The economic news from Sacramento continues to worsen. Tax receipts through March were $1.2 billion below the Governor’s January estimate. The projected state budget deficit for 2008-09 continues to increase as economic conditions worsen and tax receipts come in lower than predictions. We will get a better picture in two weeks of the true amount of the state deficit when the Governor presents his May Budget Revision and the Legislative Analysts Office (LAO) presents its analysis of the Governor’s budget.

Both Republican and Democratic members of the Legislator have expressed support of public education. However, they have not been able to agree upon an overall budget balanced solution strategy. This gridlock may result in the 2008/09 State Budget not being adopted until late summer, at the earliest.

The Governor’s May Revise budget, due out May 14, will update the state’s economic situation and give the Governor the opportunity to propose changes to his budget balancing strategy. It is generally after the May revise when the Senate and Assembly roll up their sleeves and engage in building a budget compromise.

The San Diego County Superintendent of Schools has notified the State Department of Education that San Diego Unified submitted a positive certification, which means the district will meet its financial obligations for the current fiscal year and subsequent two years. This was contingent upon the board taking steps toward a balanced budget for 2008-09, which included issuing the layoff notices and developing a budget balancing plan. Lack of these actions by the district would have given the county the grounds for reevaluating the district’s fiscal situation and taking necessary oversight actions.

The Board of Education must approve the district’s 2008-09 budget by June 30, 2008, whether the State budget is approved or not. As the deadline approaches, the board continues to hold budget workshops to address the budget reduction implementation strategy and a restoration process if additional resources become available. Board members are slated to approve the budget at the June 24 board meeting.

The bottom line for the district is the 2008-09 school year will likely open with the budget passed in June, regardless of what happens at the state level.

For more information, visit the Budget 2008-09 and the Board of Education websites.