Fiscal year starts off stumbling

08-11-2011

Blog by John Fensterwald/Educated Guess

Districts that haven’t started negotiating with teachers for furlough days next spring should probably start now. Based on July revenues, districts could face the unpleasant need for them. Figures released by Controller John Chiang on Tuesday showed that the state took in 10.3 percent less than expected: $538.8 million below the $5.2 billion budget projections. That’s not a good sign, considering the Legislature built their budget assuming $4 billion extra over the course of the 2011-12 fiscal year. While receipts from personal income taxes were ahead of projections, sales and corporate tax revenues were off substantially. And July revenue doesn’t factor in this week’s turmoil over the lowered U.S. credit rating, with possible consequences for the economy in months to come. The Legislature built in tiers of cuts if revenues faltered. If there’s a shortfall of more than $2 billion of the $4 billion, schools will face up to seven furlough days. (more...)

Also: San Francisco Chronicle

Personal tools

Sections

Fiscal year starts off stumbling

Document Actions