State Budget Analysis
Thanks to the new “majority rule” budget, California passed a $129 billion budget ($86 billion general fund infringement) on time. The budget did NOT include any tax extensions but instead relies heavily on deep cuts to social programs, higher education and hopes to tap into $4 billion of unexpected revenue. If the unanticipated revenue fails to materialize, deeper cuts will be made to social services, universities and it is possible that the K-12 school year may be shortened by seven more days (on top of the five days that Districts could already negotiate). Additionally, the state may need to cut $2.1 billion if voters do not agree to tax extensions by November 2012. So, the abridged version of this message is: there are no cuts to education this year if all $4billion in unanticipated state revenues materialize. Read on for the details…