Yesterday the leaders of MASA met individually with leaders at the Capitol. We met with representatives in the Governors Office, the Senate Majority Leader and all the chairs of the Education Committees. We asked them what they saw as the final outcome of the whole legislative process in regard to K-12 funding for next year. We listened closely, and are now providing you with our best prediction. We are aware of many legislators arguing hard to not cut K-12 funding. We will continue to be tenacious in our defense of K-12 school funding.
Our revenue projection for 2010-11:
This is our best projection based on assembling a lot of financial and political information. Recognize that we are not infallible. However we are as close to the process as anyone. We believe that there will not be a cut in the basic formula funding for 2010-11. You may find some smaller cuts in a few programs and may also receive some limited levy authority for funding for some increased costs.
State borrowing from schools:
The state will likely delay some payments next year and we may see some additional shifting of state aids to make up some of the budget shortfall. Thus being prudent in preserving your fund balances would serve your Districts well.
Still rough times in 2011-13 and 2013-15:
The longer-term structural deficit for the next couple of bienniums is in the range of $5-8 billion in each biennium. New taxes can address possibly $2 billion of these problems and a recovering economy might solve another $2 billion in each of the bienniums. This still leaves a sizable deficit.
