CALIFORNIA SCHOOLS NOT BANKING ON NEW TAXES FROM GOV. JERRY BROWN UPDATED + LAO Report

by Chris Megerian/LA Times PolitiCal: On politics in the Golden State | http://lat.ms/KrGJfy

Photo: Legislative analyst Mac Taylor at a news conference last year. Credit: Rich Pedroncelli / Associated Press

May 2, 2012 | 11:12 am in Sacramento ::  Gov. Jerry Brown hopes his tax plan will keep schools from making deep budget cuts. But most school officials aren’t counting on the revenue being there after voters cast their ballots in November, according to a new report from the Legislative Analyst's Office.

The nonpartisan office, which provides budget advice to lawmakers, surveyed hundreds of school districts and found that almost 90% are taking a wait-and-see approach before factoring in the extra money.

“In contrast to the governor's approach in building the state budget, only a limited number of districts plan to build their budgets assuming the ballot measure will pass,” the report said.

The Legislative Analyst’s Office has previously warned that schools would probably reduce spending as a precaution in case Brown’s tax plan fails. Otherwise, it would be too difficult to make budget cuts in the middle of the school year.

from the LAO Report Districts Planning for Challenging Budget Situation in 2012–13. In addition to constrained resources, districts face the additional challenge of budgeting for the upcoming school year without knowing whether voters will approve a revenue–generating ballot measure in November. While the Governor's state budget proposal includes these potential revenues (and corresponding midyear trigger reductions were the voters to reject his tax measure), the vast majority of districts plan to take a more cautious approach. Specifically, because districts have a difficult time making large reductions midway through the school year, almost 90 percent of our survey respondents plan to wait for the results of the November election before spending the potential tax revenue. Districts request that the Legislature maximize local flexibility and provide them greater latitude to manage reductions at the local level. Specifically, were additional state funding reductions to be necessary, districts hope the state focuses them on restricted programs and activities while avoiding additional cuts to their unrestricted funding (such as revenue limits). Restoring state funding deferrals also is a high priority for districts, as a rising number have had to borrow or make cuts to accommodate these delayed state payments, and our survey suggests even more would do so were the state to implement additional deferrals in 2012–13.

 

Brown wants voters to approve higher taxes on wealthy residents and an increase in the sales tax. If the initiative doesn't pass, there would be $5.4 billion of budget cuts, with most of them falling on public schools. School officials have said they need new laws that will make it easier for them to reduce spending halfway through the school year in case voters reject the taxes.

[Updated 2:25 p.m.: H.D. Palmer, a spokesman for Brown's Department of Finance, said the governor's tax plan "is designed to renew the state’s investment in education and avoid deeper cuts to schools."

He added, "We will continue the discussions we’ve already begun with school officials to develop a menu of measures to achieve savings if the initiative does not pass."

Year Three Survey 050212[1]