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The State Budget and Cuts to Education

Posted on 10/20/2011

The current state budget contains a provision to implement further budget cuts if state revenues do not meet the targets assumed by the current budget. The following information is provided by Dan Garcia of the California Council on Adult Education.

How will additional budget cuts be triggered, and what will they be?

  • $1 billion Shortfall—No Action: If state revenues are forecasted to drop $1 billion, no cuts are undertaken. Assumption being that those revenues may materialize in the rest of the 2011-12 fiscal year.
  • $1-2 billion Shortfall—Cuts to other than K-12: If forecasts show state revenues drop $1-2 billion, $601 million will be cut, including the following $100 million each to UC, CSU, Developmental services, and In-Home supportive services.
  • $2-4 billion Shortfall—K-12 Would See Cuts: If forecasts show state revenues drop $2-4 billion, $1,860 million in education cuts would be made
    • $1,540 million cut to K-12 (approximately $258 per K-12 ADA)
    • $248 million cut to Home-to-School transportation (regular and special education)
    • $72 million cut to community colleges

Budget Projections
Two separate forecasts will provide the bases for the projections:

  • The State Legislative Analyst Office's November revenue projection
  • State Department of Finance forecast by December 15th

When Cuts Will Occur

  • K-12 revenue limits cuts would occur on February 1(this is the one projected to be $258 per K-12 ADA).
  • Transportation cuts would occur immediately upon application of the trigger.