Good Budget News for CV Schools?

Governor Jerry Brown released his revised state budget for 2011-2012 Monday morning, and the numbers included more money for schools than the governor originally laid out in January. But school officials aren’t celebrating yet.

"The signs are positive, but nothing is final until the budget is passed and signed," said Jim Negri, superintendent for the  (CVUSD). 

Brown projected that the state will take in $6.6 billion more in tax revenue this year and next year than was originally expected, with $1.6 billion of that going to K-12 education and community colleges.

But that money is cash already owed to the schools. The Sacramento Bee reports that the extra cash would go toward reducing short-term IOUs to schools, which the governor's previous budget proposal relied on, in part, as a form of "backdoor borrowing."

While the money may help some school districts that have had to borrow money against those IOUs, SLUSD has tightened its belt rather than borrow money in recent years.

District officials are waiting to find out exactly what the new budget proposal might mean for schools at a conference scheduled for next week by School Services of California, Inc., a school consulting and advocacy firm.

The budget battle in the state capitol is far from over.

Any budget the governor proposes must be approved by the legislature before it can be enacted. Brown has been battling with Republican legislators over extending higher sales, vehicle and income taxes for five more years. On Monday, he floated delaying the income tax proposal while continuing to push for the other two, which he said would net a total increase in education spending of about $3 billion over last year.

“This is a program of taxes with a vote of the people,” Brown said at a press conference, while also proposing to lay off 5,500 state workers and eliminate various boards and commissions.

However, without agreement in the legislature, it’s unclear if or when Brown will be able to put the tax extensions before voters.

Faced with that uncertainty, school districts have been contemplating two very different budget scenarios—one if the tax extensions pass, and another far more draconian option if they don’t. 

WHAT THIS ALL MEANS FOR CVUSD

To date, Castro Valley Unified has been able to save one-time federal stimulus and state funding in 2010-2011 to avoid further reductions in education for the following fiscal year. As a result, the district is in a better position compared to many others, having to issue only 10 March 15 layoff notices —none of which are final— to cover teachers who are on leave.

Based on the one-time funding, the district does not plan to reduce programs, services or staff for 2011-2012. K-3 classes will remain at 25 students per classroom. The district continues to develop its 2011-2012 budget on a projected cut of $349 per average daily attendance (ADA).

However, if a tax extension does not occur, Castro Valley Unified could face cuts in K-12 staff, programs and education further down the road.

The district's school board will hold a special meeting on May 26 where staff will provide the board with key points from May's revised budget. The preliminary budget will be formally presented to the board during its June 9 meeting.

A final district budget will be adopted by June 23, even if a state budget has yet to be adopted.