State budget update: Fine arts and weather forecasts

Analysis from CSBA’s Governmental Relations Department

After remaining on call for more than a week, the state Legislature’s Budget Conference Committee met again on Tuesday. Little agreement on anything pertaining to education resulted, but the joint Senate-Assembly panel does appear to have resolved one area of concern to CSBA members—discretionary use of funds from the Arts and Music Block Grant that was established in the 2006-07 budget.

Current provisions allow districts to address a broad spectrum of needs with the funds, such as shortfalls at individual schools, restoration of prior-year cuts and focusing resources on certain grade levels. Gov. Arnold Schwarzenegger, however, wanted to require districts to spend an equal amount of funds per student.

Fortunately, the committee reached a compromise that would preserve local prerogative: Districts that choose not to spend the funds based on an equal amount per student could hold public hearings and then adopt a resolution specifying how they would allocate the money.

Keep a weather eye open

Meanwhile, the state’s overall revenue picture continues to change. We reported last week that estimates were down $764 million from earlier projections. Now it appears the shortfall may be a bit less, just $538 million for the year. The ups and downs of the forecasts make it difficult for the Budget Conference Committee to determine how much revenue really will be available and where to make any necessary adjustments.

For schools, the assurance that the cost-of-living adjustment and restoring funding for equalization has not changed. There will likely be fewer funds available for one-time allocations, though, and the fate of programs proposed by the governor in January and May remains precarious.

This uncertainty makes life difficult for school officials who are adopting their budgets for next year. It’s hard to predict when a budget impasse will be broken, but a bit of folk wisdom that’s been kicking around the Capitol for years offers one gauge: not until the thermometer in Sacramento hits 100 for three straight days.