Governor AUSD Budget

Is this a good budget for Education?

Yes, the budget provides for several items as listed below. However, the budget poses several concerns. Specifically:

· The state’s revenues increase by 4.4% = and expenditures increase by 8.4%, resulting in a structural deficit of $6.4B. =

· The deficit spending is funded with the use = of nearly all of the $7B in the state’s reserves.

· The Governor proposes no major spending cuts= and no tax increases.

· A provision to reinstate the Governor’s authority to make mid-year cuts in state appropriations is included in the = Budget Proposal.

· The Budget Proposal does not address schools with declining enrollment (thus, AU= SD will lose $0.8M in revenue in FY06/07due to our continued decline in enroll= ment).

COLA

· $2.27B to fully-fund the 5.18% estimated statutory COLA for Revenue Limits and Categorical programs ($1.65B for K-12= Revenue Limits, $162M for Special Education, and $462M for categorical programs)

· AUSD: Estimate of $269 per AD= A for a total of approximately $2.57M

Growth <= /o:p>

· $156M to fund enrollment growth projected at 0.21%

Revenue Limit= Deficit

· $205M to reduce the revenue limit deficit fr= om 0.892% to 0.299%

· AUSD: Estimate of $32 per ADA= for a total of approximately $306K

Equalization = Aid

· $200M in funding to level up base revenue li= mits to the 90^th percentile

· AUSD: Estimate of $48.64 per = ADA for a total of approximately $465K

Mandate Reimb= ursement

· $133M to fund new mandate claims, plus an additional $133M to fund prior year claims

Proposition 4= 9

· $428M to expand before and after school prog= rams

Categorical P= rograms

New/Expanded

· Physical Education: $85M for physical education instru= ction in grades K-8, including teacher recruitment. Funding will provide minimum = site award of $3K.

· Arts and Music: $100M to develop and implement fin= e arts and music instruction in grades K-8. Funding will provide $20 per ADA with a minimu= m site award of $3K.

· Digital Classroom: $25M for classroom technology. Competitive funding will provide $3K per classroom.

· Career Technical Education: $30M to improve and expand Career Technical Education courses.

· California High School Exit Ex= am: $40M for instruction and support services for students struggling to pass CAHSEE.

· School Enrichment: $100M to hire teachers and princip= als for hard to staff subjects and schools. Funding will provided $50 per stude= nt to schools in the bottom three deciles on the API with a minimum award of $= 5K per school.

· Beginning Teacher Support and Assessment: $65M to support teachers in schools ranked in the Deciles 1 to 3.

· Science and Math Teacher Training: $1.5M to increase the number of te= achers trained in math and science at the UC and CSU.

· Healthy School Breakfasts: = $18.2M to continue to reimburse 10&= cent; per meal with one to two servings of fruits/vegetables

Other Categorical Funding Rates

· State lottery is estimated at $141 per ADA of which $118.= 50 is unrestricted and $22.50 is restricted under Proposition 20 for instructional materials.

· Instructional Materials funding is estimated= at $65 per PY CBEDS enrollment

· Special Education is funded for 5.18% COLA a= nd growth on state and local share only; no funding is available for COLA and growth on the federal share of funding

Other

· No proposal to shift state portion of STRS to school districts

· No proposal to address schools with declining enrollment

Adult Educati= on

· 5.18% COLA and 2.5% growth are fully-funded<= /p>

· “Use it or lose it” formula goes into effect – programs that do not use their ADA caps in both FY04/05= and FY05/06 will have cuts in their FY06/07 caps equal to half of the amount not used

Regional Occu= pational Centers and Programs

· 5.18% COLA and 2.7% growth are fully-funded<= /p>

Facilities

· Strategic Growth Plan: $26.3B in General Obligation bonds staggered over election cycles from 2006 through 2014

=	Authorization Amount (billions)
Purpose &n= bsp; = ; <= /o:p>	2006	2008-2014
Modernization	$3.3	$8.8
New Construction	$1.7	$7.7
Charter Schools	$1.0	$1.4
Career Tech	$1.0	$1.4

· Williams Settlement: $107M for the School Emergency Rep= air Account (for schools in Deciles 1 to 3)

· Deferred Maintenance: $269M to fully fund the deferred maintenance program