced by the Trump administration in the nation’s capital could impact California’s budget plans, Brown added “The world of Washington is changing by the hour. It’s very hard to predict what they will do. But we’ve got to be wary and prudent,” Brown said, warning about the economy: “Make no doubt about it, cuts are coming in the next few years, and they’ll be big.”...

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Stakeholders Quick to Respond to May Budget Revision

May 22, 2017

Education groups, business groups and other stakeholder offered varying assessments of the Governor’s May Budget Revision, announced on May 11.

The Association of California School Administrators (ACSA) said:

“The governor continues to note the state’s economy is three years past the traditional recovery period following an economic recession and warns of the uncertainty created by the potential repeal of the federal Affordable Care Act. Gov. Brown also notes that the state continues to face ongoing liabilities such as state infrastructure and retiree health care benefits. Further, it was noted that the state has added considerable ongoing commitments since the passage of Proposition 30 and that the budget is projected to return to a deficit since a recession at some point is inevitable. Despite these cautionary warnings, the May Revision economic forecast reflects continued growth over the next four years...

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Controller’s April Cash Report Shows Sluggish State Revenues

May 22, 2017

In one of the most crucial months for collections, California revenues of $15.98 billion for April fell short of projections in the governor’s proposed 2017-18 budget by $1.05 billion, or 6.2 percent, State Controller Betty T. Yee reported on May 10.

For the first ten months of the 2016-17 fiscal year that began in July, total revenues of $96.88 billion are $1.83 billion below last summer’s budget estimates and $211.3 million shy of January’s revised fiscal year-to-date predictions. Total fiscal year-to-date revenues are $1.74 billion higher than for the same period of the prior fiscal year.

April personal income tax (PIT) receipts of $12.76 billion lagged by $707.6 million, or 5.3 percent. In the current fiscal year, California has collected total PIT receipts of $67.66 billion, or 0.2 percent less than January’s revised estimate. Last year, nearly 17 percent of PIT receipts arrived in April...

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LAO Posts Update on COLA for K-14 Education Programs

May 8, 2017

 

(On April 28, the California Legislative Analyst’s Office posted the following update on the Cost of Living Adjustment for California school districts and other state-funded education programs:)

The federal government recently released updated information that affects the cost-of-living adjustment (COLA) that the state provides to certain school and community college programs. Below, we provide background on the COLA, share the recent data, and examine its budget effects.

Background

Statutory COLA Determined by Price Index for State and Local Governments. State law specifies that certain school and community college programs are to receive an annual COLA. The statutory COLA rate is tied to a national price index developed by the Bureau of Economic Analysis (a division of the U.S. Department of Commerce)...

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New Study Finds More Equitable Funding but Persistent Access Gaps Three Years into LCFF

April 24, 2017

A few years into California’s Local Control Funding Formula (LCFF), school district funding is more equitable but access gaps persist according to The Steep Road to Resource Equity in California Education: The Local Control Funding Formula After Three Years, a new research study by The Education Trust–West. Through comprehensive data analysis, the report finds that LCFF has reversed inequitable revenue gaps that used to exist between the highest and lowest poverty school districts. The revenue gap was at its widest point right before LCFF, with the highest poverty districts receiving $829 less per student in 2012-13. The analysis found that funding three years into LCFF was more equitable, with the highest poverty districts receiving an average of $334 more per student in 2015-16.

While this research finds that funding has become more equitable, it did not find evidence that this funding has yet translated into more equitable opportunities for students in low-income schools...

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Controller: State Revenues Top March Projections

April 24, 2017

California revenues of $7.63 billion for March beat projections in the governor’s proposed 2017-18 budget by $1.73 billion, or 29.2 percent, State Controller Betty T. Yee reported on April 10. March revenues were just $56.5 million above estimates in the 2016-17 Budget Act signed last summer.

For the first nine months of the 2016-17 fiscal year that began in July, total revenues of $80.91 billion are $607.3 million below last summer’s budget estimates, but $837.1 million ahead of January’s revised fiscal year-to-date predictions.

March personal income tax (PIT) receipts of $3.93 billion topped projections in the governor’s proposed budget by nearly $1.09 billion, or 38.2 percent...

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