Dear Members of the San Rafael City Schools Community:
Last Thursday, May 14, 2009, Governor Schwarzenegger released two scenarios as part of the May Revision-one plan based on voter approval of Propositions 1A, 1B, 1C, 1D, and 1E on the May 19 special election ballot, and the other based on rejection of those measures.
The May 14 announcement should be viewed as a preliminary proposal to be further developed later in the month. This announcement also provides updates regarding the grim state economy. According to the Governor, the outlook for the California economy mirrors that of the nation, with negative growth expected to continue in 2009 followed by weak growth in 2010, and with better growth in 2011. The projection is that California's personal income will fall by 1% in 2009, which is the first decline in personal income since 1938. The drop in personal income results from a rising unemployment rate which, as of March 2009, climbed to 11.2%, almost double the rate for the same period last year.
To fill the gaps created by the state's worsening financial picture, the May Revision relies on program savings for 38% of the solution primarily from reductions to Health and Human Services programs and education funding (Proposition 98), 41% from borrowing in the form of Revenue Anticipation Warrants (RAWs), with less than 7% from revenue acceleration and fees. The total two-year reduction under this scenario would be $14.6 billion.
The second scenario outlined by the Governor, if the ballot measures fail, adds an additional $6.8 billion of solutions for a total of $21.3 billion. Under this scenario, nearly 51% of the solution comes from program savings, including an additional cut to education funding, further reductions to health and social service programs, and early release of prisoners. Revenue acceleration and fees would make up 26% of the solution and would include increasing withholding tax by 10% and increasing other fees. Nearly $2 billion would be borrowed from local government, which would reduce the overall solution percentage to 22%.
The Governor also proposes savings in state government, including selling seven state-owned properties, reducing the state workforce by 5,000 employees, and consolidating or merging various departments.
The Governor's May Revision proposes making various cuts to K-14 education. Presuming that all of the proposed initiatives pass, the total proposed cuts amount to an additional $1.0 billion in 2008-09 and $2.2 billion in 2009-10. In the event that the initiatives fail, these cuts grow to $1.6 billion in 2008-09 and $4.8 billion in 2009-10.
The proposed reductions come first in the form of further cuts to revenue limit funding and additional deferrals. Additional information can be reviewed below.
Now is not the time to panic; however, it is time, to add to those back-up
plans already in process. The San Rafael City Schools Board of Education has been consistent in making decisions that provide the Board with the greatest fiscal flexibility possible.
The Board has consistently taken the necessary actions to ensure a
positive certification of the 2009-2010 Elementary budget by the Marin
County Office of Education.
This continues to be the most challenging year in California's history,
getting through it continues to require all of us working together.
We will keep you updated and informed as we have additional information. Either way, we will have to make further reductions to our elementary budget given either scenario.
Thank you for your continued support.
Mike
Michael Watenpaugh, Ed.D.
Superintendent of Schools
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May Revise - Fiscal Impacts
San Rafael Elementary District
The May Revision released last week by the Governor identifies the need to further cut funds from Revenue Limit school districts. This impacts our Elementary District.
The May Revision proposes to cut both current-year (2008-2009) and
budget-year (2009-2010) revenue limits under both scenarios.
We have received preliminary figures that represent a general estimate of
the May Revision proposal.
SCENARIO 1 - All Special Election Budget Measures Pass
Elementary District - Base Revenue Limit Per ADA Reduction
2008-2009 - $114
2009-2010 - $ 41
Under Scenario #1, the Elementary District will lose $1,313,000 of revenue in the current 2008-2009 school year, and an additional $398,500 in 2009-2010, for a total loss of $1,711,500 to the K-8 district in a 2 year period.
SCENARIO 2 - All Special Election Budget Measures Fail
Elementary District Base Revenue Limit Per ADA Reduction
2008-2009 - $215
2009-2010 - $ 18
Under
Scenario #2, the Elementary District will lose $1,682,000 of revenue in
the current 2008-2009 school year, and an additional $314,500 in
2009-2010, for a total loss of $1,996,500to the K-8 district in a 2
year period.
The reductions for 2008-09 would be taken from our current-year revenue
limit in accordance with the adjustments adopted with the 2009-10 Budget Act. We will have to make these adjustments against our current-year revenue limit.
Under either scenario, these are dramatic and further reductions.
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Next Board Meeting
The Board of Education's next regularly scheduled meeting is Tuesday, May 26, 2009, 6:00 p.m.
District Board Room, 310 Nova Albion, San Rafael, 94903.
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BOARD OF EDUCATION
Natu Tuatagaloa, Board President
Linda M. Jackson, Board Vice-President
Paul Cohen, Trustee
Greg Knell, Trustee
Jon Loberg, Trustee
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VOTE!
May 19, 2009
Special Election!
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