Legislation Update - 05/24/2009

Today the Governor released a May Revision proposal that includes contingency proposals in case the ballot measures are rejected by the voters next Tuesday.

Overall, the Governor projects a budget shortfall of $15.4 billion if the measures pass and $21.3 billion if they fail. The Governor proposes $6.3 billion in expenditure reductions, with an additional $3.4 billion in cuts proposed as a contingency if the ballot measures fail. It should be emphasized that some of the cuts are CURRENT YEAR reductions, even though it is already May.

The Governor proposes that virtually all the cuts to education would be imposed on district and county office of education revenue limits. No new cuts are proposed for most categorical education programs.

Key points about the May Revision proposal are:

2008-09 (current year):

Eliminate funding for High Priority Schools Program -- $114 million Reduce school district revenue limits one-time by $694.3 million. Although this cut is "one time", on-going reductions are proposed for 2009-10 (see below).

Contingency cuts if ballot measures fail:

Further reduce school district revenue limits by $617.3 million. [Note: The Governor also proposes this as a "one-time" reduction. There is a smaller on-going reduction of $475 million proposed for 2009-10 as part of the contingency plan.]

2009-10 Proposition 98:

Reduce school district revenue limits by $950 million. [Note: it is important to emphasize that this cut is NOT additive to the $694 million cut proposed in 2008-09. The Governor is proposing that the $950 million reduction would come from the revenue limit level before the $694 million cut. Phrased differently, districts would lose $694 million in 2008-09 and $256 million more, for a total of $950 million, in 2009-10].

Defer $640.3 million in school district apportionments from 2009-10 to 2010-11.

Contingency cuts if the ballot measures fail:

Reduce school district revenue limits by $475 million. [Note: this amount is less than the one-time reduction proposed for 2008-09]. Defer an additional $1.038 billion in revenue limit payments from 2009-10 into 2010-11.

Summary—K-12 Education

If the ballot measures fail, the Governor is proposing:

That school district revenue limits be reduced one-time by $1.312 billion (about 3.61%) in the current year.

That school district revenue limits be reduced on an on-going basis, beginning 2009-10, by $1.425 billion (about 3.92%).

That $1.038 billion in other revenue limit payments be deferred from 2009-10 into 2010-11.

In making these proposals, the Governor argues that "these reductions will be largely offset by the $3.3 billion in federal State Fiscal Stabilization Fund and the $2.8 billion in other federal funding increases which are being provided to schools through the federal American Recovery and Reinvestment Act."


The Governor’s May Revision proposes to give school districts "the option to reduce up to one week of instructional time at local discretion, limited to no more than three years."

Carrie Krueger Marovich
for School Innovations & Advocacy
1201 K Street, Suite 710
Sacramento, CA 95814-3973

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