January 8, 2009
TO:
All SCCOE Staff
FROM:
Dr. Charles Weis, County Superintendent
of Schools
SUBJECT: Staff
Briefing: Latest on the State Budget
Hello everyone--
As the New Year begins, many of us are hoping
the governor and legislators have resolved to address the state
budget situation.
Given the dire economic situation in which California finds itself--the state's deficit
is projected to hit $42 billion over the next 18 months--we keep
thinking that something's got to give, and there will be significant
developments this month. (However, we've thought that in the
past weeks, too....)
Here's an update on recent budget news:
-
Last week the governor released his proposals for mid-year
revisions to the 2008-09 state budget and his first proposal for
2009-10. His proposals included revenue cuts, new taxes, and
borrowing. More than $5 billion of the cuts would come from K-12
schools and community colleges.
-
His proposal came on the heels of a plan by Democratic
legislators in December to combine tax increases with spending
cuts to save about $18 billion. The plan was framed in a way to
circumvent the requirement that two-thirds of the legislature
approve any tax increases. The governor vetoed that plan on
Wednesday.
-
While some hold out hope that the Democrats and the governor
still can reach an agreement on this plan, Republicans have
challenged its legality. Meanwhile, the Republican Caucus has
released a plan focused on spending cuts, including about $10
billion in cuts to education over an 18-month period.
-
The state controller said the state will run out of cash soon if
lawmakers don't do something.
Obviously, there is still a great deal of
uncertainty about what will happen. What we can be certain of,
though, is that whatever shape the budget plan ultimately takes, it
will be painful for all of us.
We already are feeling the pain here at the
COE. Some of our carefully developed plans for construction
projects were thrown into limbo a couple of weeks ago, when a state
panel stopped work on 2,000 public works projects throughout the
state.
We continue to look at ways to reduce spending.
One possibility is reducing or freezing all non-classroom expenses,
such as travel, contract services and supplies. We're also
exploring any options that might be available to raise revenue.
We will work as hard as possible to avoid
having to resort to layoffs. If we must reduce our staff in order to
balance our budget (either this or next year) we will attempt to do
it through (a) retirements, (b) not filling open positions, and (c)
eliminating temporary positions. Of course, prior to those actions,
we will freeze non-essential spending and perform many other
cost-saving efforts.
Fortunately, the
County
Board of Education has had
the foresight to put away 2 percent above the required amount in
budgetary reserves, so our situation is not as dire as it might
otherwise be.
Bottom line--we're doing everything we can do to
address budget issues, even as we wait for those in Sacramento to
clarify this very fuzzy situation. But it's both reasonable and
prudent to expect lean times ahead, and that's how we are
approaching things now.
I know it's a lot to ask, but in times like
these, it's doubly important to focus on our very important job here
at the COE. Let's concentrate on those things we can control,
and do all we can to help one another in that effort.
Thanks for reading.
--Chuck
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