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Hidden Budget Impacts School Programs At a time when California school districts are already reeling from dismal and uncertain State funding levels, many of the state's school systems will face an additional challenge in 2009-10 as a result of the underlying economic crisis which created the state's budget problems in the first place. Because of plummeting value in their savings and retirement plans and home values, and the consequent collapse of their sense of economic security, many Americans are putting off retirement... Oh Where, Oh Where Did Our Flexibility Go? For those of you leafing through the Budget approved earlier this week in search of the categorical flexibility provisions proposed in May – just save yourself the effort. None of the proposals – including increased "Mega" and "AB 825" transfer caps, access to restricted ending fund balances, reduced Routine Restricted Maintenance obligations, reduced AB 1200 reserve requirements – survived the Budget process... Flexibility Proposal at Risk Following the bleakest Governor’s Budget in memory this past January, the May Revision that followed – while still severe – was a big improvement. This improvement was largely a result of increased revenue – most significantly, an increase of more than $800 million to provide a “zero” COLA instead of a “negative” COLA on the Revenue Limits. But the Revise also proposed a menu of flexibility options that districts could utilize in mitigating what is still a tough budget. To be sure, flexibility measures such as those proposed in the May Revision can never take the place of adequate funding levels... |