Is a $28 million deficit the “worst-case” 2012-13 budget scenario for SCUSD? Is it possible that the deficit will be less?
Unfortunately, the projected $28 million deficit appears to be the best-case scenario. Under Governor Brown’s January budget proposal, public school districts will receive “flat funding” (see Question #2) that is contingent on voters passing a statewide initiative to raise taxes in November. This measure would increase income taxes on the wealthiest Californians and raise the sales tax. Revenue raised would be used to restore cash deferrals to districts only – at this point, it appears there would be no new dollars for schools generated by the measure’s passage. If voters reject the measure – or if it fails to qualify for the ballot – districts would face mid-year “trigger cuts” in early 2013. Education finance experts are recommending school districts budget for a $370 per student reduction in revenue to account for the potential trigger cuts. In our district, that would mean an additional $15 million in cuts, on top of the $28 million already anticipated, for a total of $43 million. Failing to submit a balanced budget to the Sacramento County Office of Education (SCOE) will result in a “negative” rating and create a substantial risk of a state fiscal takeover of our district.
