On May 16, 2011, Governor Brown unveiled his May Revision to the State Budget. In his presentation of the May Revision, the Governor focused on three key issues: 1) he continued to make the case that even with an increase in new revenue, California still has a significant budgetary shortfall and an extension of the current taxes set to expire is still needed; 2) he committed $3 billion of the new revenues to Proposition 98 and directed them to reduce a small portion of the deferrals; and 3) he intends to stay the course he began in January of ensuring passage of a balanced approach to solving the state’s budget problems.
Prop 98 is a constitutional amendment approved by voters in November 1988 and amended by Proposition 111 in 1990. The four provisions are: 1) a guarantee of minimum funding for K-12 schools and community colleges based on a specific calculation; 2) an allocation to K-14 education of 50% of the difference when state tax revenues exceed the Gann spending limit, with the remaining 50% rebated to taxpayers; 3) annual School Accountability Report Cards (SARCs) with at least 13 specific items for each school; and 4) a "prudent" state budget reserve. With a two-thirds vote of the Legislature and signature of the governor, Proposition 98 may be suspended for one year.
That said, Berkeley Adult School will raise fees to be more in-line with other adult education classes and consolidate some programming where duplication exists, targeting net savings of $90,000 (even better than the original Scenario A), which will contribute to a District budget shortfall (due to ending ARRA funds) of $700,000. We are feeling a huge sense of relief as we had been preparing for Scenario B, which called for over $1M in reductions. Now we follow through with plans for the 2011-12 school year and we are excited to serve our community.
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