USCS - CANEC

06/13/2003

This is the weekly Friday update on the progress of work toward the adoption of the 2003/04 budget. CANEC is pleased to follow this work on your behalf and to provide these updates.

The legislature will not meet its constitutional obligation to pass a budget by June 15th. The Budget Conference Committee recessed on June 11th without completing its work. The chair, Assemblywoman Oropeza, indicated that the committee would reconvene after action by the Big Five. It appears we are again facing an impasse over the state budget. Republicans have firmly locked themselves into a no new taxes position. Democrats say they refuse to cut more deeply into social programs. In addition, the effort to recall Governor Davis is now seriously affecting the willingness of some parties to make progress toward an adoption of a budget.

The education community, including the charter school community, agrees that the budget as proposed is the best deal K-12 Education will be offered this year. There is a high level of anxiety that a delay in adopting the budget could result in a new round of additional cuts.

The "Big Five" (Governor Davis, Senator John Burton, Senator Jim Brulte, Assemblyman Herb Wesson and Assemblyman David Cox) will be playing a major role in the next steps of the budget process. Most of their work will occur behind closed doors.

Although stalled on the issue of a tax increase, the Conference Committee took the following actions on K-12 education issues. Please note that none of these actions are charter specific.

Instructional Materials funding was reduced by $75 million with the inclusion of language allowing schools to continue to use AB 2519 adopted materials through July 2005.

Supplemental Grants funding was reduced from $242 million to $162 million.

Peer Assistance Review funding was reduced even further than the Governor had proposed in the May Revision. The Committee recommends a total 65% reduction in this fund, leaving only $32 million.

The AVID program was restored to full funding, with dollars coming from non-Proposition 98 dollars.

School library funding level was adopted at the lower level, leaving approximately $8.7 million in that fund.

School districts' Mega-Item transfer authority was reduced to no more than 10% out of any one program, and 15% in to any one program.

Reached a compromise providing:
* A reduction in required reserve for economic uncertainties (AB 1200 reserve) by 50% for the next two years;
* A reduction in the restricted reserve required for routine maintenance to 2%;
* Authorization of school districts to access up to 100% of 2002-03 categorical program carryover dollars in the budget year, excluding Special Education, Economic Impact Aid, Targeted Instructional Improvement Grants, Immediate Intervention/Underperforming Schools (II/USP), High Priority Schools Grant Program (HPSGP), Instructional Materials. This requires that first priority for use of accessed reserves must be to backfill the 1.198% budget year revenue limit reduction; and
* Established a deficit factor for revenue limits for the next two years.

The charter school community must still remain very vigilant during this budget process. If your school year is ending, please register to receive these listserv announcements at your home e-mail address over the summer. To do this, go to www.canec.org and choose Register to Participate in the lower right hand corner of the screen.

We anticipate continued non-stop activity on the budget through June. It remains entirely possible that CANEC will need to call on you with virtually no notice in the near future for letters and phone calls. Should charter schools be faced with the possibility of disproportionate funding cuts, we will immediately need your help in making our representatives aware that the charter community is following their actions.

Please continue to check your e-mail DAILY until Governor Davis has signed the budget. We continue to actively follow all phases of budget negotiations, but much of the work takes place behind closed doors and at all hours of the day and night. We will give you the greatest notice possible should we hear of any new threats to charter schools' funding and will continue to provide you with routine updates on budget issues as actions occur.

Helen Wallquist
Advocacy Coordinator, CANEC
916-448-0995/office
916-798-0965/cell
wallquist@canec.org


	Budget Update as of June 13, 2003 - Progress Has Stalled 06/13/2003 This is the weekly Friday update on the progress of work toward the adoption of the 2003/04 budget. CANEC is pleased to follow this work on your behalf and to provide these updates. The legislature will not meet its constitutional obligation to pass a budget by June 15th. The Budget Conference Committee recessed on June 11th without completing its work. The chair, Assemblywoman Oropeza, indicated that the committee would reconvene after action by the Big Five. It appears we are again facing an impasse over the state budget. Republicans have firmly locked themselves into a no new taxes position. Democrats say they refuse to cut more deeply into social programs. In addition, the effort to recall Governor Davis is now seriously affecting the willingness of some parties to make progress toward an adoption of a budget. The education community, including the charter school community, agrees that the budget as proposed is the best deal K-12 Education will be offered this year. There is a high level of anxiety that a delay in adopting the budget could result in a new round of additional cuts. The "Big Five" (Governor Davis, Senator John Burton, Senator Jim Brulte, Assemblyman Herb Wesson and Assemblyman David Cox) will be playing a major role in the next steps of the budget process. Most of their work will occur behind closed doors. Although stalled on the issue of a tax increase, the Conference Committee took the following actions on K-12 education issues. Please note that none of these actions are charter specific. Instructional Materials funding was reduced by $75 million with the inclusion of language allowing schools to continue to use AB 2519 adopted materials through July 2005. Supplemental Grants funding was reduced from $242 million to $162 million. Peer Assistance Review funding was reduced even further than the Governor had proposed in the May Revision. The Committee recommends a total 65% reduction in this fund, leaving only $32 million. The AVID program was restored to full funding, with dollars coming from non-Proposition 98 dollars. School library funding level was adopted at the lower level, leaving approximately $8.7 million in that fund. School districts' Mega-Item transfer authority was reduced to no more than 10% out of any one program, and 15% in to any one program. Reached a compromise providing: * A reduction in required reserve for economic uncertainties (AB 1200 reserve) by 50% for the next two years; * A reduction in the restricted reserve required for routine maintenance to 2%; * Authorization of school districts to access up to 100% of 2002-03 categorical program carryover dollars in the budget year, excluding Special Education, Economic Impact Aid, Targeted Instructional Improvement Grants, Immediate Intervention/Underperforming Schools (II/USP), High Priority Schools Grant Program (HPSGP), Instructional Materials. This requires that first priority for use of accessed reserves must be to backfill the 1.198% budget year revenue limit reduction; and * Established a deficit factor for revenue limits for the next two years. The charter school community must still remain very vigilant during this budget process. If your school year is ending, please register to receive these listserv announcements at your home e-mail address over the summer. To do this, go to www.canec.org and choose Register to Participate in the lower right hand corner of the screen. We anticipate continued non-stop activity on the budget through June. It remains entirely possible that CANEC will need to call on you with virtually no notice in the near future for letters and phone calls. Should charter schools be faced with the possibility of disproportionate funding cuts, we will immediately need your help in making our representatives aware that the charter community is following their actions. Please continue to check your e-mail DAILY until Governor Davis has signed the budget. We continue to actively follow all phases of budget negotiations, but much of the work takes place behind closed doors and at all hours of the day and night. We will give you the greatest notice possible should we hear of any new threats to charter schools' funding and will continue to provide you with routine updates on budget issues as actions occur. Helen Wallquist Advocacy Coordinator, CANEC 916-448-0995/office 916-798-0965/cell wallquist@canec.org