CA School Finances News Through May 22

May 22, 2009 by MikeMcMahonAUSD
Filed under: Finances

May 19th Special Election

The election results were no surprise as Props 1A-Prop1E all failed with only Prop 1F to reduce legislators salaries passing. The reaction from the supporters of failed propositions indicated they heard the voters loud and clear.

Federal Stimulus Monies

Citing a track record of innovative ideas with rapid and effective implementation, U.S. Secretary of Education Arne Duncan announced that Joanne Weiss will lead development of the “Race to the Top Fund” to catalyze innovation and restore America’s global leadership in public K-12 education.

Something to watch over the course of the Obama administration is the call for greater transparency is school budget data reporting.

As California budget woes get worse due to May 19 Special Election results, California begins to test the waters for federal assistance in terms of loan guarantees. While it is unlikely for the Federal government to tell California to “drop dead” is not necessarily going to be easy either. Treasury Secretary Timothy Geithner said Thursday it will require an act of Congress to have the federal government guarantee emergency loans for California, complicating the state’s efforts to find a way to pay its bills. While California has a large presence in Congress, they are known for being divided.

Sacramento News

After voters rejected ballot measures that would have restored state funding for schools, educators across California on Wednesday braced for $5.3 billion in cuts over the next 13 months. State and district officials predicted increased class sizes, additional teacher layoffs, more school closures and fewer arts and music offerings. Some districts could face insolvency.

The Bay Area Council and several good-government groups held a press conference calling for two ballot measures for a constitutional convention to overhaul the state’s guiding document and review decades of voter-approved amendments that have constrained the Capitol.

An initiative can begin circulating that imposes additional annual taxes on California residents who receive income in excess of $40,000 from pension distributions, social security, and the cash value of health care benefits.