Midyear cuts looking likelier

09-22-2011

Blog by John Fensterwald/Educated Guess

In the latest Field Poll, two-thirds of voters said it was a bad idea for the Legislature to impose automatic midyear cuts in K-12 and higher education if revenues come up short. Based on the latest economic data, a lot of Californians could be angry come January. The state’s cash receipts in August, combined with the latest ominous UCLA Anderson Forecast, make it increasingly unlikely that the state will take in enough revenue to avoid as much as $4 billion in layered, automatic cuts. And that should make districts, which are facing a possible midyear 4 percent cut or as many as seven fewer school days, increasingly nervous. After the first two months of the fiscal year, the state is running about 5 percent, or $596 million, behind the revenue forecast of $12.1 billion at this point. Sales and corporate taxes were in the red after two months, and the personal income tax – the biggest source of revenue – was slightly ahead. In total, July was a disaster, and August was only 1 percent off. (more...)

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Midyear cuts looking likelier

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