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Will State 'Pull Trigger' on School Funding?

Report by Controller John Chiang shows tax revenue coming in at 10 percent below expectations, dampening hopes of an economic recovery.

California revenues dropped below projections again in July, pushing the state closer to "drastic trigger cuts" to public education, Controller John Chiang said Tuesday.

Chiang reported that tax revenues were $538.8 million—10.3 percent below projections included in the state budget, which predicated a growth economy.

The budget has built-in “triggers” for cuts if the revenues don’t flow. If the state comes up $2-billion short, it will start cutting school funding and other services.

The education cuts would kick in if finance officials determine revenue to be $2 billion or more below expectations as of December, according to a report in the Los Angeles Times. If enacted, the $1.5 billion in school reductions could shrink the academic year by as many as seven days in some districts.

If revenue falls $1 billion below expectations, community college fees will rise by $10 per unit, in-home care for disabled and elderly Californians would be reduced further, and state grants for local libraries would be eliminated, among other measures.

"While July's revenues performed remarkably similar to last year's, they still did not meet the budget's projections," said Chiang. "While we hope for better news in the months ahead, every drop in revenue puts us closer to the drastic trigger cuts that could be imposed next year."

 

Rich August 09, 2011 at 11:03 PM
Cuts to schools??? Sacramento government continues to get more stupid by the day. Want to cut? Take away any and all services (school/health care/social security/social welfare/unemployment) EVERYTHING from the illegal aliens in this state. Fine very buisness that employs them 5K per day they're employed Then seal the border tight! Then rip up all the public employee union contracts, including their rediculas pay, health care, retirement, holiday pay and re-do them to compare to the non union private sector. To bad those morons the liberals voted for will never understand. And you wonder why tax payers and buisness owners are leaving the state in mass???
JT August 09, 2011 at 11:20 PM
this state is going to continue to go in the dumps with the anti-business and pro-green agenda it has. Get a clue people, between that destroying business and the give everything to every special interest group and illegal they can find of course there is no money. They need an expert to figure this out?????
Alberto Barrera August 10, 2011 at 02:57 PM
No excuses, this was predictable.
Capo mom August 10, 2011 at 04:48 PM
Absolutely agree. Mid-year cuts are looking more and more likely. And the board has no contingency plan.
OC Mom August 10, 2011 at 06:47 PM
You see the reality that we face in our state. Unfortunately, anytime someone states the obvious we are called racist or intolerant. It would be nice if our state and country focused on the needs of its legal citizens more than the needs of special interest groups, unions and people who shouldn't be working and living in our country. I keep wondering what it will take before the average taxpayer wakes up and sees that his country has been destroyed. Too many folks are busy in the day in day out rat race and spend their evenings watching mindless TV. That's why our government (servants) have exploited us with their high pay and benefits. We are turning into a country of debt serfs.
KC August 10, 2011 at 07:08 PM
Yep, we made our bed by wanting to keep our property taxes low, and now many people have had to move out of state simply becuase they cannot afford to live here. So now the groups that rely on the money from it are facing cuts.
Capo mom August 10, 2011 at 07:18 PM
And in the face of this, won't teachers still be seeing salary increases (via step and column) this year?
Eric Spencer August 10, 2011 at 08:01 PM
California needs to be more conscerned about what's sustainable rather than what's "morally right...."
Eric Spencer August 10, 2011 at 08:01 PM
concerned
KC August 10, 2011 at 08:05 PM
Nope, it looks like they got a 10.1 percent pay cut while negotiations contine. The police on the otherhand are probably still getting the raises and expensive pensions.
M August 14, 2011 at 12:15 AM
KC you're right. Interesting how this ALWAYS comes back to teachers salaries....because they get RICH on their salaries now. Please people find another scapegoat, this is getting really tired and boring!
Capo mom August 15, 2011 at 04:50 PM
When is a cut not a cut? When you are a member of the teachers union and you are paid according step and column. In the 2009-2010 school year, as teachers were saying their salaries were being slashed, they actually increased by 2%.

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