passage_of_amendment_1_will_reduce_severity_of_state_education_
funding_cuts/45254/*** The Governor’s statement on the passage of Amendment 1 is at:http://governorpress.alabama.gov/pr/pr-2008-11-05-01-amend_one.asp State of Alabama to Schools: Checks Not in the Mail, Press Register (Mobile), November 20, 2008: http://www.al.com/news/press-register/metro.ssf?/base/news/1227176208184620.xml&coll=3 Governor Riley Announces Deficit Prevention Plan, Office of the Governor, December 15, 2008: http://governorpress.alabama.gov/pr/pr-2008-12-15-02-deficitpreventionplan2.asp*** The FY 2009 Budget as enacted is at:http://www.lfo.state.al.us/pdfs/FY%202009%20Spreadsheets/05.20.08_FOR%20WEB_GF%20FY%202009%20ENACTED.pdf Proration Hits Education Budget Hard, Montgomery Independent, December 22, 2008: http://www.al.com/news/independent/index.ssf?/base/news/1229958914130360.xml&coll=4Presentation to the Legislature on Alabama’s Financial Condition, Legislative Fiscal Office, January 12, 2009:http://www.lfo.state.al.us/special-reports.htmThe 2009 State of the State Address, Office of the Governor, February 3, 2009:http://www.governorpress.state.al.us/pr/sp-2009-02-03-sos2009.asp*** To read the Governor’s Economic Recovery Plan:http://www.governorpress.state.al.us/PDFs/AL_Economic_Recovery_Plan_Fact_Sheet.pdf*** And the Governor’s Education Agenda:http://www.governorpress.state.al.us/PDFs/Gov_Education_Agenda_Fact_Sheet.pdfStimulus.Alabama.gov is the website on how Alabama will use federal ARRA funds, February 27, 2009:http://www.stimulus.alabama.gov/Alabama’s Unemployment Rate Rises to 8.4%, Department of Industrial Relations, March 27, 2009:http://dir.alabama.gov/docs/pressreleases/uc_february%20rate%20release.pdfLegislative Summary Day 16 of the Regular Session, Birmingham News, April 2, 2009 -- See page 2 for information on federal stimulus funds:http://www.al.com/news/birminghamnews/legislature.ssf?/base/news/1238660189263920.xml&coll=2Alabama School Budget Could Slash 2,000 Support Jobs Next Year, The Birmingham News, April 9, 2009:http://blog.al.com/spotnews/2009/04/alabama_school_budget_could_sl.html*** Comparison spreadsheets on the Governor’s first, second, and third FY 2010 Education Trust Fund budget, from the Legislative Fiscal Office, are available at:http://www.lfo.state.al.us/budget-fiscal.htmGovernor Riley Signs $6.2 Billion Education Budget, Office of the Governor, May 4, 2009:http://governorpress.alabama.gov/pr/pr-2009-05-04-01-education-video.aspGovernor Riley Sends General Fund Budget Back With Changes, Office of the Governor, May 14, 2009:http://governorpress.alabama.gov/pr/pr-2009-05-14-02-generalfundbudgetchanges.aspState’s Tax Take Declines $287.5 Million, Gadsden Times, June 3, 2009:http://www.gadsdentimes.com/article/20090603/NEWS/906039968?Title=State-s-tax-take-declines-287-5-million*** Monthly Revenue Abstracts from the Department of Revenue are available at:http://www.revenue.alabama.gov/stat.htmlAlabama Receives Award for Record of New Jobs, Office of the Governor, June 15, 2009:http://governorpress.alabama.gov/pr/pr-2009-06-15-01-silver.aspAlabama’s Unemployment Rate Rises to 9.8%, Alabama Department of Industrial Relations, June 19, 2009:http://dir.alabama.gov/docs/pressreleases/uc_may%202009%20rate%20release.pdfAlaska: Volatile Oil Prices Lead to Budget ReductionsCompiled from several sources named in the text and in the links below.
***
Office of the Governor, May 23, 2008: Governor Palin signed the FY 2009 Operating Budget, the FY 2009 Mental Health Operating and Capital Budget, and the FY 2009 Capital Budget. The Governor said that “
In this time of unprecedented resource revenue, we have an opportunity to address deferred maintenance, transportation, and infrastructure projects. . . . The Operating Budget Bill totals $11.1 billion and includes funding for education, the university system, public health and safety, transportation and resource development. In signing the bill, the Governor committed to saving at least $20 million in State agencies’ operating budgets . . . Commissioners are developing strategies to achieving this savings target within the budget beginning July 1. Savings achieved during the fiscal year will roll into the Constitutional Budget Reserve fund at the end of FY 2009.”
***
Alaska Department of Revenue-Tax Division, December 9, 2008: “In its letter to the Governor of Alaska, the Commissioner of the Department of Revenue stated that “
Fiscal Year 2009 may be one for the record books when it comes to oil price volatility. Alaska North Slope (ANS) crude oil prices started out the year at close to $133 per barrel, but dropped precipitously down to less than $50 per barrel in November, a 63% decrease in only four months. We forecast ANS prices to level off for the remainder of the fiscal year in the $62 per barrel range, closing out the fiscal year at $77.66 per barrel when all twelve months are averaged. For FY 2010, we project an average price over the entire year of $74.41. Our medium term outlook calls for increased stability in oil prices, with FY 2011 and FY 2012 at $71.65 and $72.57, respectively, and in the mid-$70 range through FY 2015. Our long term ANS crude oil price forecast for FY 2016 and beyond did not change from our Spring 2008 forecast price of $78.51, increasing at the projected rate of inflation. This price forecast assumes that the financial crisis experienced in the U.S. is relatively short-lived, and the economy returns to a more stable state within one to two years.” (NOTE: About 90 percent of Alaska’s income is based on oil.)
***
Office of the Governor, December 15, 2008: “Governor Sarah Palin
released the budget proposal for Fiscal Year 2010 that will result in less government spending than the current year. . . . Based on the fall revenue forecast, the Governor’s proposed spending level in FY 2010 will result in a surplus of $388.7 million. . . . (The budget includes) full funding of K-12 education ($1.05 billion total funds, including $118 million for intensive needs students); school major maintenance (20 projects; $40.5 million); preschool pilot program ($2 million); Head Start program ($2 million); Denali Kid Care ($34.9 million).”
***
Office of the Governor, January 22, 2009: In her State of the State address, the Governor stated that “with less revenue, we have an obligation to spend less money. With our share of federal funds and Congress’ stimulus package, our obligation is equally clear: we must ensure these public funds serve vital needs – as is the case of infrastructure for our gas pipeline, needed by the nation; and the Kodiak Launch Facility, adding to national defense. . . We promised public education reform – so schools can plan ahead, and bureaucracies do not smother a school’s creativity or a student’s aspiration. We now take
the next step in our three-year education plan. . . . We’ll fully forward-fund all our school districts with more than a billion dollars – that’s more than 21 percent of General Fund expenditures. Education is that high a priority. We’ll focus on early learning, vo-tech and workforce development, an enhanced University, streamlined operations -- we’ll hold schools accountable, and we’ll encourage opportunities for students with special needs. . . . I look forward to working with you on adjustments to kid’s health insurance. We’ll fund more early screening – for example, for autism. . . . We’ll focus on preventing disease and promoting healthy living. I’ll ask that physical education be incorporated into daily school schedules, too.”
***
Office of the Governor, January 23, 2009: In a period of uncertainty due to current oil prices, “the Governor announced immediate implementation of a
non-essential purchasing restriction and a hiring freeze to reduce the impact on State general funds. Each Commissioner will determine what items are non-essential but would likely include conference travel, administrative travel, subscriptions, supply or equipment purchases that could be delayed until FY 2010. The hiring freeze applies to all positions, except for those that are necessary to protect the health and safety of Alaskans.” The announcement provides details of positions for which the hiring freeze does and does not apply. (Note: On February 3, the Alaska Department of Revenue’s new forecast stated that “unrestricted revenue for FY 2009 is projected to be $5.5 billion, or $1.2 billion less than projected in the Fall 2008 forecast.”)
***
Office of the Governor, February 3, 2009: “Governor Sarah Palin
submitted a supplemental budget to legislators today that reduces general funds by $268.6 million and seeks authorization to access savings to balance the budget at the end of the fiscal year. . . . The $268.6 million in reductions will bring the estimated revenue shortfall to $1.36 billion. Legislators will have to authorize the use of reserves or make additional reductions to balance the FY2009 budget.” (The proposed supplemental budget for FY 2009 appears to reduce funds for the Department of Education and Early Development by $270,000.)
***
Digital Journal, February 11, 2009: With regard to “a court case filed back in 2004 (Moore vs State of Alaska) . . . Superior Court Judge Sharon Gleason ruled at the end of January 2009 that the
State would have 60 days to improve the conditions for rural students or else the court may very well make the decisions for them. . . . In the lengthy decision, Gleason stated that Alaska as a State continued to deny its students an education under the State's Constitutional right. Expert testimony in the case showed that children (entering elementary school) in some rural areas . . . were up to three years behind those from urban areas like Anchorage. . . . Alaska has two months to get a hold of its failing system through hiring more teachers, revamping its curriculum, providing preschool for at risk rural children or whatever it takes to get the vast majority of students on par with the promises it makes in its guidelines. If they fail to comply, (Judge Gleason) can take specific action and that will be out of the Commissioner of Education's hands. Of course, it all comes down to funding and what the State legislature will approve.”
***
Reuters, February 19, 2009: “Sliding oil prices and production have prompted Alaska officials to
forecast a State budget shortfall of $1.25 billion in the next fiscal year. . . . According to the latest calculations (by Alaska’s Department of Revenue), Alaska will have to pull $1.25 billion from a special reserve fund in the coming fiscal year, which starts July 1.” (Governor Palin’s fiscal 2010 budget was based on a $388.7 million surplus -- See December 15, 2008, above).
***
Office of the Governor, March 19, 2009: “Governor Sarah Palin submitted her federal economic stimulus appropriation bill to legislators today to provide jobs and needed infrastructure improvements in Alaska under the American Recovery & Reinvestment Act (ARRA).
Governor Palin is accepting just 55 percent of the available stimulus funds, all for capital projects. This amount includes the funds the State accepted last month for Department of Transportation projects.”
***
Anchorage Daily News, March 20, 2009: “Alaska superintendents are already
lobbying legislators to reverse Gov. Sarah Palin's decision to reject $172 million (in federal stimulus funds) for Alaska schools. . . . Much of the stimulus package money for education -- about $74 million -- was designated for poor schools and special-needs kids. It was to be spent over the next two academic years. . . . The news (about the Governor’s decision) may have come as more of a surprise because the State Department of Education held a teleconference with superintendents this week about the stimulus funding. Superintendents were given estimates of how much they would be receiving, for at least some portions of the money.”
***
Bloomberg.com, March 26, 2009: “Alaska’s
losses from a stock bet last year widened by 38 percent to $1.5 billion in January and February, a State official said. . . . Palin administration officials said they turned to stocks so the State wouldn’t be so dependent on oil, which fell to a six-year low of $32.40 a barrel on Dec. 19 before rebounding to $54.34 in trading on the New York Mercantile Exchange as of yesterday (March 25).”
***
Alaska Journal of Commerce, April 3, 2009: There's still tension between Gov. Sarah Palin and State legislators over accepting all of the $930.5 million of federal stimulus money available to the State of Alaska. Palin said she won't accept $214.2 million because of federal strings, or continuing obligations, attached to the funds. . . . To keep options open in getting all of the money, the
House and Senate have passed resolutions accepting all stimulus money available. . . . Palin has the last say on this, however. The governor has not just one but two final shots, said Senate President Gary Stevens, R-Kodiak. First, the governor can veto funds that legislators accept and insert into appropriation bills. Second, even if lawmakers override Palin's vetoes and the money is appropriated, State agencies must formally apply for the funds, and this is a step that Palin will control, Stevens said.”
***
Anchorage Daily News, April 20, 2009: Before adjourning on April 19, “the
Legislature passed a $9.7 billion operating budget, compared to $11.2 billion approved by in 2008. Legislators approved a $1.8 billion capital budget. . . . That compares to $2.9 billion last year, though the governor vetoed $268 million of that. . . . Palin said she was reluctant to take about $288 million of the stimulus money, including money for schools, energy assistance and social services, because she worried it would grow government and increase the national debt. She didn't want Alaska to be on the hook for continuing the spending when the stimulus money disappears. And she said the feds attached too many strings to getting it. In the face of the governor's reluctance, the Legislature did a thorough job of vetting the federal stimulus program and found that there are not, actually, onerous strings attached to accepting it. They voted to take all the stimulus money available.” (NOTE: This article provides a list of provisions that passed and didn’t pass.)
***
Office of the Governor, April 28, 2009: “The Palin administration today
acknowledged the State legislature’s action to accept economic stimulus funds. . . . The legislature agreed with the Governor that these federal funds should be used to generate new private sector jobs and not be used to create new services or programs. HB199 includes intent language to that effect: The State will not be granting additional funds to continue the programs after the federal aid is exhausted. . . . Education funding is one of the largest components of the economic stimulus package, and legislators appear to have assured themselves that Alaska schools will use the one-time funds wisely. Alaska’s 53 school districts can access about $171 million in stimulus funds, as HB199 states.”
***
Office of the Governor, May 21, 2009: “Governor Sarah Palin today signed into law six appropriations bills, including House Bill 81, the FY2010 Operating Budget; House Bill 83, the FY2010 Mental Health Operating and Capital Budget; House Bill 113, the FY2009 Supplemental Bill; House Bill 199, the Federal Economic Stimulus Bill; Senate Bill 75, the FY2010 capital budget; and Senate Bill 116, a one-time special appropriation for low-income energy assistance. The governor struck a total of $80.3 million through various line-item reductions in four of the six appropriations bills. HB 83, the mental health operating and capital budget, and SB 116, the energy assistance special appropriation, were signed into law as passed by the legislature.”
***
Governor’s Chief of Staff, May 21, 2009: This memorandum to Commissioners and Administrative Service Directors refers to the hiring freeze implemented in January 2009 and states that “effective June 1, 2009, the hiring freeze is rescinded. . . . I do not anticipate extending savings targets into the FY2010 budget. However, I expect departments to look carefully at their vacant positions and utilize them fully in the FY2010 management plan budget reconciliation. Approval of new positions will be very limited.” (NOTE: The earlier hiring freeze is reported in the January 23 annotation above.)
***
Office of the Governor, May 31, 2009: “Governor Sarah Palin announced that the State of Alaska has chosen to monitor but not yet actively participate in the upcoming initiative to create nationwide common core State standards in reading and math. The National Governors Association and the Council of Chief State School Officers have announced they intend to work with States to formulate standards in English and math for kindergarten through grade 12 by December 2009.” (NOTE: On June 1, the Council of Chief State School Officers reported that 49 States and Territories had joined the Common Core State Standards Initiative.)
_________________________________
Governor Palin Signs FY 2009 Budgets, Office of the Governor, May 23, 2008:http://www.gov.state.ak.us/omb/09_omb/budget/bills/Budget_Press_Release_5-23-08.pdf*** FY 2009 budget information is at:http://www.gov.state.ak.us/omb/09_omb/budget/index.htmLetter to the Governor, Revenue Sources Book, Alaska Department of Revenue-Tax Division, December 9, 2008:http://www.tax.alaska.gov/programs/documentviewer/viewer.aspx?1530fOffice of the Governor, Governor Palin Releases Fiscal Year 2010 Budgets, Spending Less Than Current Year, December 15, 2008:http://www.gov.state.ak.us/news.php?id=1585*** Budget details, FY 2010 -- Alaska Office of Management and Budget:http://omb.alaska.gov/10_omb/budget/index_FY10_Operating.htmGovernor Palin’s 2009 State of the State, Office of the Governor, January 22, 2009:http://www.gov.state.ak.us/news.php?id=1610Memo to Commissioners and Administrative Service Directors on Purchasing Restrictions and Hiring Freeze, Office of the Governor, January 23, 2009:http://gov.state.ak.us/omb/10_omb/budget/Hiring%20Freeze%20Memo%20from%20COS%201-23-09.pdfGovernor Reduces Current Year Spending, Office of the Governor, February 3, 2009:http://www.gov.state.ak.us/news.php?id=1621*** To see details on the proposed FY 2009 supplemental budget:http://omb.alaska.gov/10_omb/budget/10%20PDFs/Supplemental%20Budget%202-3-09%20Senate.pdf*** To read the Department of Revenue’s February 3 FY 2009 forecast:http://gov.state.ak.us/omb/10_omb/budget/10%20PDFs/Press_Release_DOR_Forecast_Update_2-3-09.pdfAlaska’s Education System Under Fire, Rural Students Lagging, Digital Journal, February 11, 2009 (summary from Anchorage Daily News):
http://www.digitaljournal.com/article/267015*** Anchorage Daily News article:http://www.adn.com/news/alaska/story/681988.htmlAlaska Sees $1.25 Billion Budget Gap on Oil Price Drop, Reuters, February 19, 2009:http://www.reuters.com/article/domesticNews/idUSTRE51J02J20090220Governor Palin Accepts Half of Stimulus Package Funds; Alaska Vows To Be Part of the Solution, Not the Problem, Office of the Governor, March 19, 2009:http://www.gov.state.ak.us/news.php?id=1717Alaska’s website on federal economic stimulus information is at:http://gov.state.ak.us/omb/10_omb/budget/IndexEconomicStimulus.htmSchool Officials Turn to Legislature to Save Stimulus Funds, Anchorage Daily News, March 20, 2009:http://www.adn.com/news/education/story/729506.htmlAlaska Stock Loss Grows to $1.5 Billion as Palin Seeks Oil Cash, Bloomberg,com, March 26, 2009:http://www.bloomberg.com/apps/news?pid=20601103&sid=a6Qp3fmewE2c&refer=usTensions Persist in Juneau Over Federal Stimulus Money, Alaska Journal of Commerce, April 3, 2009:http://www.alaskajournal.com/stories/040309/leg_img_legis001.shtmlOur View: 2009 Session, Anchorage Daily News, April 20, 2000 -- Includes a list of major budget provisions that passed and didn’t pass:http://www.adn.com/opinion/view/story/766452.htmlGovernor Acknowledges Action on Stimulus, Office of the Governor, April 28, 2009:http://www.gov.state.ak.us/archive.php?id=1792&type=1Governor Palin Signs Budget Bills, Office of the Governor, May 21, 2009:http://www.gov.state.ak.us/archive.php?id=1858&type=1*** Details about the 2010 enacted budget are available at:http://omb.alaska.gov/10_omb/budget/index_FY10_enacted.htmMemorandum to Commissioners and Administrative Services Directors (on rescinding the hiring freeze), Governor’s Chief of Staff, May 21, 2009:http://omb.alaska.gov/10_omb/budget/Hiring%20Freeze%20Rescind%20Memo%20COS%205-21-09.pdfAlaska to Monitor Education Initiative: Reading and Math Nationwide Standards, Office of the Governor, May 31, 2009:http://www.gov.state.ak.us/news.php?id=1872*** See information on the Common Core State Standards Initiative from the Council of Chief State School Officers, June 1, 2009:http://www.ccsso.org/whats_new/press_releases/13359.cfmArizona: Revenues Plummet Compiled from several sources named in the text and in the links below.
*** NOTE: Although the link to this document is no longer available, on October 1, 2008, Governor Janet Napolitano released detailed plans for handling any projected shortfall in the current budget for FY 2009 because economists’ best
predictions show a range for Arizona’s shortfall for the full fiscal year. . . . The Governor stated that her goal is to protect classroom spending for K-12 education, and to ensure that we continue to provide service to vulnerable Arizonans, including children, veterans and seniors, without increasing taxes. Subsequently in November,
Forbes reported that Arizona now projected a $1.2 billion shortfall for FY 2009 and a larger shortfall for FY 2010.
***
Office of the State Treasurer, January 5, 2009: “State Treasurer Dean Martin announced today the State
may have to borrow $2.5 billion to as much as $5.7 billion in the next 100 days to meet State spending obligations. The State is spending faster than revenues are coming in, and is on a present course of running out of cash to pay bills in the next 60 to 90 days. During the first half of FY2009, which ended in December, the State was spending over $28 million per day. During the first five months of the fiscal year (July-November), the State collected an average of only $22.4 million per day. . . . In February 2008, the State operating balance was over $1.6 billion; a year later, that balance could be below zero. . . . (Treasurer Martin explained that) ‘according to Attorney General Terry Goddard, before the balance falls below zero, we are required by law to liquidate any remaining rainy day funds, and call in all loans to ADOT (AZ Dept. of Transportation) for transportation projects,’ said Treasurer Dean Martin. ‘But that will not be enough. At the current rate of spending, we will need $2.5 billion to $5.7 billion in loans just to continue to make payroll. . . . In anticipation of this situation, we have been negotiating with our servicing bank to establish a line of credit to meet the State’s needs. . . . Unfortunately next fiscal year will be even worse. The last two years of budget spending in excess of revenues have depleted the State’s reserves. Within the first two weeks of the next fiscal year, the State will be in the red, and stay there for most of the year. Next year’s problem makes this year’s look like a drop in the bucket.”
***
Office of the Governor, January 16, 2009: “Governor Janet Napolitano has
released a balanced budget plan for fiscal years 2009 and 2010 which protects important investments in education, public safety, and the social safety net, and does not raise taxes. . . . ‘Every area of State government experiences some kind of cut. In this budget, everyone makes sacrifices,’ Governor Napolitano said. ‘But these are cuts that make sense and that preserve important initiatives -- especially in education -- that are building Arizona’s future.’ The budget plan closes shortfalls of $1.2 billion in the current fiscal year (FY 2009) and nearly $2.7 billion in FY 2010. . . . The Rainy Day Fund will use $120 million of its $130 million balance. . . . (The FY 2008 and current FY 2009 budgets contained $1.8 billion in cuts.)”
NOTE: Subsequently Janet Napolitano became Secretary of the U.S. Department of Homeland Security in the Obama Administration, and former Secretary of State Jan Brewer became Governor of Arizona.
***
AZcentral.com, Phoenix, January 27, 2009: “University presidents and the Arizona Board of Regents believe the
State's higher education system can shoulder a $100 million budget cut. Education officials, including the presidents of the three State universities, arrived at the figure in response to House Speaker Kirk Adams' call for them to develop their own set of options for budget cuts. . . . UA Executive Vice President and Provost Meredith Hay said the university system proposal also petitioned Adams to let regents decide how to divide the $100 million cut among the three universities.”
***
Office of the Governor, January 28, 2009: “Governor Brewer signed a proclamation calling a
special session of the 49th Legislature for January 28. “The subject of the special session shall be the adjustments necessary to address the projected State budget deficit for fiscal year 2008-2009.”
***
Arizona Republic, January 31, 2009: “Gov. Jan Brewer signed a package of bills late Saturday morning (January 31) that
cuts the State budget $1.6 billion (for fiscal 2009).
The bills erase the deficit through nearly $300 million in cuts to education, reductions in most State agencies and anticipated $500 million boost from the still-evolving federal stimulus package. . . . EDUCATION took the bulk of the nearly $582 million in cuts, and sparked the most passionate debate during the three days of the special session. The K-12 schools must cut their budgets a collective $113 million, which averages about 1.6 percent to individual school districts through June. Charter schools were cut $4 million, and the State Department of Education was cut $8 million. . . . The budget-cut plan was designed to give school districts, as well as State agencies, as much flexibility as possible in choosing where to cut. . . . The universities had said they could bear up to $100 million in cuts, on top of an already-enacted $50 million cut in their budget; the Legislature cut their collective budgets $141 million. . . . Brewer, who had given scant specifics on how to resolve the budget deficit, weighed in late in the process with a list of health and welfare issues that she wanted spared. Her wish was granted: $8.8 million for behavioral health services, $2 million for services to the elderly, and $1 million for homeless programs, among others. In all, they totaled $18 million. . . . (The plan relies) on $500 million in federal stimulus payments.” (Note: Next the Legislature will work on a $3 billion deficit in the fiscal 2101 budget.)
***
Tucson Citizen, February 3, 2009: “The
Arizona Supreme Court put red ink back into the State budget on Tuesday (February 3) by overturning a provision requiring local governments to pay nearly $30 million to help balance the current State budget. The ruling on the provision, enacted last year, came on a special action lawsuit file directly with the State high court by the League of Arizona Cities and Towns. The ruling has the effect of worsening the State’s budget trouble for the current fiscal year but relieving some pressure on local governments.”
***
Superintendent of the Arizona Department of Education, February 12, 2009: In his fifth
State of Education Speech before the Arizona House and Senate Education Committee, Superintendent Tom Horne emphasized the three R’s of rigor, relevance, and relationships (formulated by Bill Daggett) as the Department’s theme for 2010. He also said that “we now require that English Language Learners have at least 4-1/2 hours a day of intensive English language instruction. . . .Three districts, Florence, Glendale Elementary, and Humboldt, that partially adopted the new models a year early, more than doubled their rate of reclassifying students (as English proficient). In the next two years, you will see a dramatic increase in the percentage of students becoming proficient in English quickly and therefore having the capacity to excel academically. Last year, you appropriated $40 million for the extra cost of these new models. This year we have worked hard with the districts to find more efficient ways to implement new models, and for
next year are reducing that cost from $40 million to $8,800,000, a savings to the taxpayer of $31 million.”
***
The Arizona Republic, February 13, 2009: “Be prepared to cut another $250 million to $425 million from this year's budget, lawmakers were told Thursday. It's another in a series of ominous warnings that has been trickling out since lawmakers closed a $1.6 billion gap in the fiscal 2009 State budget less than two weeks ago. Thursday's notice from the Joint Legislative Budget Committee was based on State
tax collections for January, which are down an estimated 21.5 percent over January 2008.”
***
Daily Wildcat, Arizona State University, February 16, 2009: “Arizona legislators have just
finished adjusting the 2009 fiscal year budget to cover the State's $1.6 billion shortfall, and the 2010 fiscal year budget is even worse, House members said. . . . The State’s tax collections are continuing to fall and the projected deficit for 2010 is an estimated $3 billion, which is nearly one-third of the State's general fund. . . . The House Education Committee held an unusual meeting to hear from various members of the education system in southern Arizona” (on February 13).
***
Arizona Daily Star, Tucson, March 1, 2009: “Arizona is facing monstrously large budget shortfalls, and lawmakers plugged a $1.6 billion hole through June 30. Both the Department of Economic Security and the Department of Health Services took major hits in that budget revision and those least able to protest are feeling the results. . . . Consider the cost of gutting
Child Protective Services. The agency is up front about what the cuts mean to the children of Arizona: Some reports of suspected abuse or neglect won't be investigated, or the response will be delayed due to staffing shortages. . . . The flip side, however, is that because so many support services — counseling, parent training, substance abuse — have been slashed by the budget cuts, more children could end up being removed from their homes when, under better circumstances, they could remain with their families and receive help.”
***
Office of the Governor, March 4, 2009: “Arizona Governor Jan Brewer today addressed a rare joint session of the 49th Arizona State Legislature, at which time she
laid out a comprehensive 5-point long-term solution to the State’s current financial condition. . . . (The Governor said that) ‘the truth is, we cannot afford the size of government we now have and even a slowly recovering economy will not fix the problem.’ . . . .The Governor’s 5-point long-term recovery plan calls for: (a) structural budget reform; . . . (b) improve Proposition 105 -- the Voter Protection Act; . . . (c) an additional spending cut -- an accumulated $1 billion reduction in the General Fund; . . . The Governor has directed her Cabinet and their budget staffs to evaluate the impacts of possible additional spending cuts in 5% increments up to 20%, with the goal of reducing General Fund obligations by $1 billion by 2010. (d) reform and modernization of Arizona’s State tax structure; . . . and (e) a temporary tax increase -- increase State revenues by $1 billion per year. . . . The Governor also spoke of the necessity that the House and Senate send to her legislation by March 14 authorizing approximately $20 million in federal child care dollars.”
***
Arizona Republic (via AZcentral), March 12, 2009: Maricopa County Superior Court judge on Wednesday
indefinitely suspended cuts to State programs that serve the developmentally disabled, serving up a temporary victory to advocates for the disabled. The ruling suspends at least $18 million in cuts that the State Department of Economic Security (DES) ordered to help the State resolve a $1.6 billion deficit. . . . Judge Joseph Heilman (said) it was necessary to prevent ‘immediate and irreparable harm’ as he granted the request from the Arizona Association of Providers for Persons with Disabilities for a temporary restraining order. Heilman also ordered the dollars restored, retroactive to March 1. . . . The groups that brought the suit hope to sit down with the DES and discuss how to cut the budget without leaving disabled individuals without services.”
***
Office of the Governor, March 12, 2009: A statement by Governor Jan Brewer said that “I greatly appreciate today’s prompt attention and action of the leadership and members of the Arizona House and Arizona Senate to approve an
important Arizona childcare program for the working poor. As a result of my signature on the legislation tonight, the program will continue with federal stimulus dollars, and working parents will be able to keep their jobs and their childcare without interruption.” (This restores a $24 million reduction in childcare subsidies.)
***
Office of the State Treasurer, March 18, 2009: In his update on the State’s cash flow crisis, State Treasurer Dean Martin stated that “due to the continued deterioration of the economy, revenues have continued to fall at a faster rate than spending has slowed. By end of business Tuesday (March 17),
the State Operating Balance was only $145 million, a historic low of only 1% of the General Fund budget.’ . . . Treasurer Martin authorized the final remaining rainy day funds to be transferred into the general fund to cover over $100 million of today's expenses. Treasurer Martin will outline the ‘fiscal emergency plan’ to provide sufficient cash for the State to cover day-to-day obligations, including payroll, tax refund checks, payments to universities, and K-12 schools. . . . The economy and budget crisis have worsened since my forecast in January. Without $218 million of onetime transfers from the FY09 budget fix, and an emergency distribution of $307 million of Federal Stimulus funds, the State would have been out of cash last Friday. Even with this injection of over half a billion in new money, there are not enough cash reserves to meet spending obligations in April.”
***
Arizona Daily Star,Tucson, March 27, 2009: “State lawmakers
will have to restore at least $150 million in cuts they just made to higher education to keep Arizona from losing more than $800 million in federal education stimulus funds. Draft rules by the U.S. Department of Education require states to use their allocations to help restore public support to the higher figure of what was being spent either this budget year or the previous one. . . . Lawmakers cut nearly $142 million from the university system in January to deal with a $1.6 billion deficit this fiscal year. That came on top of $50 million in cuts already imposed at the beginning of this budget year. . . . Despite the $1.6 billion fix, Republican legislative leaders say the State still is $250 million to $450 million in the financial hole for the current budget year. . . . Figures for the first seven months of the fiscal year show revenues at close to $4.8 billion. That's already $82 million less than anticipated when legislators adopted the revised budget in January. At the same time, GOP leaders are trying to craft a budget for the coming year, one that already has a $3 billion gap between anticipated revenues and expenses.”
***
Joint Legislative Budget Committee (JLBC), March 31, 2009: “In its Monthly Fiscal Highlights, the JBLC stated, among many other things, that “the Legislature enacted a revised FY 2009 budget during the first Special session in the last week of January. These revisions resolved a projected $1.6 billion budget shortfall. . . . The FAC met on March 31 and a new 4-sector forecast was released.
The forecast now projects a 13.0% decline in FY 2009. Given that year-to-date revenues have already declined (13.5%) and the approximately 20% loss in January and February, the 4-sector forecast may be too optimistic. As a result, the JLBC staff has recommended that the budget forecast be based on a 14.5% decline in FY 2009 revenues.. . . The January 4-sector consensus assumed FY 2010 base revenues of $8.29 billion, a 2.8% reduction from FY 2009, excluding fund transfers and Urban Revenue Sharing. The new March estimates have increased slightly, with the new consensus being a 2.1% revenue decline in FY 2010. With the lower FY 2009 base, however, FY 2010 base revenues are now forecasted to be $7.88 billion.”
***
Arizona Republic, April 16, 2009: “Advocates for children with disabilities on Wednesday (April 15) filed a
federal class-action lawsuit against the State Department of Economic Security (DES). . . . The Arizona Center for Disability Law claims DES officials acted improperly in eliminating funding for the Arizona Early Intervention Program (AZEIP). . . . (which) lost $1.46 million in State funding as part of $43 million in cuts implemented by DES in February, following a $1.6 billion budget fix by the Legislature. . . . The suit requests that the court order DES to continue providing services under AZEIP and compensate families for any services they have not received since the budget cuts. . . . To date, at least nine lawsuits have been filed challenging the legality of various budget reductions made earlier this year.”
***
Arizona Republic, April 21, 2009: “An estimated 5,500 employees at 120 school districts in the State were recently handed
pink slips warning them they may not have jobs next school year, an Arizona Republic survey has found. About 4,000 of those employees are teachers. Most school districts have issued layoff notices because they still do not have a State budget for the fiscal year that begins July 1. They also had to comply with a State law requiring them to tell teachers by April 15 whether their jobs might be cut.”
***
Joint Legislative Budget Committee (JLBC), April 30, 2009: This report of monthly fiscal highlights states that “with the recent March adjustments to the January Special Session, the State had a projected FY 2009 ending balance of $50 million, With a March forecast of 14.5% revenue loss, the year-end revenue shortfall would be $487 million. After adjusting for the $50 million ending balance, the net shortfall would be $437 million. . . . If the preliminary April year-to-date loss of $550 million holds true, the projected year-end forecast loss will need to be revised substantially upward, potentially in the range of $200 to $300 million. The JCLB staff is in the process of further refining this estimate. The release of
new economic data suggests that the State’s already weakened economy is further deteriorating. The decrease in March sales tax collection of 19.3% is the largest decrease relative to last year so far for this fiscal year. The Arizona Department of Commerce’s March employment report indicates that the State has lost 183,100 jobs or 6.9% of its workforce in the last 12 months. . . . The State’s unemployment rate of 7.8 percent in March is the highest since August 1982 and is expected to increase for some time. . . . Since the start of the national recession in December 2007, Arizona’s economy has lost 230,400 jobs.”
***
Public News Service, Boulder CO, May 8, 2009: In Arizona, “a new group wants to restore State funding for human and social services using a combination of stimulus money, accounting changes, and tax increases. More than two dozen Arizona
organizations have formed the Arizona Budget Coalition, which staged a State Capitol news conference Thursday (May 7) to promote budget alternatives they say can avoid further cuts to human and social services. . . .. The coalition says cutting more money from education will only delay economic recovery because Arizona public schools employ more people than the State’s top three private employers combined.”
***
Arizona Republic, May 14, 2009: On May 13, “State
lawmakers approved a budget fix for fiscal 2009 that relies on accounting maneuvers and federal assistance. The two-bill package comes before a $330 million State payment to K-12 schools due Friday. If the package is signed into law today by Gov. Jan Brewer which is expected, that payment would be delayed until the next fiscal year. . . . The budget deal reached by Brewer and legislative leaders closes a $650 million State shortfall by taking $400 million from K-12 schools and public universities and using $250 million in stimulus funding offered by Congress and President Barack Obama.” (NOTE: The Governor subsequently signed the FY 2009 budget legislation.)
***
Office of the Governor, May 22, 2009: “Governor Brewer today submitted the State of Arizona’s application for the State Fiscal Stabilization Fund (SFSF) through the American Recovery and Reinvestment Act. . . . Of the $1.017 billion Arizona qualifies for from the SFSF, 82% ($832 million) is dedicated to the Education Stabilization Fund. . . . (The Governor said that)
the impacts of the federal stimulus funds on the State budget are substantial, but clearly are not large enough to overcome the more than $3 billion State budget deficit. With the Governor’s insistence that SFSF dollars be utilized sparingly to close the FY 2009 budget shortfall ($250 million for K-12; $183 million for higher education), nearly $400 million remains available in FY 2010 to restore K-12 and higher education funding reductions.”
***
Joint Legislative Budget Committee (JLBC), May 29, 2009: “April General Fund revenue collections were $621.3 million. This amount included $59.2 million in budgeted fund transfers from the January Special Session. Excluding these transfers and Urban Revenue Sharing, April collections were 47.9% below the prior year and $505.9 million below the January revised budget forecast. . . . While sales and withholding collections are both down significantly relative to the January forecast, the largest components of the April revenue shortfall are sharply reduced individual income tax payments and increased refunds. . .
Arizona’s tax performance is among the worst in the country.. . . .At the April Finance Advisory Committee meeting . . . (JLBC staff) noted that the projected year-end forecast loss of $487 million will need to be revised substantially upward, potentially in the range of $200-$300 million. Since that time, an additional $650 million of budget shortfalls have been enacted in Chapter 5. . . . Despite these additional solutions, the State may still have a $200 million shortfall by the end of BY 2009. “
***
Office of the Governor, June 1, 2009: “Governor Jan Brewer today
released details of her FY 2010 budget proposal. . . .Citing current assessments that show the State’s FY 2010 General Fund budget deficit to be growing and reaching upwards of $4 billion, coupled with the June 30th constitutionally mandated deadline for a balanced budget, Governor Brewer today renewed her call for a truly balanced budget. . . . . The Governor’s 5-point long-term recovery plan calls for (a) STRUCTURAL BUDGET REFORM.-- Changes to the Budget Stabilization Fund (or ‘Rainy Day’ fund); extending revenue forecasts beyond the current budget cycle; increasing fiscal year ending cash balances; and reducing the rate of spending growth; (b) IMJPROVE PROPOSITION 105 (Voter Protection Act) -- Proposes that the Legislature send the voters in November 2010 election a referendum to require that any initiative or referendum measure that passed between 1998 and 2004 and that enacted a mandatory expenditure of State revenues for any purpose, established a fund for any specific purpose, or allocated funding for any specific purpose, would be subject to a vote of the people to ensure that the measure provided for an increased source of revenues. . . . (c) SPENDING CUTS -- Cut FY 2010 State spending by an additional $600 million (approximately $1 billion in total State spending reductions -- $400 million for FY 2009 and $600 million for FY 2010) while protecting critical funding to education, health care, and public safety. (d) TEMPORARY TAX INCREASE -- A temporary tax increase of 1 percent for 36 months in the State’s transaction privilege tax (sales tax). . . . (e) TAX REDUCTIONS FOR ECONOMIC GROWTH -- Calls for a State tax structure that promotes job growth and sustainability, capital formation, investment in Arizona, and revenue stability. The first step in proving tax relief to Arizona homeowners and businesses is the phased repeal of the State equalization tax, with permanent repeal occurring proportionately over a three-year period beginning in FY 2010.”
***
Arizona Republic, June 5, 2009: “The Republican-controlled Legislature
approved a State budget Thursday -- only to hold off on sending the bills to Gov. Jan Brewer, who was expected to veto them. Instead, House Speaker Kirk Adams and Senate President Bob Burns said they hope to use their $8.2 billion plan as leverage in renewed budget talks with the governor. . . . Legislative leaders hope their budget plan will show it's possible to balance the budget without higher taxes.”
***
Arizona Daily Star, Tucson, June 17, 2009: “
In a lawsuit that will be heard next week, Governor Brewer accuses GOP legislative leaders of conspiring to force her to decide between accepting a budget she doesn't like or risk shutting down state government on July 1. The Republican governor argues in her court filing that legislators have violated the Arizona Constitution by waiting to send her an already approved budget she is likely to veto — using it as a negotiating mechanism to get their proposal signed into law. . . . Originally the main budget hang-up for Republicans appeared to be over Brewer's proposed temporary tax increase. But Brewer said she has compromised on that. . . . Brewer indicated the real fault line between herself and legislative leaders is over cuts in K-12 education, public health and welfare services.”
_________________________________
Arizona Faces Severe Budget & Cash Flow Crisis, Office of the State Treasurer, January 5, 2009:http://www.aztreasury.gov/press/NewsAdvisory-01-05-2009-updated.html Governor Releases Balanced Budget Proposal, Office of the Governor, January 16, 2009: http://azgovernor.gov/dms/upload/NR_011609_Budget%20news%20release.pdf *** To access 2008-2009 proposed Executive Budget materials, January 16, 2009:
http://www.ospb.state.az.us/budgeting.aspArizona Universities Offer $100M Budget Cut, AZcentral.com, Phoenix, January 27, 2009:http://www.azcentral.com/news/articles/2009/01/27/20090127ed-funding0127-ON.htmlProclamation by the Governor of the State of Arizona Calling a Special Session of the 49th Legislature, Office of the Governor, January 28, 2009:http://azgovernor.gov/dms/upload/PROC_012909_SDOC4424.pdfGovernor Signs Budget Deficit Fix After Lawmakers’ OK, Arizona Republic (via AZcentral), January 31, 2009:http://www.azcentral.com/news/articles/2009/01/31/20090131azbudget-ON.html*** To review the FY 2009 Budget Revisions Plan as enacted:http://www.azleg.gov/jlbc/FY09enactedbudget.pdfArizona Court Overturns Local Government Budget Payment, Tucson Citizen, February 3, 2009:http://www.tucsoncitizen.com/daily/local/109246.phpFifth Annual State of Education Speech, 2009, Superintendent of the Arizona Department of Education, February 12, 2009:http://www.ade.state.az.us/administration/superintendent/articles.aspLawmakers Told More Cuts for 2009 Budget Are Possible, The Arizona Republic, February 13, 2009:http://www.azcentral.com/arizonarepublic/local/articles/2009/02/13/20090213statebudget0213.htmlEducation Faces Losses, Daily Wildcat, Arizona State University, February 16, 2009:http://media.wildcat.arizona.edu/media/storage/paper997/news/2009/02/16/News/Education.Faces.Losses-3631561.shtmlState Budget Cuts Threaten Most Vulnerable, Arizona Daily Star, Tucson, March 1, 2009:http://www.azstarnet.com/allheadlines/282124Governor Jan Brewer Lays Out Path to Prosperity -- Building a Better Arizona, Office of the Governor, March 4, 2009:http://azgovernor.gov/dms/upload/NR_030409_Address49thLegislature.pdfDisabled Get Budget Reprieve from Judge, Arizona Republic (via AZcentral, March 12, 2009).http://www.azcentral.com/arizonarepublic/local/articles/2009/03/12/20090312politics-ddd0312.htmlStatement by Governor Jan Brewer (on childcare legislation), Office of the Governor, March 12, 2009:http://azgovernor.gov/dms/upload/NR_031209_StatementChildcare.pdfArizona’s website on federal stimulus funding, announced by the Governor on March 18, is at:
http://az.gov/recovery/State Cash Flow Update -- General Fund Balance Hits Historic Low, Office of the Arizona State Treasurer, March 18, 2009 -- Please note that the date of this release is erroneously shown as March 18, 2008 -- but the date is clearly 2009, as shown as the URL and in the internal information:
http://www.aztreasury.gov/press/NewsAdvisory-03-18-2009.htmlStimulus Money Hangs in Balance, Arizona Daily Star, Tucson, March 27, 2009:http://www.azstarnet.com/metro/286208JLBC Monthly Fiscal Highlights -- Summary, Joint Legislative Budget Committee, March 31, 2009http://www.azleg.gov/jlbc/monthlyhighlights.htmDES Sued Again Over Recent Budget Cuts, Arizona Republic, April 16, 2009:http://www.azcentral.com/news/articles/2009/04/16/20090416dessuit0416-ON.htmlSchool Districts Hand Out 5,500 Layoff Notices, Arizona Republic, April 21, 2009:http://www.azcentral.com/arizonarepublic/local/articles/2009/04/21/20090421teacherlayoffs0421.htmlJLBC Monthly Fiscal Highlights, April 2009, Joint Legislative Budget Committee (JLBC), April 30, 2009:
http://www.azleg.gov/jlbc/monthlyhighlights.htmNew Group Proposes Budget Alternatives to Human Service Cuts, Public News Service, Boulder CO, May 8, 2009:
http://www.publicnewsservice.org/index.php?/content/article/8854-1Legislators Approve State Budget Fix, Arizona Republic, May 14, 2009:
http://www.azcentral.com/news/election/azelections/articles/2009/05/14/20090514statebudget-fix0514.htmlGovernor Brewer Applies for State Fiscal Stabilization Funds, Office of the Governor, May 22, 2009:http://azgovernor.gov/dms/upload/NR_052209_PR-FedStimulusEduApp.pdf
%20Budget.pdfJCLB Monthly Fiscal Highlights for May 2009, Joint Legislative Budget Committee (JLBC), May 29, 2009:http://www.azleg.gov/jlbc/mfh-may-09.pdfGovernor Jan Brewer Releases FY 2010 Balanced Budget Proposal, Office of the Governor, June 1, 2009:http://azgovernor.gov/dms/upload/NR_060109_Governor%20Brewers%20FY10%20Budget.pdf*** Complete details on the Governor’s budget proposals are available at:http://azgovernor.gov/Budget2010.aspLegislature OKs Budget but Will Talk With Brewer, Arizona Republic, June 5, 2009:http://www.azcentral.com/arizonarepublic/news/articles/2009/06/05/20090605budget0605.htmlBrewer Takes Budget Fight to Arizona’s High Court, Arizona Daily Star, Tucson, June 17, 2009:http://www.azstarnet.com/metro/297344*** The Governor’s Petition for Special Action submitted to the Arizona Supreme Court on June 16 is at:http://azgovernor.gov/dms/upload/NR_061609_BrewerVBurnsPetitionSpecialAction.pdfArkansas: Okay in 2008 but Revenue Downturns ContinueCompiled from various sources named in the text and in the links below.
***
Arkansas Department of Finance and Administration, November 13, 2008: The Department’s forecast stated that “
for FY 2009, net available revenues are expected to reach $4,411.0 million, a decrease of $118.2 million or -2.6 percent from FY 2008 net available. . . . For FY 2010, net available revenues are expected to reach $4,500.3 million, an increase of $89.3 million or 2.0 percent above FY 2009. For FY 2011, net available revenues are expected to reach $4,687.7 million, an increase of $178.4 million or 4.0 percent above FY 2010. . . . The Arkansas economy has outperformed the hardest hit States at the heart of the housing and vehicle manufacturing cycles in CY 2008, while matching national growth averages for payroll employment growth.”
***
Office of the Governor, November 2008: The Governor
commented on the balanced budget proposal for FY 2009-2011 that he submitted to the General Assembly for budget hearings in preparation for the upcoming legislative session. “This budget provides full funding for public education, above and beyond court-mandated adequacy levels. . . . Providing meaningful tax relief to working families is another essential feature of this budget proposal. . . . I’ve recommended that a ‘rainy day fund’ be created with surplus funds, so that I can work with the Legislature to target critical needs that may arise during this time of fiscal uncertainty -- especially in areas such as Medicaid assistance and other essential services.” The budget proposal shows $4,411,009,646 in fiscal 2009; $4,470,200,000 for fiscal 2010; and $4,649,200,000 for fiscal 2011.
***
Office of the Governor, January 13, 2009: In his State of the State address, Governor Beebe said that ‘despite our nation's struggle with an economic slide unmatched since the Great Depression, Arkansas continues to make advancements in education and attract new businesses. Still, the impact of the global recession has reached within our borders, and it's not yet over. . . . There are only two areas in my balanced budget where I have proposed real increases in funding. Those are for public education and for the Division of Children and Family Services. . . .
If approved annually by the Legislature, we will add 234 dollars of additional per-student funding over the next two years, and will give school districts additional one-time enhancement money of 35 dollars per student. . . . Providing excellence in grades K through 12 is only one piece of our education commitment. We have made quality pre-kindergarten education available to all at-risk children. . . . In 2007, we initiated a need-based financial-aid program in Arkansas, the GO Opportunities Grant, to make college more attainable for students who show potential for success in professional and technical careers, even though they may have been late bloomers academically. It's a good start, but this program must be broadened to include more non-traditional students, to help additional students in two-year programs, and to expand the total financial support available. (The Governor also proposed increasing scholarship amounts for both need-based and merit-based aid.) . . . We will also adjust the higher-education funding formula to stress graduation rates, rather than the number of students that happen to be on campus. . . . I also want to significantly increase resources for the Division of Children and Family Services.” The Governor also described steps for economic development.
***
Arkansas Department of Finance and Administration, March 3, 2009: The Department’s Director reported that “
February net available general revenues total $207.3 million -- $16.4 million or 8.6 percent above last year, and $41.5 million or 25.0 percent above forecast.” According to the Texarkana Gazette, this supports the Governor’s proposed 1-cent cut in the State’s grocery tax. However, the Director said that layoffs and a weakening economy are expected to reduce tax revenues in 2010.”
***
Office of the Governor, March 18, 2009: “Governor Mike Beebe signed
Senate Bill 88 into law, cutting the State sales tax on groceries by another cent. Beebe and the 86th General Assembly cut three cents from the grocery tax in 2007, part of his campaign pledge to eliminate the regressive tax. Beebe also signed House Bill 1700 to expand the ARKids First health-insurance program for children, part of his health-care initiative this legislative session.”
***
Department of Finance and Administration, April 2, 2009: In the March Revenues section of its General Revenue Report for March (FY 2009), the Department states that “
March net available general revenues total $299.5 million -- $43.5 million or 12.7 percent below last year and $20.1 million or 6.3 percent below forecast.”
***
Baxter Bulletin, Mountain Home AR, April 9, 2009: “Lawmakers
approved Arkansas' $4.5 billion spending plan for the upcoming year on Wednesday (April 8), giving the final nod to a budget that relies on a third of the State's surplus to pay for a funding shortfall in some State programs. . . . The spending plan relies on more one-time money than originally proposed by Gov. Mike Beebe, who earlier in the session told lawmakers he'd likely ask for up to $60 million to plug holes in the budget. That number rose after State finance officials lowered their estimates on how much revenue the State would see next year by more than $100 million.” (NOTE: On April 9, the General Assembly went into recess until May 1 when members may make technical corrections of consider any veto overrides.)
***
Arkansas News Bureau, Little Rock, May 4, 2009: “State
revenues fell more than $25 million short of projections in April, State finance officials said Monday (May 4). Net available revenues in April totaled $491.9 million, which was $25.3 million, or 4.9 percent, below the April forecast, the State Department of Finance and Administration reported. Net revenues were $60.2 million, or 10.9 percent, below April 2008. . . . The decline was expected, DF&A Director Weiss said, noting that even with the drop in monthly collections, collections for the year are still $38 million above forecast, thanks mostly to strong collections in the early part of the fiscal year.”
*** Northwest Arkansas Business Journal, Little Rock, May 22, 2009: “Gov. Mike Beebe says he's worried about what would happen to the State's budget
if a group of (fourteen) school districts wins a lawsuit accusing the state of relying too much on local property taxes to fund schools. . . . The Arkansas Supreme Court heard oral arguments Thursday. The districts accuse the State of skimming state general revenue that should have gone to schools and replacing it with property tax money. The districts' attorney wants about $24 million in property taxes returned.”
*** Arkansas Democrat-Gazette, Little Rock, June 20, 2009: “Arkansas’ u
nemployment rate jumped half a percentage point to 7.0 percent in May, the U.S. Bureau of Labor Statistics said Friday. The State’s jobless rate is still considerably below the national average of 9.4 percent and ranks as the 12th-lowest in the country.”
*** Northwest Arkansas Business Journal, Little Rock, May 22, 2009: “Gov. Mike Beebe says he's worried about what would happen to the State's budget
if a group of (fourteen) school districts wins a lawsuit accusing the state of relying too much on local property taxes to fund schools. . . . The Arkansas Supreme Court heard oral arguments Thursday. The districts accuse the State of skimming state general revenue that should have gone to schools and replacing it with property tax money. The districts' attorney wants about $24 million in property taxes returned.”
*** Arkansas Democrat-Gazette, Little Rock, June 20, 2009: “Arkansas’
unemployment rate jumped half a percentage point to 7.0 percent in May, the U.S. Bureau of Labor Statistics said Friday. The State’s jobless rate is still considerably below the national average of 9.4 percent and ranks as the 12th-lowest in the country.”
_________________________________
Memorandum to Chairs of the Arkansas Legislative Council from the Department of Finance and Administration (on the current forecast), November 13, 2008:http://www.governor.arkansas.gov/pdf/budget/November_2008_forecast_summary_letter_and_tables.pdfGovernor Beebe’s Proposed Balanced Budget, Statement by the Governor, November 2008:http://www.governor.arkansas.gov/office_proposed_budget.html** The executive recommended 2009-2011 budget figures are available at:http://www.governor.arkansas.gov/pdf/budget/2009-2011_Exec_Recom_for_Agency_Biennial_Request.pdf*** An overview of the Governor’s Education Initiatives is available:http://www.governor.arkansas.gov/initiatives_education.htmlState of the State Address, Office of the Governor, January 13, 2009:http://www.governor.arkansas.gov/newsroom/index.php?do:newsDetail=1&news_id=1382Memorandum on the General Revenue Report for February (FY 2009), Arkansas Department of Finance and Administration, March 3, 2009:http://www.state.ar.us/dfa/budget/documents/February2009endofthemonthreport.pdf*** See the Texarkana Gazette for remarks by the Director and other info:http://www.texarkanagazette.com/news/WireHeadlines/2009/03/04/arkansas-revenues-up-almost-42m-in-febru-60.phpThe Arkansas Recovery website was launched on March 9, 2009:
http://www.recovery.arkansas.govGovernor Beebe Signs Grocery-Tax-Cut Bill, Office of the Governor, March 18, 2009:http://governor.arkansas.gov/newsroom/index.php?do:newsDetail=1&news_id=1512General Revenue Report for March (FY 2009), Department of Finance and Administration, April 2, 2009 -- Bottom of the page:http://www.state.ar.us/dfa/budget/budget_grfgi.htmlArkansas Lawmakers Give $4.5B Budget Last OK, Baxter Bulletin, Mountain Home AR, April 9, 2009:
http://www.baxterbulletin.com/article/20090409/NEWS01/904090344/1002
*** Also see budget coverage in Forbes:
http://www.forbes.com/feeds/ap/2009/04/13/ap6283260.html
State Revenues Continue to Fall, Arkansas News Bureau, Little Rock,
May 4, 2009:
http://arkansasnews.com/2009/05/04/state-revenues-continue-to-fall/
*** The link to the Department of Finance and Administration’s April 2009 revenue report is at the bottom of this page:
http://www.state.ar.us/dfa/budget/documents/apr09_general_revenue.pdf
Beebe: Schools “Misguided” on Property Tax Case, Northwest Arkansas Business Journal, Little Rock, May 22, 2009:
http://www.arkansasbusiness.com/article.aspx?aid=114927.54928.127056
Arkansas Jobless Rate Climbs to 7% in May, Arkansas Democrat-Gazette, Little Rock, June 20, 2009:
http://www2.arkansasonline.com/news/2009/jun/20/arkansas-jobless-rate-climbs-7-may-20090620/?latest
California: A Gigantic Fiscal Crisis, Stalemates, a February Budget Defeated by a Public Referendum, and Continuing Disagreements Compiled from various sources named in the text and shown in the links below.
***
California Chamber of Commerce, February 19, 2008: “On January 10, Governor Schwarzenegger
declared a fiscal emergency and called the Legislature into a special session in accordance with the terms of Proposition 58. . . . On February 16, 2008, the Legislature passed, and Governor Arnold Schwarzenegger signed a $1 billion package of bills intended to address California’s $14.5 billion fiscal crisis. . . . The plan targets every area of the budget.”
***
California Department of Education, February 20, 2008: “The
measures (for dealing with the State’s fiscal crisis) take effect immediately. Among other actions, the measures reduce current-year Proposition 98 funding for K-12 education and community colleges by $507 million and defer most of the 2008-09 July apportionment payment to September.”
***
Los Angeles Times, September 24, 2008: “After vetoing $510 million in spending passed by the Legislature, Gov. Arnold Schwarzenegger
signed the State’s tardiest budget this morning, allowing more than 80,000 state vendors with outstanding bills to be paid. . . . The State fiscal year (2009) began July 1, but disputes between lawmakers about how to erase a $15.2-billion shortfall led to the longest budget stalemate in modern California history . . . The final budget spends $145 billion. It sets aside a $1.7-billion reserve fund – nearly $1 billion more than the Legislature approved. . . . At a briefing, Schwarzenegger’s budget director, Mike Genest, told reporters that even the increased reserve fund was ‘not nearly adequate, given the ailing economy.’”
*** Los Angeles Times, October 29, 2008: Governor Arnold Schwarzenegger told education leaders on October 28 that
he would push for a tax hike and deep cuts to schools to help close the State's yawning budget gap, according to several participants in a meeting with him. The news, delivered in a conference room outside the governor's office, came as a shock to the educators, who were told to prepare for immediate cuts in the range of $2 billion to $4 billion.”
***
Office of the Governor, November 6, 2008: “Today Governor Arnold Schwarzenegger
called a special session of the legislature and announced an action plan to get the budget back on track, invigorate (California’s) economy, and generate jobs for the State's unemployed. The Governor called for a combination of cuts and revenue increases to solve California's budget shortfall which has now reached $11.2 billion.. . . . While Governor Schwarzenegger has worked to fix the State's spending problem, and has kept state spending relatively flat for the past three budget cycles, the dramatic drop in revenue projections over the past six weeks presents an extraordinary situation which, combined with the volatility of (California’s) tax system, creates a revenue problem. To address this extraordinary situation, the Governor is proposing $4.5 billion in difficult cuts and $4.7 billion in new revenues for the current-year budget which will ensure the State can protect vital services.” A fact sheet associated with this announcement summarizes proposed cuts across State agencies.
***
Los Angeles Times, November 17, 2008: “Most of California’s
prospective cuts -- more than $2 billion -- would be to California's public elementary, middle and high schools, on top of the $3-billion cut from K-12 funding in the current budget. According to the Census Bureau, California is already spending far less than the national average for each of its students, and about half what States such as New York and New Jersey and even the District of Columbia spend per student. . . . The Governor is also proposing to slash $330 million from community college budgets, $66 million from the Cal State system and $66 million from the University of California -- all, again, on top of cuts that have already been made.”
***
Office of the Governor, December 1, 2008: Governor Arnold Schwarzenegger today
declared a fiscal emergency for the State of California, allowing him to call a Proposition 58 legislative special session to address this emergency. The Governor also called a second legislative special session to address the State's economy. . . . Under Proposition 58 the legislature has 45 days to pass and send a bill or bills to the Governor's desk addressing the State's budget crisis. If the 45 days pass and the legislature has not passed bills to address the problem, they cannot adjourn or act on other bills until the State's fiscal emergency is addressed. . . . The dramatic deterioration in revenue projections since the signing of 2008 Budget Act presents an extraordinary situation which, combined with the volatility of (the State’s) tax system, creates a revenue problem. The current fiscal year budget shortfall is projected to be $11.2 billion. Over the next 18 months, preliminary estimates from the Legislative Analyst's Office show the budget deficit reaching a staggering $28 billion.”
***
Office of the Governor, December 10, 2008: At a press conference, Governor Schwarzenegger said that “on December 1, I declared a special session and declared a fiscal emergency and told the legislature, the new legislature, that the problem was getting worse by the minute. As a matter of fact,
our budget situation this year, our budget deficit, is not anymore $11.2 billion; it is now $14.8 billion. And this is why I'm calling for a Big Five Meeting tomorrow, to talk about those new numbers and what that means for the following fiscal year. . . . As you can see, those numbers are changing all the time. And this represents 35 days since we called the first special session and here you see the numbers. Every second the State is losing $470, every minute $28,000 and every hour $1.7 million and every day $40 million. So that is approximately more than a billion dollars a month that we are losing when the legislators don't act. . . . So I call on the legislators to be leaders, to negotiate, to compromise and to come to the table and to come to a conclusion here and solve this financial problem once and for all. Otherwise, it's only going to get worse.”
***
Los Angeles Times, December 16, 2008: “The State's
healthcare program for the working poor received a temporary reprieve Monday when First 5 California's board voted to provide $16.8 million to avert imminent enrollment restrictions that were expected to leave 162,000 children without medical coverage in the next six months. The money will allow the Healthy Families Program to continue enrolling children (under age 6) through the end of the fiscal year in June instead of capping enrollment, as State officials planned to do Wednesday. But the unexpected intervention, hailed by children's advocates, is only a stopgap measure as the Legislature remains deadlocked over how to erase a budget gap that is projected to reach $41.8 billion by mid-2010.”
***
Office of the Governor, December 19, 2008: “Governor Arnold Schwarzenegger today
declared a fiscal emergency for the State of California, allowing him to call a Proposition 58 legislative special session to address this emergency. Yesterday, the Governor declared he would veto the budget bills sent to him by the legislature (on December 18) which failed to provide real revenues balanced with real long term cuts, aggressive economic stimulus to put Californians to work, and mortgage relief to keep Californians in their homes. . . . The Controller, Treasurer and the Department of Finance expect the State to run out of cash in February.”
***
California Department of Finance, December 31, 2008: The
2009-2010 Governor’s budget (released on December 31) states that California’s budget gap “is partly due to the continued structural budget deficit that began ten years ago and that has never been completely eliminated. Second, a major part of the State’s budget gap is due to the dramatic decline in revenues that has resulted from the current recession. The budget projects a deficit in the current year of $14.8 billion. If unaddressed, this deficit would grow to $41.6 billion by the end of the next fiscal year. The dual causes of the budget gap suggest both permanent and temporary solutions are necessary. Therefore, the budget proposes both.”
***
Office of the Governor, December 31, 2008: “Governor Arnold Schwarzenegger today issued the following statement on his latest budget proposal to the legislature:
’Today’s announcement represents
the sixth budget I have proposed to the legislature this year. The fact that the legislature has failed to reach a compromise between Republicans and Democrats and take action during the last three special sessions is inexcusable.
My proposal today follows the same blueprint of my last two proposals which balance cuts with revenue proposals.” NOTE: Only three States require other 2/3 or 3/4 votes to approve a budget: Arkansas (3/4); California (2/3); Rhode Island (2/3).
***
Los Angeles Times, January 1, 2009: “An
article that explains the Governor’s new 18-month budget plan says that “the cuts in the proposal are deep, including a reduction of billions of dollars in K-12 education spending from current levels and shortening the school year by five days. State university and community college offerings would also be cut back as tuition and fees go up. Healthcare programs for the poor would be slashed, as would welfare for the elderly and disabled. . . . The governor's new budget plan is based on previous strategies that have failed to win traction in the Legislature. Republican lawmakers quickly said they would not support it, and Democrats indicated it would be of little help in resolving the stalemated negotiations their leaders have been holding with Schwarzenegger for weeks.”
***
Office of the Governor, January 7, 2009: Yesterday, the Governor
vetoed the budget bills sent to him by the legislature which fail to provide real solutions for California’s budget crisis and economic stimulus to aid California’s economy. At a press conference, the Governor said “now it’s time for all of the legislators to come to the table, Democrats and Republicans, to take up the budget that I laid out last week (December 31). As I’ve said before, the best way to solve our problems is with a balanced approach that is designed like a four-legged stool. . . The first leg is to reduce spending by $17.4 billion. And, as you know, those come from three main categories or areas, which are education, health and human services, and prisons. The second leg of that stool is to increase revenues by $14.3 billion, coming mainly from a temporary 1.5-cent increase in State sales tax and use tax. And the next leg of that stool is economic stimulus. . . . It’s about jobs, jobs, jobs. . . The last leg of the stool is to make government more efficient.”
***
Los Angeles Times, January 16, 2009: “State Controller John Chiang announced today that his office
would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the State's cash crisis. Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the State's nearly $42-billion budget deficit. . . . The controller said the suspended payments could be rolled into IOUs if California still lacked sufficient cash to pay its bills come March or April.”
***
California Bureau of State Audits, February 3, 2009: “Based on the current fiscal crisis and a history of ongoing deficits, the Bureau has
added the State’s budget condition to its list of high-risk issues. We believe that the record-breaking delays in passing the fiscal year 2008-09 budget, the need for subsequent special sessions focused on the budget, and the multibillion dollar budget gap lawmakers are attempting to close highlight the potential for the State’s budget process and condition to add significant roadblocks to the task of managing and improving State and local government. In analyzing information on budget deficits and surpluses during the last 20 years, . . . we found that all measures pointed to the same conclusion -- the State has experienced ongoing deficits that greatly outweigh any surpluses. . . . We found that nearly half of the amounts related to the budget solutions implemented to resolve the shortfalls have only pushed the problem into the future. This report also identifies various factors that make it difficult for decision makers to reverse this course.”
***
San Francisco Chronicle, February 4, 2009: “In his grimmest State of Education address yet, state Superintendent of Public Instruction Jack O'Connell pointed to a
‘precarious’ school system all but collapsing under the weight of California's fiscal crisis. Schools expect to lose $10 billion this year alone, resulting in teacher layoffs, soaring class sizes and fewer librarians and nurses, O'Connell said in his sixth annual overview of education. . . . To ease the burden, O'Connell said his Department of Education will end compliance visits to districts for at least a year. . . . The moratorium essentially gives districts a green light to spend scarce dollars as they wish. . . . Meanwhile, the fiscal crisis comes at a time when students are not only needier -- the numbers of homeless students and those qualifying for subsidized lunch have soared -- but when more is demanded of them academically, O'Connell said. “
***
San Francisco Chronicle, February 4, 2009: “California has the
worst credit rating of any of the 50 states, according to Standard & Poor's, which downgraded the Golden State's score this week. . . . The Standard & Poor’s move affects the state's $46 billion in general obligation bond debt and will make it more expensive for the state to borrow money. It also decreases the value of investments for current bondholders who may want to sell.”
***
Office of the Governor, February 19, 2009: At a press conference on the
passage of the budget, Governor Schwarzenegger said “the legislators’ action to solve our $42 billion deficit was difficult but courageous and just what California needs. This is the perfect medicine for our ailing economy and it will boost public confidence in California, reassure the financial community and allow us to resume selling our bonds and rebuild our State. . . . I know how difficult this was. Our budget crisis required Democrats to compromise on their opposition to spending cuts and it required Republicans to compromise on their fierce opposition to tax increases. We also had to overcome protests from the powerful special interests that carry much of the weight right here in California and in this Capitol. Labor leaders threatened to recall Democrats if they voted for any parts of the budget that they didn’t like and Republicans voting for tax increases were pictured with their heads on sticks and also they were threatened with recalls. . . . This is the charged atmosphere that we negotiated in and I congratulate the legislative leaders for resisting those forces and doing what was right for the State.”
NOTE: Californians will be asked to approve several of the budget measures in a May 19 ballot. These include an annual spending cap; modification of a minimum school funding guarantee; shifting mental health funds to pay for the Early Periodic Screening, Diagnosis and Treatment Program for children; shifting funds from early child development to other children’s programs; lottery changes; and pay freezes for legislators and elected officers during deficit years.
*** S
an Francisco Chronicle, February 20, 2009: This article
summarizes “cuts over two years to public education under the new State budget: (a) CALIFORNIA STATE UNIVERSITY -- $163 million, of which $50 million could be restored from the federal stimulus package: (b) UNIVERSITY OF CALIFORNIA -- $115.5 million, of which $50 million could be restored with federal money; (c) COMMUNITY COLLEGES -- Lose a cost-of-living adjustment of less than 1 percent; (d) K-12 EDUCATION -- Loses $8.4 billion, or $380 per pupil; (e) CUT BY 15 TO 20 PERCENT -- All other programs, including charter school facilities grants and state testing; (f) PROGRAMS NOW OPTIONAL -- Include gifted education, arts and music, and summer school; (g) SAFE FROM CUTS -- Eight K-12 programs, including special education and K-3 class-size reduction.”
***
State Superintendent of Public Instruction, February 25, 2009: In a
memo to county and district superintendents, charter school administrators, and country chief business officers, Superintendent Jack O’Conner wrote: “This letter summarizes major provisions of the 2008 and 2009 Budget Acts and related bills. The last section of the letter provides a list of the bills containing provisions related to kindergarten through grade twelve (K–12) education. A table of categorical programs affected by the various flexibility provisions contained in the budget package is included in Attachment 1.” (NOTE: This is a detailed and clear review of education funding.)
***
State Superintendent of Public Instruction, March 14, 2009: “State Superintendent of Public Instruction Jack O'Connell today joined educators at a news conference in Pasadena to acknowledge the growing tally of teachers receiving pink slips or potential layoff notices.
More than 26,590 teachers and other school staff have received the pink slips as of March 14, which is one day before the annual March 15 statutory deadline for districts to issue layoff notices for the coming school year. Districts are handing out the notices of potential layoff to teachers and other staff in response to the State budget crisis. The recently enacted State budget included $11.6 billion in cuts to public education budget over the next 15 months. . . .The recently enacted budget cuts come on top of several years of reduced support in the State budget for public education. Last year, roughly 10,000 teachers received pink slips and an estimated 5,000 ultimately lost their jobs.”
***
San Francisco Chronicle, March 14, 2009: “California's
3-week-old State budget is already out of balance, according to a report Friday (March 13) by the nonpartisan legislative analyst, who said the State's revenue will fall $8 billion short of projections in the fiscal year that begins July 1. And the shortfall could be billions worse if voters reject at least three of the six ballot measures in the May 19 special election that are tied directly to the State budget's bottom line, Legislative Analyst Mac Taylor said. . . . In addition, Taylor said the State's fiscal crisis will get worse after next year because many solutions to this year's deficit are one-time fixes, such as the lottery borrowing and money from the federal economic stimulus package.”
***
Los Angeles Times, March 20, 2009: “California
plans to sell $4 billion in tax-free bonds next week to fund infrastructure projects, and the State is hoping for robust demand from individual investors. The offering is expected to be a big test of California's standing in financial markets amid a still-precarious budget situation. The last State bond sale was in June 2008.”
***
Office of the Governor, April 18, 2009: “Governor Arnold Schwarzenegger announced that California
school districts and universities can immediately begin applying for $3.1 billion in American Recovery and Reinvestment Act dollars meant to prevent the need for laying off teachers, professors, and other school employees, and to protect education funding and reform efforts in this difficult economic time. . . . With his Recovery Task Force, Governor Schwarzenegger last week signed the application for the funding, opening the door for approximately $4.9 billion to flow into California and quickly to schools where it will preserve education programs and protect jobs, as well as an additional $1.1 billion to protect other State programs. Now, less than two weeks after the federal government made the funding guidelines available, California can tap into the first installment of that funding: $3.1 billion, of which approximately $2.6 billion is estimated to go toward K-12 schools and $537 million toward the California State University and University of California systems.”
***
California Department of Finance, May 2009: In its 2009-10 May Revision of General Fund Proposals, the Department of Finance stated that “
the budget has again fallen out of balance. Specifically, the May Revision projects spending this year and next will exceed available funds by $15 billion in the absence of any corrective action. Moreover, the budget assumes the passage of Propositions 1A, 1B, 1C, 1D, and 1E on the May 19 ballot. Should these measures all fail, the budget will be an additional $5.9 billion out of balance in 2009-10. Out-year deficits would also be higher, given a revenue loss of $16.2 billion.”
***
Office of the Governor, May 14, 2009: “Governor Arnold Schwarzenegger today
unveiled two May Revision Budget proposals to address the State’s pending deficit. . . . Just months after the Governor and State lawmakers solved a $42 billion deficit, the worldwide economic slowdown has produced a new multi-billion dollar deficit and the State is looking at some unprecedented actions to bring our budget back into balance. . . . The Governor is proposing a mix of cuts, borrowing and other measures to balance the budget: (a) Obtain up to $6 billion through a Revenue Anticipation Warrant that will help the State avoid deeper cuts to vital State programs and services. (b) Health and Human Services makes up the second-largest part of California’s General Fund, meaning the State must find savings in social, developmental and health care services. Examples include reducing funding for Healthy Families, rolling back the rate increase for Family Planning Services, and reducing Medi-Cal payments to private hospitals by 10 percent. (c) When California’s revenues fall, so does the formula for education spending, translating to a $3 billion reduction in education spending. This could mean a school year shortened by five days. (d) Delay all repairs to the State Capitol for one year. . . . Additionally, the Governor is proposing measures that will help root out waste and redundancy in government, allow the State to take advantage of its real estate assets to help balance the budget and improve government efficiency” (which includes reducing the State’s workforce by 5,000 General Fund employees). (NOTE: The two revision proposals anticipate whether voters approve the propositions on May 19 or do not.)
***
State Superintendent of Public Instruction, May 14, 2009: In a response to the release the Governor’s May Revision budgets, State Superintendent Jack O’Connell stated that “
the two budget proposals the Governor released today offer a choice between devastating and horrific cuts to public schools. I am heartsick at the prospect that public schools in California are being asked to absorb between $800 million and $1.4 billion in the final month of the traditional school year, and then an additional $1.6 billion to $4.2 billion in the next school year. If approved, these proposed cuts would be added to the $11.6 billion in cuts to schools approved last February.
"Cuts of this magnitude will have immediate negative impacts in every school in our State. Class sizes will increase. Fewer of the 27,886 teachers who received pink slips will be retained. The ratio of students to school counselors and school nurses will widen further. Arts, music, and career technical education will be slashed. he pain of these cuts will be felt in thousands of other ways, large and small, in classrooms around our state. I am gravely concerned that these devastating cuts will interrupt our progress in improving student achievement. I am also worried that cuts this deep to California's public schools will jeopardize our maintenance-of-effort commitment to U.S. Department of Education and put our federal stimulus money at risk.” The statement also discusses
the need to “fix the structural problems in our State budgeting process.”
***
San Jose Business Journal, May 20, 2009: This article reports on the results of the May 19 referendum on six budget propositions. “The only proposition to pass, by about 3-to-1 margin, bars pay increases for elected State officials during budget deficits (Proposition 1F). The failure of the measures pegs the upcoming fiscal year's deficit at $21 billion, up from the previous projection of about $15 billion.”
NOTE: The defeated budget propositions are 1A (rainy day fund); 1B (education); 1C (revamp the lottery); 1D (child services); and 1E (mental health).
***
Office of the Governor, May 21, 2009: The Governor stated that “yesterday I directed my Department of Finance to bring me additional options to cut State spending so that we can eliminate the need to seek borrowing in the form of a revenue anticipation warrant in the
revised State budget I have proposed.”
***
Reuters, June 8, 2009: “California Gov. Arnold Schwarzenegger, facing a State budget gap of $24.3 billion, on Monday ordered a
halt to funding for State contracts on everything from pencils to office space. His order applies to all contracts signed since March 1, excluding those for public safety, and bars new contracts. Projects funded by bonds and federal stimulus dollars are also exempt.”
***
Office of the Governor, June 8, 2009: “Governor Schwarzenegger today highlighted his
first-in-the-nation digital textbooks initiative at Calabasas High School. The Governor introduced this initiative as way to provide schools and students a new way to access textbooks that is less expensive, easier and lighter. The first phase will bring high school math and science classes access to free digital textbooks by fall 2009 -- with additional content to follow.
. . . This initiative has the potential to save California's schools millions of dollars. . . . Switching to digital textbooks will free up funds for other spending priorities. Last year, the State's share alone for school books and other instructional materials was $350 million, this is funding that can be used elsewhere after free, digital textbooks are made available. Schools can take advantage of this program and save money even without computers or laptops. Teachers can print out material and it would still cost a fraction of the price of a traditional textbook.”
***
Reuters, June 16, 2009: “The White House on Tuesday
dashed hopes that the federal government would help California overcome a mammoth budget crisis that has brought the state dangerously close to an economic meltdown, saying the State will have to solve the problem on its own.”
***
Office of the Governor, June 18, 2009: In a speech in the San Joaquin Valley about recent legislative actions,, the Governor said, among other things that, “
this week the legislators came forward with their own proposal. Their budget still has too many of the gimmicks in there and I told them that yesterday at the meetings — I met with the Democratic leaders yesterday and with the Republican leaders two days ago —
and I let them know that this has too many gimmicks still in there, one-time solutions, and pushing the problem off into the future and actually pushing the problem off to the next legislature or to the next governor, which is something we don’t want to do. And rather than turning inward and looking at government very carefully, of what can we do to save money and to provide those programs more efficiently, they looked outward. They looked at all of you and said, ‘Let’s raise the taxes again.’ So even though just recently, just four months ago, we had the biggest tax increase in the history of California of $12 billion, now they want to come back to you again and raise your taxes once again. And so I said to them, I said, ‘I will not sign a budget that has tax increases in that budget.’ . . . There is also a great opportunity here for structural reform and to make our budget and to make our state run more efficiently. . . . I’m also proposing once again to eliminate and consolidate more than a dozen of the state departments, boards and commissions. . . . I can guarantee you, I will not sign a budget, I will not go and take a dollar away from education or from health care or from public safety or state parks or anything like that, if we don’t first cut those boards and commissions.”
_________________________________
Governor Signs Bill Package Aimed at Fiscal Crisis, California Chamber of Commerce, February 19, 2008: http://www.calchamber.com/Headlines/Pages/02192008TS.aspx Budget Changes Resulting from the Special Session, California Department of Education, February 20, 2008: http://www.cde.ca.gov/fg/fr/se/ltrgb08ss.asp Arnold Schwarzenegger Signs $145 Billion California Budget, Los Angeles Times, September 24, 2008:
http://articles.latimes.com/2008/sep/24/local/me-budget24 California Education Leaders Told to Brace for Big Budget Cuts, Los Angeles Times, October 29, 2008: http://www.latimes.com/news/education/la-me-budget29-2008oct29,0,4953207.story Governor Schwarzenegger Announces Plans to Address Budget Emergency and Stimulate California’s Economy, Office of the Governor, November 6, 2008 – Click at the right for a fact sheet that summarizes the Governor’s proposed cuts: http://gov.ca.gov/index.php?/press-release/10966/ California Is Cutting Education Funding at Its Own Peril, Los Angeles Times, November 17, 2008: http://www.latimes.com/news/education/la-oe-makdisi17-2008nov17,0,2283512.story Gov. Schwarzenegger Calls New Legislature Into a Prop 58 Special Session and Second Special Session to Address State’s Economy, Office of the Governor, December 1, 2008: http://gov.ca.gov/index.php?/press-release/11159/ Governor Holds Capitol Press Conference to Discuss State Budget, Office of the Governor, December 10, 2008: http://gov.ca.gov/index.php?/speech/11224/ State’s Healthy Families Program Gets a Last-Minute Lifeline, Los Angeles Times, December 16, 2008: http://www.latimes.com/news/local/la-me-budget16-2008dec16,0,212604.story*** An October 2008 article described the impact of the FY 2009 budget cuts on this program:http://www.first5la.org/articles/policy-pick-governors-budget-impacts-californias-children Gov. Schwarzenegger Calls Legislature Into Second Prop 58 Special Session, Office of the Governor, December 19, 2008: http://gov.ca.gov/press-release/11306/ 2009-2010 Governor’s Budget, California Department of Finance, December 31, 2008: http://www.dof.ca.gov/budget/historical/2009-10/documents/GB%20GF%20Proposals.pdf Gov. Schwarzenegger Issues Statement on His Latest Budget Proposal to the Legislature, Office of the Governor, December 31, 2008: http://gov.ca.gov/press-release/11347/ Schwarzenegger Steps Up Release of Budget Plan, Los Angeles Times, January 1, 2009: http://www.latimes.com/news/local/la-me-budget1-2009jan01,0,2967427.story Governor Holds Capitol Press Conference to Discuss State Budget, Office of the Governor, January 7, 2009 -- Full text and video: http://gov.ca.gov/index.php?/speech/11372/ California Controller Suspends Tax Refunds, Welfare Checks, Los Angeles Times, January 16, 2009: http://www.latimes.com/news/local/la-me-budget17-2009jan17,0,4472460.storyHigh Risk: The California State Auditor Has Designated the State Budget as a High-Risk Area, Bureau of State Audits, released on February 3, 2009:http://www.bsa.ca.gov/pdfs/reports/2008-603.pdfState School Chief Sees “Precarious” Situation, San Francisco Chronicle, February 4, 2009:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/04/BACC15MHFJ.DTLState’s Credit Rating Falls To Worst in Nation, San Francisco Chronicle, February 4, 2009:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/03/BAJ015MPQD.DTLGovernor Holds Press Conference to Discuss Passage of the Budget, Office of the Governor, February 19, 2009:
http://gov.ca.gov/index.php?/speech/11518/*** A budget fact sheet from the Governor’s February 19 press conference is available at: http://gov.ca.gov/index.php?/fact-sheet/11512/*** A summary of propositions for the May 19 ballot was published by the Los Angeles Times on March 13, 2009:http://www.latimes.com/news/local/la-me-special-electionbox13-2009mar13,0,6817035.story*** An informative article on Proposition 1B (school funding) was published in the Los Angeles Times on April 22, 2009:http://www.latimes.com/news/education/la-me-prop1b22-2009apr22,0,777252.story?track=rssBudget Takes $8.4 Billion From K-12 Classes, San Francisco Chronicle, February 20, 2009:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/19/MN5A1615DV.DTLAction on 2008-2009 Budget Acts, Memo to County and District Superintendents, Charter School Administrators, & County Chief Business Officers from Jack O’Connell, State Superintendent of Public Instruction, February 25, 2009:http://www.cde.ca.gov/nr/el/le/09ltr0225bdgt.aspCalifornia’s website on the use of federal stimulus funds, launched in March 2009, is at:http://www.recovery.ca.gov/Schools Chief Jack O’Connell Joins Educators in Recognition of Record Number of Teachers Receiving Layoff Notices, State Superintendent of Public Instruction, March 14, 2009:http://www.cde.ca.gov/nr/ne/yr09/yr09rel40.aspCalifornia Faces New Fiscal Crisis, Report Says, San Francisco Chronicle, March 14, 2009:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/14/MNP316ESCG.DTLCalifornia Courting Individual Investors for Tax-Free Bond Sale, Los Angeles Times, March 20, 2009:http://www.latimes.com/business/la-fi-calbonds20-2009mar20,0,21791.storyGovernor Schwarzenegger Announces Education Recovery Act Dollars Available to California Schools, Office of the Governor, April 18, 2009:
http://gov.ca.gov/index.php?/press-release/12054/
2009-10 May Revision -- General Fund Proposals, California Department of Finance, May 2009:
http://www.dof.ca.gov/budget/historical/2009-10/may_revision/documents/May_Revision_2009-10_General_Fund_Proposals.pdf
Gov. Schwarzenegger Unveils Two May Revision Proposals to Address California’s Budget Deficit, Office of the Governor, May 14, 2009:
http://gov.ca.gov/press-release/12307/
*** Also see the transcript of the Governor’s speech on the May revision at a Town Hall meeting on May 18:
http://gov.ca.gov/speech/12344/
Schools Chief Jack O’Connell Decries Proposed New Cuts to Public Education -- Governor’s May Budget Revision Cuts Billions from Public Schools, State Superintendent of Public Instruction, May 14, 2009:
http://www.cde.ca.gov/nr/ne/yr09/yr09rel074.asp
California Voters Send Pols Back to Drawing Board on Budget, San Jose Business Journal, May 20, 2009:
http://www.bizjournals.com/sanjose/stories/2009/05/18/daily39.html
*** Also see the Los Angeles Times on May 20 -- Click for details on the five propositions that failed and one that voters approved:
http://www.latimes.com/news/local/la-me-props20-2009may20,0,5134709.storyGovernor Schwarzenegger Issues Statement on His Budget Proposal, Office of the Governor, May 21, 2009:http://gov.ca.gov/press-release/12351/*** The 2009-10 May Revision Statewide Tables (posted on 6/5/09), the 2009-10 May Revision General Fund Proposal (posted 6/1/09), and two related displays are available at: http://www.dof.ca.gov/California to Eliminate Funds for Recent Contracts, Reuters, June 8, 2009:http://www.reuters.com/article/bondsNews/idUSN0832492220090608Leading the National Into a Digital Textbook Future, Office of the Governor, June 8, 2009:http://gov.ca.gov/index.php?/fact-sheet/12455/White House Says No To California Budget Help, Reuters, June 16, 2009:http://www.reuters.com/article/topNews/idUSTRE55F5VK20090616?feedType=RSS&feedName=topNewsGovernor Delivers Speech to Update Californians on Status of the State Budget, Office of the Governor, June 18, 2009:http://gov.ca.gov/speech/12555/Colorado: Budget Adjustments for Current and Coming Fiscal Years Compiled from various sources named in the text and in the links below.
***
Office of the Governor, November 2, 2008: “Gov. Bill Ritter today
unveiled a lean budget for fiscal 2009-10, a proposal that will hold spending well below the State's growth limit, stimulate Colorado's economy and ensure that State government is able to continue providing essential public safety, health and education services. (The proposed budget was submitted to the State Legislature’s Joint Budget Committee). . . . An updated revenue forecast shows sufficient revenues to meet the State's authorized 6 percent growth limit, but Gov. Ritter has imposed a 4.98 percent cap in his proposal -- setting aside the remaining 1 percent, or $77 million, into an unprecedented reserve fund. . . . The budget Increases investment in K-12 education by $221 million, for a total request of $4.5 billion, including $2.9 billion General Fund -- and also provides $60 million to expand full-day kindergarten by 8,755 students. For higher education, the budget increases investment in colleges and universities by $40 million, for a total request of $2.9 billion, including $853.2 million General Fund.”
***
7News, The Denver Channel, December 8, 2008: According to a forecast released on December 8, “University of Colorado-Boulder economists expect the State unemployment rate to rise to 6.5 percent next year as the State joins the rest of the U.S. in a recession. The rate was 5.7 percent in October. . . . CU-Boulder's Leeds School of Business
predicts Colorado will lose jobs in 2009 for just the seventh time since annual records have been kept since 1939. Economist Richard Wobbekind of CU said he expects 4,000 job losses next year.”
***
Office of State Planning and Budgeting (OSPB), December 19, 2008: The December 2008 Revenue Forecast states that “due to the declining economic situation globally, nationally, and now locally, this OSPB forecast reflects that t
he General Fund revenue projections will not be able to support full 6 percent General Fund appropriations growth in any of the forecast years. While economic conditions are anticipated to improve by the end of 2009, due to the timing of Referendum C expiring June 30, 2010, the outlook for State budgeting will remain challenging.”
***
Office of State Planning and Budgeting (OSPB), January 2, 2009: In a letter to the Chairman of the Colorado General Assembly’s Joint Budget Committee, the Director of State Planning and Budgeting submitted the Governor’s
supplemental budget request for adjustments to the FY 2008-09 budget and associated amendments to the November 1 FY 2009-10 budget. The letter stated that these changes are submitted in an environment of great economic uncertainly and State General Fund revenue shortfalls. OSPB believes there will be a significant General Fund revenue shortfall in FY 2008-09 and 2009-10. OSPB also believes that the impact of the recession will be felt well into the future. . . . OSPB will submit its FY 2008-09 balancing plan to the Joint Budget Committee on January 15, and will submit its FY 2009-10 balancing plan on January 23.”
***
Office of the Governor, January 8, 2009: In his State of the State address to the Legislature
Governor Ritter “said his priorities this session will be on (a) balancing the State budget; . . . (b) protecting businesses, creating jobs, and strengthening the economy; . . . (c) a new energy economy (clean energy, wind and solar projects); . . . (d) transportation; . . . (e) education reform; . . . (f) health care reform. . . . In EDUCATION, Governor Ritter’s proposal attempts to chart a new mission for concurrent enrollment programs (postsecondary courses while still in high school) by serving a wider range of students, particularly those that represent communities with historically low college participation rates. . . . In HEALTH CARE, the proposal would increase hospital reimbursement rates under Medicaid and the Colorado Indigent Care Program . . . and cover the uninsured by increasing eligibility for Medicaid and CHP+.”
***
Office of State Planning and Budgeting (OSPB), January 15, 2009: In a letter to the Chairman of the General Assembly’s Joint Budget Committee, the Director of Colorado’s OSPB
submitted the Governor’s budget balancing plan for FY 2008-09. Among other things, the letter states that “we have given the highest priority to protecting life, safety and public health. In addition, the Governor has directed me to protect higher educating funding to the extent possible. . . . The Governor’s plan contains General Fund shortfall proposals for 2008-09 totaling $631.9 million. . . . Governor Ritter will submit his plan for balancing the FY 2009-10 budget on January 23.”
***
Office of the Governor, January 27, 2009: “Gov. Bill Ritter today continued submitting recommendations to the legislature's Joint Budget Committee to close a $1 billion shortfall, with these
newest proposals focusing on fiscal year 2009-10, which starts July 1. . . . The FY09-10 recommendations include: (a) $1 billion worth of proposals, including $696.2 million in actual General Fund cuts and reductions, and another $126.9 million in reduced obligations, for an overall decline of $823.1 million; the proposals represent a 10 percent General Fund reduction from Gov. Ritter's original Nov. 1 FY09-10 General Fund operating budget request of $8.2 billion to the Joint Budget Committee; (b) a carry-over of many of the items from the FY08-09 balancing plan into FY09-10; and (c) an estimated $259 million of anticipated revenue from the federal American Recovery and Reinvestment Act .” Among the provisions of the plan are: WORKFORCE -- Keeping vacant of eliminating more than 540 full-time equivalent positions; five unpaid furlough days on most of the State’s workforce; withholding salary increases for 26,000 State employees. CORRECTIONS: Closing two facilities and delaying the opening of a State penitentiary and a diagnostic center. HUMAN SERVICES: Closing two facilities and reducing an earlier request for increased funding for developmental disability services. EDUCATION: Reducing State K-12 funding by $126 million (3.8% decline from the initial FY 2009-10 proposal); these reductions include suspending a second enrollment count for military children, reducing charter school capital construction, and reducing full-day kindergarten expansion. HEALTH CARE: Reducing Medicaid expenditures, provider rates, and reimbursement obligations; and suspending outreach efforts and reducing funding for Children’s Basic Health Plan Plus. OTHER: Eliminating the Colorado Student Before and After School Program.
***
Denver Post, February 17, 2009: “Colorado's economy is still bad, and the
State's budget — which faces a $1 billion shortfall over the next 16 months — won't be much better off even two years from now. That was the grim assessment lawmakers heard Monday as they were briefed on the budget in an unusual joint House and Senate session. The purpose was to help all lawmakers understand how the six-member Joint Budget Committee crafted a plan to balance the budget in the current fiscal year, which ends in June. The plan relies on transferring $230.9 million from cash funds, spending down $148.6 million in reserves and cutting a variety of programs. It pushes as much of the pain into next year as possible, meaning that some $800 million in cuts would be necessary then.” This article includes a summary of where cuts would be made.
***
Office of State Planning and Budgeting, February 23, 2009: In a letter
submitting the Governor’s final budget for FY 2008-09 and FY 2009-10 to the Honorable Moe Keller, Chair of the Joint Budget Committee of the Colorado General Assembly, this office’s director stated that “Governor Ritter’s January 15 submission for FY 2008-09 provided $631.9 million of General Fund reductions, transfers and diversions, and reserve changes -- and the Governor’s January 27 submission provided $1,026.7 million of General Fund balancing recommendations, including $823.1 million in General Fund expenditure reductions. The Governor’s February 23 submission for FY 2008-09 and FY 2009-10 continues to balance these assumptions while accommodating increases in State spending in Medicaid and other core services, as well as other priorities. As reflected in these budget submissions, the Governor’s highest priority of the budget continues to be protecting life, safety, and public health. The Governor continues to direct that higher education funding be protected to the extent possible and to hold mental health services harmless to the greatest degree possible. Even with the federal stimulus package, the proposed budget reductions cut deeply into many vital State services.” The letter includes details on the primary changes from the prior submissions.
***
Denver Business Journal, March 11, 2009: “Colorado's
unemployment rate rose to 6.6 percent in January 2009, up from 5.8 percent in December and 4.3 percent in January 2008, the State’s Department of Labor and Employment reported Wednesday (March 11). . . . The U.S. unemployment rate was 7.6 percent in January.”
***
Office of the Governor, March 13, 2009: “Gov. Bill Ritter, legislative leaders and education advocates today
introduced Colorado ASCENT, new bipartisan legislation that will allow high school students statewide to earn a diploma while simultaneously completing a college associate's degree.” A fact sheet is shown at the end of the page.
***
Office of State Planning and Budgeting (OSPB), March 20, 2009: “This memorandum presents the March 2009 OSPB revenue forecast. . . . The OSPB forecast reflects that General Fund
revenue projections will not be able to support full 6 percent General Fund appropriations growth during the forecast period. . . . Gross General Fund revenues are now anticipated to fall 5.4 percent below FY 2007-08 levels. . . . FY 2008-09 General Fund revenues are projected to equal $7.3 billion. Beyond FY 2008-09, individual income taxes are forecast to remain suppressed due to projected negative job growth through much of 2009 and only a small improvement in corporate taxes. Colorado’s economy is still anticipated to turn positive again near the end of 2009, although recovery is anticipated to be more gradual than previously forecast. . . . Cash fund revenues are forecast to decrease 1.0 percent in FY 2008-09.” Many other details are included in the forecast.
***
Office of the Governor, April 1, 2009: “Gov. Bill Ritter said today that the
$7.5 million in American Recovery and Reinvestment Act funds heading to Colorado's 15 Community Health Centers will improve care for Colorado residents and create and preserve jobs all across the State. . . . These Recovery Act funds will help create or protect more than 150 Colorado jobs and provide 40,000 new patients with access to care, according to the Colorado Community Health Network.”
***
Denver Business Journal, April 23, 2009: “The Colorado
Legislature has approved an $18 billion State budget that avoids once-threatened $300 million cuts to higher education, but it calls for steep reductions elsewhere, from prisons and health clinics to wages for State workers. . . . Elements of the spending plan include: (a) up to eight unpaid furlough days for state workers;(b) reducing payouts to health-care providers for services to the needy and elderly; (c) drawing funds that otherwise would go to stop-smoking programs; (d) tapping a variety of special-purpose funds; and (e) new taxes on tobacco and vending machines.”
***
Office of the Governor, May 6, 2009: “As the General Assembly wrapped up its 2009 legislative session, Gov. Bill Ritter today congratulated lawmakers for making significant advances in job creation, education reform, long-term budget reform, healthcare affordability and transportation funding. ‘Despite the worst economy in 75 years, we helped create jobs, strengthen communities, protect the vulnerable and create opportunities all across the state,’ Gov. Ritter said. ‘Despite cutting nearly $1.5 billion, we delivered a balanced budget that
preserves investments in education, healthcare and public safety.’” This statement includes summaries of legislation on (a) job creation, business development and economic recovery; (b) health care; (c) transportation; (d) new energy economy; (e) education; and (f) State budget and fiscal reform.
***
Office of the Governor, May 21, 2009: “Gov. Bill Ritter today signed into law a comprehensive package of
education-reform measures, including bills to help reduce the dropout rate, allow students to simultaneously earn a high school diploma and a college associate's degree, and give Colorado a better chance of landing federal ‘Race to the Top’ funds.
***
Office of the Governor, June 2, 2009: “Gov. Bill Ritter today signed into law 10 health care and non-profit measures.” These bills pertain to (a) autism spectrum disorders; (b) traumatic brain injury ; (c) Make-a-Wish Foundation; (d) spinal cord injury: (e) medically underserved communities; (f) alcohol and substance abuse prevention in rural communities; (g) access to primary care services for working families in the San Luis Valley; (h) representation from the disability community on all boards that impact people with disabilities; and (i) certified nurses’ aide program; and (j) modernizing the Nurse Practice Act.
***
Office of the Governor, June 3, 2009: “Taking a big step toward modernizing Colorado's State budget, Gov. Bill Ritter today signed a bipartisan bill that begins to
untie a knot of outdated and conflicting fiscal mandates and doubles the State's rainy day reserve fund.”
*** Office of the Governor, June 12, 2009: “Gov. Bill Ritter addressed a gathering of almost 200 education, business, and policy leaders in the State Capitol this morning during a launch event of the
Colorado STEM (Science, Technology, Engineering and Mathematics) Network, a math and science non-profit organization intended to highlight the importance of STEM fields and strengthen STEM education in Colorado. . . . Two years ago, Colorado was one of six States selected to receive a grant from the National Governors Association, the Bill & Melinda Gates Foundation, and the Intel Corporation to create STEM education initiatives in their States. With the help the University of Colorado Denver, Colorado was able to submit a proposal that outlined two chief priorities -- to create a sustainable, influential P-20 Council, and to create a network of ‘grassroots-level’ STEM compacts, or regional organizations.”
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Press Release -- FY 2009-10 State Budget Submission, Office of the Governor, November 2, 2008: http://www.colorado.gov/cs/Satellite?c=Page&cid=1225627001806&pagename=GovRitter%2FGOVRLayout&rendermode=preview Gloomy Economic Forecast for Colorado in 2009, 7News, the Denver Channel, December 8, 2008: http://www.thedenverchannel.com/news/18225949/detail.html Memorandum to Governor Bill Ritter Jr, December 2008 Revenue Forecast, Colorado Office of State Planning and Budgeting, December 19, 2008: http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=idblobtable=MungoBlobs&blobwhere=1231572939688&ssbinary=trueGov. Ritter Continues Budget-Balancing Plan, Office of the Governor, January 27, 2009 -- Click at the end for detailed documents:http://www.colorado.gov/cs/Satellite?c=Page&cid=1233066797188&pagename=GovRitter%2FGOVRLayoutColorado’s Budget Woes Linger, Denver Post, February 17, 2009:http://www.denverpost.com/politics/ci_11719219Letter submitting the Governor’s FY 2008-09 and FY 2009-10 final budget balancing proposal, Office of State Planning and Budgeting, February 23, 2009:
http://www.colorado.gov/cs/Satellite/OSPB/GOVR/1225731668405Colorado’s Economic Recovery and Accountability website, initiated in March 2009:http://www.colorado.gov/recovery*** Also see letters on the uses of ARRA funds from the Office of State Planning and Budget to the Joint Budget Committee:http://www.colorado.gov/cs/Satellite/OSPB/GOVR/1240924661381Colorado Employment at 6.6 Percent in January, Denver Business Journal, March 11, 2009:http://www.bizjournals.com/denver/stories/2009/03/09/daily34.htmlGov. Ritter, Legislators Introduce Colorado ASCENT Bill, Office of the Governor, March 13, 2009:http://www.colorado.gov/cs/Satellite?c=Page&cid=1236948105280&pagename=GovRitter%2FGOVRLayoutMarch 2009 Revenue Forecast, Office of State Planning and Budgeting, March 20, 2009 (and earlier reports):http://www.colorado.gov/cs/Satellite/OSPB/GOVR/1218709343298
Gov. Ritter Hails Recovery Funds for Community Health Centers, Office of the Governor, April 1, 2009:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1238588295955&pagename=OIT-2%2FOIT2Layout
Colorado Legislature Approves State Budget, Avoids Steep College Cuts,
Denver Business Journal, April 23, 2009:
http://www.bizjournals.com/denver/stories/2009/04/20/daily58.html
Gov. Ritter Praises Lawmakers for Leading Colorado Forward Through Tough Economy, Office of the Governor, May 6, 2009 -- Scroll down for the highlights of major legislation and click at the right for fact sheets:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1241613111884&pagename=GovRitter%2FGOVRLayout
Gov. Ritter Enacts Sweeping Education Reforms, Office of the Governor, May 21, 2009:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1242915424907&pagename=GovRitter%2FGOVRLayout
Gov. Ritter Signs Health Care, Non-Profit Bills, Office of the Governor, June 2, 2009:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1243943885724&pagename=GovRitter%2FGOVRLayout
Gov. Ritter Inks Budget Modernization Act of 2009, Office of the Governor, June 3, 2009:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1244045238030&pagename=G
STEM Grant Key Component in Colorado’s Plan for Bold Education Reform, Office of the Governor, June 12, 2009:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1244803449451&pagename=GovRitter%2FGOVRLayout
Connecticut : Dealing With a Growing Deficit Compiled from various sources named in the text and in the links below.
***
Office of the Governor, September 30, 2008: “Governor M. Jodi Rell today announced she is
ordering a second round of State budget cuts, exercising her power under State law to trim expenditures at Executive Branch agencies, boards and commissions to reduce a projected State budget deficit of more than $300 million. The cuts amount to about $35.4 million. In letters to the chairs and ranking members of the Appropriations Committee and the Finance, Revenue and Bonding Committee, Governor Rell said the economic environment has continued to deteriorate since she first trimmed the Fiscal 2009 State budget by about $150 million in June.
***
Office of the Governor, October 21, 2008: “Governor M. Jodi Rell today announced her
plan to eliminate Connecticut’s 2009 fiscal year budget shortfall with a combination of spending cuts, new revenue owed Connecticut by the federal government, a tax amnesty program, the cancellation of the start of new State programs and by continuing to bring efficiencies to State government. The plan requires no new taxes, no employee layoffs and it leaves the state’s $1.4 billion budget reserve fund (Rainy Day Fund) intact. . . . Earlier this year, Governor Rell took a number of steps to rein in State spending and to keep last year’s state budget ‘in the black.’ State agencies were required to cut their gasoline use and ordered to cease all but the most essential spending. The Governor also ordered a hiring freeze and banned out-of-state travel paid for with State funds.. . . . For the current 2009 fiscal year, the Governor has already ordered two rounds of budget cuts – the first, a cut of $150 million and most recently, a cut of $34 million.”
***
Office of the Governor, October 24, 2008: “Governor M. Jodi Rell met Thursday with her top budget officials to begin work on the fiscal year 2010-2011 biennial State budget and said the crafting of the new budget will require a top-to-bottom review of State government, with a focus on core government missions and responsibilities. Governor Rell also said she
will order State of Connecticut government agencies to submit proposals that cut up to 10 percent from their upcoming biennial budgets. . . . The budget meetings will continue for the next two months and the Governor will present her proposed budget after the legislature convenes on January 7, 2009.”
***
Office of the Governor, October 28, 2008: “Governor M. Jodi Rell today announced the she is formally
calling the General Assembly into special session on Monday, November 24, and is including in the scope of the special session not only her plan to eliminate the current $302 million State budget deficit but several proposals that will provide significant financial relief to Connecticut’s hard-pressed cities and towns. . . . In terms of the State, Governor Rell has ordered a hiring freeze, a travel ban, made nearly $180 million in budget rescissions and directed commissioners to cease all non-essential spending. Governor Rell also created a five-step program that includes the support of the State’s community banks, to ensure businesses and residents have access to credit.”
***
Office of the Governor, November 20, 2008: “Governor M. Jodi Rell today said her budget office now
estimates the current State budget deficit at slightly more than $356 million, due in large part to sharp declines in sales taxes and revenue from the oil companies tax. . . . The current estimate of -$356.3 million compares with last month’s estimate of -$107.9 million. The increased deficit reflects a projected decrease in sales tax revenue of $115.6 million, due to slowing consumer activity, and a decrease in oil companies tax revenue of $100 million, due primarily to sharply lower energy prices. Other changes include a projected increase in income tax refunds of $25 million and a projected decrease in investment income of $20 million. Income from the state’s two tribal casinos is also expected to drop by $16.4 million. . . . Since the spring, Governor Rell has taken a number of critical steps to reduce State spending. She instructed commissioners and other agency chiefs to review their expenditures and stop all non-essential spending, and directed them to begin a ban on out-of-state travel by all personnel unless the trip is paid for out of non-state funds. The Governor also ordered two rounds of budget rescissions at many state agencies. The rescissions will reduce General Fund expenditures by a net total of about $180 million. . . . The Governor’s plan to mitigate the current-year shortfall, up for consideration by the Legislature on Monday, relies on a combination of spending cuts, new revenue owed Connecticut by the federal government, a tax amnesty program, the cancellation of the start of new State programs and additional efficiencies in State government. The plan requires no new taxes, no employee layoffs and it leaves the State’s $1.4 billion budget reserve fund – also known as the Rainy Day Fund – alone.”
***
Office of the Governor, December 17, 2008: “Governor M. Jodi Rell today announced her
new plan to eliminate Connecticut’s current budget shortfall by cutting spending, redirecting revenue from special accounts to the General Fund, bringing additional efficiencies to State government and collecting additional revenue owed Connecticut by the federal government. The plan requires no new taxes, no employee layoffs and leaves the State’s $1.4 billion budget reserve fund (Rainy Day Fund) intact. . . . The Governor’s plan calls for further spending cuts, including $7.2 million in a third round of rescissions. Governor Rell has already ordered two rounds of budget cuts – the first a cut of $150 million and, most recently, a cut of $34 million. . . . Governor Rell is calling the General Assembly into special session on Friday, January 2, to enact the plan.”
***
Office of the Governor, January 12, 2009: “With the most recent year-to-date State revenue collections down steeply from last year, Governor M. Jodi Rell today announced
additional measures to reduce government costs during the rest of Fiscal Year 2009, including the cancellation of State contracts for certain goods and services and the elimination of some Deputy Commissioner positions within State government. Governor Rell said that, based on actual collections by the Department of Revenue Services, income tax estimated payments that are due January 15 are currently running 22 percent below the same period last year. Meanwhile, corporation tax estimated payments that were due December 15 fell 30 percent compared to last year and sales tax collections to date are down by 3.5 percent compared to a similar period last fiscal year. . . . Governor Rell announced that a ‘SWAT’ team comprised of staff from the Department of Administrative Services Procurement Division and Office of Policy and Management officials will conduct a review of contracts by State agency, quasi-public agency and higher education constituent units. The goal of this review is to sharply curtail the dollar value of these contracts – in many cases, by terminating them altogether, in other cases by seeking to renegotiate the rates paid by the State or by terminating the existing agreement and rebidding the contract.” (It is reported that the governor will present a budget proposal for the next two years on February 4.)
***
Office of the Governor, January 13, 2009: “Governor M. Jodi Rell today announced that she has
asked agency commissioners and non-union managers to voluntarily take one unpaid day of leave by March 1 as a cost-cutting move, saying she is taking an unpaid day herself today to lead the effort. . . . ‘All anyone has to do is pick up a newspaper or talk to a neighbor – the steady flow of news about layoffs is deeply disturbing,’ Governor Rell said. ‘Aetna just announced that 375 of the 1,000 jobs it plans to cut will come from its Connecticut offices; UST is moving virtually all of its employees out of Stamford. Stanley Works, AT&T, Pratt & Whitney and – sadly – many other blue chip companies, as well as far too many of our small and medium-sized employers, are cutting their work force. I am determined to avoid layoffs if at all possible,’ the Governor said.”
***
Office of the Governor, January 20, 2009: “Governor M. Jodi Rell today announced that her budget office
now estimates the deficit for the current fiscal year at nearly $922 million – even after the latest round of budget cutting – because income tax, business tax and sales tax collections have fallen dramatically below expectations. The most recent deadline for quarterly estimated income tax payments was January 15. Those payments were 20 percent below projections, and if these trends continue income tax revenues for the entire year will likely fall $665 million – nearly two-thirds of a billion dollars -- below projections. The latest deadline for corporation tax estimated payments was December 15, and those payments are trending $100 million below projections. Sales tax collections, meanwhile, are running $50 million behind projections. In all, the Office of Policy and Management – Governor Rell’s budget agency – projects a shortfall for Fiscal Year 2009 of $921.7 million.”
***
Office of the Governor, February 4, 2009: The Governor
submitted her FY 2010-2011 biennium budget to The Legislature, which includes: (a) efforts to reduce spending and not increase or impose additional taxes; (b) steps to downsize State government through agency eliminations and mergers; (c) measures to eliminate waste in State government; . . . (d) programs to help those facing unprecedented hardships such as additional funding for food stamps and the establishment of an employment program; (e) initiatives that further efforts to regional municipal services and cooperation; . . . and (f) new programs that will equip the State’s current and future workforce with the skills and knowledge to prosper for years to come. . . . (Among the many proposals are) mandate relief to hard-pressed cities and towns (including delaying for two years the in-school suspension mandate); . . . consolidating the Department of Higher Education and nine other State boards and commissions by merging their responsibilities into existing departments; . . . . merging the vo-tech high school and community college systems with the State’s Office of Workforce Competitiveness to create the Middle College System -- a system of coordinated academic programs that bridge the gap between high school and higher education, allowing students to earn 60 college credits within five years of starting high school. . . . (In addition) for the major source of State education aid, the Education Cost Sharing (ECS) Program, communities can expect to receive the amount of education funding they receive in 2009.”
***
Record-Journal, Meriden, CT, February 19, 2009: Governor “
Rell delivered her $1.1 billion deficit mitigation plan to State lawmakers Thursday. The plan includes a fourth round of cuts in State agency spending. It also speeds up cost-cutting measures scheduled to take effect in the next fiscal year and increases labor cost savings. There would be no layoffs as a result of the governor's proposal, and she does not include any tax increases. Estimates show that Connecticut is facing a deficit for this fiscal year of between $922 million to $1.3 billion, and Rell's plan falls between those numbers.”
***
Office of the Governor, March 4, 2009: “Governor M. Jodi Rell announced today that she has appointed two top administration officials to help the Legislature’s Appropriations Committee
review hundreds of State budget accounts in an effort to identify millions in possible savings and close the estimated $1 billion budget shortfall for the current fiscal year. A deficit mitigation plan, approved last week by the Legislature, requires the Appropriations Committee to identify by March 25 approximately $220 million in savings from non-appropriated line-item accounts, which total $1.6 billion. Governor Rell and her budget office have expressed real doubt on the availability of the money in many of more than 600 accounts, given that the vast majority of the accounts are either legally restricted or used for normal operating expenses for a number of State programs, such as the unemployment compensation fund, the Connecticut Siting Council, as well as the operating budgets for State universities.”
***
Office of the Governor, March 4, 2009: “Governor M. Jodi Rell today
urged legislative leaders to adopt spending cuts outlined in her deficit mitigation plan as a way of avoiding State employee layoffs and cuts in higher education that will be necessary under the sharply increased rescissions included in the General Assembly’s mitigation plan. Governor Rell’s deficit mitigation plan proposed $6.3 million in additional agency spending reductions – the fourth such round of cuts she has made. However, the plan adopted by the Legislature requires the Governor to make $20 million in unspecified agency budget cuts, an increase of $13.7 million over her proposal. At the same time, lawmakers ignored more than $46 million in other savings that the Governor proposed. . . . ‘At this point in the budget – and at this point in the fiscal year – any meaningful cuts in Personal Services will now necessarily result in layoffs, while further reductions in Other Expenses will result in cuts to higher education,’ the Governor said. ‘There is simply no way around it. The Legislature needs to understand that this is the result of the choices they have made – and that other choices are available.’”
***
Hartford Business Journal, April 6, 2009: “Connecticut’s
unemployment insurance fund will be insolvent by the end of this year, forcing the State to increase taxes on businesses and borrow hundreds of millions of dollars from the federal government to make up for the shortfall, State officials have confirmed. The State is projecting to bring in about $640 million in insurance fund revenue this year, but mounting job losses will force it to pay out over a billion dollars in benefits, said George Wentworth, director of program policy for the state labor department. . . . The State labor department recently announced that 14,300 residents lost their job in February, pushing the State’s unemployment rate to 7.4 percent. . . . Connecticut would keep paying unemployment benefits even when the insurance fund runs out, but it will have to borrow money from the federal Department of Labor to make up for the shortfall.”
***
Office of the Governor, April 20, 2009: “Governor M. Jodi Rell today announced that her budget office – using the most up-to-date numbers on income taxes and other revenues –
now estimates the current year’s budget deficit has increased to about $1.056 billion. In its monthly letter to the State Comptroller, the Governor’s budget office also released new estimates of the deficit for the next two fiscal years, putting the shortfall over the biennium at $7.95 billion. . . . OPM estimated the deficits for the next two fiscal years at $3.972 billion in Fiscal 2010 and $3.981 billion in Fiscal 2011, for a total of $7.953 billion. . . . The revised estimate for the next biennium does not reflect potential revenue from the federal stimulus. Neither the current-year figure – up from an estimate of $667 million last month – nor the estimates for Fiscal 2010 and 2011 reflect potential savings from an agreement with the State Employees Bargaining Agent Coalition (SEBAC). Governor Rell announced today that leaders of the State employees unions have voted in favor of a draft agreement, sending it to rank-and-file members for their consideration. The Fiscal 2009 estimate also does not reflect any potential savings from the Legislature’s review of unappropriated or ‘off-budget’ accounts intended to find as much as $220 million to help reduce the current deficit, or the use of any additional money from the ‘Rainy Day Fund.’”
***
Office of the Governor, May 11, 2009: The Governor issued a directive to agency heads to “
freeze purchasing for the remainder of the fiscal year, except for those goods and services that are absolutely and immediately essential to the agency’s operations.”
***
Office of the Governor, May 14, 2009: In another directive to agency heads, Governor Rell directed that “
effective immediately State agencies are to (a) cease printing all brochures, leaflets, annual reports, and similar communications or informational materials, unless such materials are required to fulfill a federal or State mandate; . . . (b) cease printing all agency business cards and letterhead; and (c) use paperless processes whenever possible. . . . State agencies should electronically publish or use the internet to make information or documents available to clients, customers, the public, and others, to the extent permitted by federal or State law and as reasonable practicable.” NOTE: In a subsequent directive, the Governor asked that “all fleet vehicles be subject to a travel ban for two days per week” (with exceptions that are listed in the directive).
*** Office of the Governor, May 28, 2009: “Governor M. Jodi Rell today announced that in order to help the General Assembly pass a budget on time before the legislative session ends June 3,
she is offering a second budget – one that continues to hold the line on taxes, eliminates many state agencies, consolidates others and provides mandate relief for municipalities, including suspension of binding arbitration for the next two years and preserves municipal aid. . . . Highlights of the Governor’s new proposal: (a) fiscal spending is 1.4 percent below Fiscal 2009 levels; (b) fiscal 2011 spending increases 2 percent; (c) eliminates 10 State offices and 70 boards and commissions; (d) consolidates 10 boards and commissions with other agencies; (e) cuts an additional $650 million over her prior budget in each of the next two fiscal years; (f) borrowing -- notes to be paid off in seven years; (g) securitization of $350 million in last quarter of 2011; (h) introduction of Keno and securitization of those new revenues. . . . Faced with an unprecedented deficit for the fiscal year that ends June 30, the Governor has used her executive authority to make five rounds of rescissions and offered lawmakers four deficit mitigation plans totaling about $1.8 billion. She ahs also worked with State employee unions to secure concessions of $700 million through FY 2011.”
*** Hartford Courant, June 2, 2009: “In the face of a looming shortage of qualified teachers, State lawmakers Tuesday night approved
sweeping changes to the certification process. . . . The measure would make it easier for qualified professionals to make a mid-career shift and enter the teaching ranks. They would still need a teaching certificate but would no longer have to take content-area classes on subjects they already know.
It will also streamline the certification process for teachers and administrators already certified in another State.”
*** Republican American, Waterbury, June 4, 2009: “Frazzled legislators headed home after a sapping session of lawmaking fizzled to an end Wednesday. . . .
There is no budget deal. If nothing else, Republican Gov. M. Jodi Rell and the Democrat-controlled legislature were supposed to adopt a new two-year State budget. Now, they will try to get that job done in special session, and no one knows how long that may take.”
*** Office of the Governor, June 18, 2009: “Governor M. Jodi Rell today announced that
3,460 State employees have already retired or will do so by July 1, exceeding the cost-cutting goal of the Retirement Incentive Program (RIP) she negotiated with state employee unions. With two weeks remaining before the July 1 deadline to apply for the RIP, the number of State employees leaving state service – along with the savings to the state – is likely to increase. The RIP, part of a far-reaching labor agreement Governor Rell negotiated with state employee bargaining units, projected overall cost savings of $700 million if 3,000 State employees took retirement.”
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Governor Rell Orders $35 Million in Additional Rescissions, September 30, 2008:http://www.ct.gov/governorrell/cwp/view.asp?A=3293&Q=424010Governor Rell Announces Deficit Mitigation Plan, Office of the Governor, October 21, 2008: http://www.ct.gov/GovernorRell/cwp/view.asp?A=3293&Q=425462 Governor Rell: Budget Work Begins With “Top-to-Bottom” Review of State Government – State Agencies Required to Submit 10 Percent Cuts, Office of the Governor, October 24, 2008: http://www.ct.gov/GovernorRell/cwp/view.asp?A=3293&Q=425832 Governor Rell: Special Session to Include Relief for Communities as Well as Deficit Reduction, Office of the Governor, October 28, 2008: http://www.ct.gov/GovernorRell/cwp/view.asp?A=3293&Q=425958Governor Rell: Deficit Estimates Climb to $356 Million, Office of the Governor, November 20, 2008http://www.ct.gov/governorrell/cwp/view.asp?A=3293&Q=428510 Governor Rell Announces 2nd Deficit Mitigation Plan and Calls Special Session for January 2, Office of the Governor, December 17, 2008: http://www.ct.gov/governorrell/cwp/view.asp?A=3293&Q=430044 Governor Rell, Citing Diminished Revenue, Orders New Cost Cutting Measures, Office of the Governor, January 12, 2009: http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=431654 Governor Rell Asks Commissioners, Managers To Take Unpaid Leave Day As Cost-Cutting Measure, Office of the Governor, January 13, 2009: http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=431802Governor Rell: Current Year Deficit Skyrockets to Nearly $922 Million, Office of the Governor, January 20, 2009:http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=432234Governor’s Budget Summary, FY 2010-FY 2011 Biennium, Office of the Governor, February 4, 2009:http://www.ct.gov/governorrell/cwp/view.asp?a=1317&Q=433326*** To see Department of Education budget figures:http://www.ct.gov/opm/lib/opm/budget/2010_2011_biennial_budget/summary/b-8_educationshort.pdf*** To see full details of the Governor’s FY 2010-2011 biennium budget:
http://www.ct.gov/governorrell/cwp/view.asp?a=1317&Q=433326Rell Looks to Tackle Budget Deficit Again, Record-Journal, Meriden, CT, February 19, 2009:http://www.myrecordjournal.com/site/tab1.cfm?newsid=20265755&BRD=2755&PAG=461&dept_id=592708&rfi=6*** Details of the third Deficit Mitigation Plan for Fiscal 2009 are available at:http://www.ct.gov/governorrell/lib/governorrell/defmitplan.pdfGovernor Rell Appoints Administration to Help Identify Millions in Savings for FY09, Office of the Governor, March 4, 2009:http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=435294Gov. Rell to Legislative Leaders: Layoffs, Higher Ed Cuts Inevitable Unless Other Savings Adopted, Office of the Governor, March 4, 2009:http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=435302Connecticut Recovery Initiative -- Website on Connecticut’s projects supported by federal stimulus funds, initiated on March 6, 2009:http://www.ct.gov/recovery/site/default.aspUnemployment Fund to Run Dry, Hartford Business Journal, April 6, 2009:http://www.hartfordbusiness.com/news8470.htmlGovernor Rell: Deficit Estimate Tops $1 Billion for 09, New Estimates Put 2010-11 Shortfall at $7.95 Billion, Office of the Governor, April 20, 2009:
http://www.ct.gov/GovernorRell/cwp/view.asp?A=3675&Q=438816
Executive Directive #1 to Agency Heads: Essential Agency Spending Only, Office of the Governor, May 11, 2009:
http://www.ct.gov/governorrell/lib/governorrell/may12toagencyheads.pdf
Executive Directive #3 to Agency Heads: Continued Efforts to Curtail Agency Spending, Office of the Governor, May 14, 2009:
http://www.ct.gov/governorrell/lib/governorrell/executive_directive_(may_14).pdf
Governor Rell Delivers Second “No-Tax” Budget of Legislative Session, Office of the Governor, May 28, 2009:
http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=440800
Connecticut Lawmakers OK Bill to Ease the Path to Become e a Teacher, Hartford Courant, June 2, 2009:
http://www.courant.com/news/education/hc-teacher-certification-
Legislative Session Ends in Business as Usual, Republican American, Waterbury, June 4, 2009:
http://www.rep-am.com/articles/2009/06/04/news/417570.txt
Governor Rell’s Retirement Incentive Plan Saving More Money Than Expected, Office of the Governor, June 18, 2009:
http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=442012
Delaware: The Largest Fiscal Challenge in the State’s HistoryCompiled from various sources named in the text and in the links below.
***
Delaware Department of Education, December 3, 2008: “Delaware should move quickly to update its system of public education funding so schools can better meet the learning needs of their students, according to the Report on Education Funding in Delaware recently presented to Governor Ruth Ann Minner. Prepared by the Leadership for Educational Achievement in Delaware (LEAD) Committee at the Governor’s request, the study is a major step toward realizing the Vision 2015 goal of world-class schools for every Delaware student. . . . The report found that
current policies prevent State education dollars from being generated fairly, distributed equitably and used cost effectively to serve the diverse needs of students. For example, Delaware is one of only 11 States that have not adopted a foundation funding formula which provides a base amount for each student and then adds funds for each student who requires more support. Instead, Delaware’s 59-year-old system distributes most State funds to districts and schools in the form of units -- commitments to pay salaries for specific numbers of teachers and other estimated costs, based on enrollment counts in student categories such as elementary, middle and high school and ‘mild,’ ‘moderate’ and ‘severe’ special education. Aside from a modest supplementary allocation, Delaware’s current system does not provide additional funds for the highest-need students, including those who live in poverty, English Language Learner students and gifted and talented students. . . . The LEAD Committee also found wide disparities in per pupil funding from district to district. In addition, the committee pointed out that the assessments currently used to determine local property taxes are outdated and no longer reflect actual property values. . . . Based on its research and deliberations, the LEAD Committee identified 12 recommendations to strengthen Delaware’s education funding system.” The recommendations are shown in the news release:
*
** Office of the Governor, January 21, 2009: In his Inaugural Address, Governor Markell said, among other things, that “from today to the end of this fiscal year, in June, we must find a way to cut our spending by 100 million dollars. Simultaneously, we must create and pass a budget for the next fiscal year that eliminates another 600 million dollars - nearly 20 percent of our entire state budget. . . . Beginning this very afternoon, we will launch a statewide performance audit to uncover and eliminate unnecessary expenditures throughout this government. . . . However, given the magnitude of our financial crisis, cutting waste will not be enough. . . . That means cutting back on many government functions and services -- even some that we all agree are needed. . . .
The basis for that economy is education, and we must make Delaware's education system the best in the world. We currently rank near the top in the nation for education spending per student. It's time we rank in the top for education results for students. We will spend smarter. We will demand accountability from top to bottom. We will retain, recruit, and train the best teachers in America -- and we will reward them for carrying out the most valuable job in Delaware.”
*** Office of the Governor, January 22, 2009: “Governor Jack Markell on Thursday launched his
‘Honest Assessment’ of State government. The assessment is a series of initiatives that will examine how the government spends taxpayer dollars, how to effectively measure agencies’ performance, how to identify innovation and how to best meet the significant challenges facing Delaware. . . . The Delaware Government Performance Review is the first initiative of the “Honest Assessment.” . . . Business leaders from around the region will join more than a dozen top-notch public servants who will identify what works best in government, what could be made to work better and how to spend taxpayer dollars as effectively and efficiently as possible. The Government Performance Review
will examine every department and division to identify their goals and missions, interview staff to help unleash new innovations, identify and analyze practices for possible improvement and focus on how existing policies could be made more cost-effective.”
*** Office of the Governor, January 23, 2009: Governor Markell issued a statement in response to unemployment data released by the State Department of Labor. “The data shows that Delaware’s
unemployment rate rose to 6.2 percent in December. The total number of unemployed Delawareans who are actively seeking work climbed to 27,665. These numbers are expected to grow in coming months as individuals laid off at the end of 2008 begin to collect unemployment benefits.”
***
Office of the Governor, February 5, 2009: “Governor Jack Markell delivered his ‘Reality Check on the State Budget Challenge’ briefing to school district superintendents and the directors of charter schools Thursday, encouraging the education leaders to pursue budget cuts aimed at areas outside of classroom instruction. . . . The presentation makes clear that in total dollars, the
current $606 million shortfall is the largest fiscal challenge Delaware has had to meet in its history. The presentation also lays out the magnitude of difficult decisions the Governor and legislators will have to make as they work to balance they budget.”
*** Office of the Governor, February 12, 2009: The Governor “announced the
first in a series of changes in State spending policies to cut the costs of government, rein in State spending and eliminate millions from the $109.2 million shortfall he inherited in the operating budget for fiscal year 2009. Thursday’s reductions are expected to get the State $28.7 million closer to solving this year’s shortfall and will launch policy changes that will limit state spending on key costs moving forward into next fiscal year and its historic $606 million deficit. . . . Markell and the Office of Management and Budget found an additional $27.4 million in State agency budgets that can be returned to the General Fund. Those savings, along with the savings from the new State spending policies announced Thursday, will reduce the fiscal 2009 shortfall by $28.7 million. . . . Markell emphasized that the cuts announced today are only the beginning.”
*** Office of the Governor, March 19, 2009: In his address on the budget (Solutions for the Budget Shortfall), the Governor said, among other things, that “The revenues that pay for the services provided by Delaware’s State government have been hit hard – just when those services are needed most. The result is a budget shortfall larger than anyone could have imagined -- $750M. And it may get bigger. Our solution to this historic challenge is a balanced plan, . . . Our plan relies mostly on cost cutting, but it does raise revenues. . . .
Our solution to the $750M shortfall would: (a) reduce spending by $331M; (b) reallocate special funds by $40M; (c) leverage $155M in federal stimulus funding; (d) raise $55M by re-authorizing a sports lottery and getting a fair deal for Delawareans; (e) increase our revenues by $166M; and (f) raise fees and fines by $12M. . . . I have appointed Lt. Governor Denn to be our State’s ‘Stimulus Czar’ and launched the Governor’s Stimulus Solutions Group to ensure we can make the most of the stimulus.
*** Office of the Governor, April 6, 2009: “Last week, U.S. Secretary of Education announced the availability of
new funds for Delaware for education of the disadvantaged (Title 1, Part A) and education of persons between age 3 and 21 with disabilities (IDEA Part B). These funds, provided as part of the American Recovery and Reinvestment Act, represent a dramatic but short-term increase in the funds that Delaware has for the education of disadvantaged students and students with disabilities.”
*** Office of the Governor, April 8, 2009: “Governor Markell and Lieutenant Governor Matthew Denn joined Senate Education Committee Chair David Sokola and House Education Committee Chair Terry Schooley “today to unveil
legislation designed to dramatically improve Delaware’s public schools and qualify Delaware for federal dollars that President Obama’s administration will be awarding to States with forward-looking public school systems. . . . The bills, seek to: (a) eliminate the Delaware Student Testing Program and replace it with a testing program that measures student progress over the course of a school year; (b) pay the State’s highest-performing teachers a comparatively higher salary, and those high-performing teachers in high-risk schools at the State’s highest salary level. (This portion of the plan would not go into effect until the State’s current budget situation improves, and might begin on a pilot basis in individual school districts.); and (c) provide local schools and districts with substantially more discretion to make financial and other decisions that make sense for the kids they serve, while simultaneously holding them more accountable for spending their funds responsibly.”
*** Office of the Governor, April 10, 2009: “Following swift action by the Senate and House this week, Gov. Jack Markell on Friday
signed legislation into law that reduces the shortfall the State is facing for the current fiscal year.
Despite the $12.9 million of savings in the legislation, Delaware is still facing a $30.8 million shortfall in the current year and a historic $750 million deficit for fiscal 2010. Both figures could increase if revenue estimates worsen over the next two months. . . . Senate Bill 69 identifies savings from several areas, including unspent money allocated for capital projects, interest from special fund accounts, funding appropriated for minor capital improvement projects at various State agencies, and surplus money in the E-911 account.
‘The next round of cuts will be harder because we may have to take money from projects that might be ready to start,’ said Sen. Robert Venables, D-Laurel, co-chair of the Joint Bond Bill Committee.”
*** Office of the Governor, April 20, 2009: “Gov. Jack Markell on Monday signed House Bill 102 into law, which makes important changes to the State’s education system that will enable Delaware to
qualify for the prestigious Teach for America program. . . . The Teach for America program will help place dedicated teachers in the classrooms throughout Delaware that need help the most.”
*** Office of the Governor, April 28, 2009: “In his first Joint Address to the Delaware General Assembly, Governor Jack Markell today
unveiled an agenda focused on solving the State’s historic shortfall and getting Delawareans back to work to ensure the State’s long-term prosperity. . . . The Governor used the speech to outline answers to several critical issues facing the State, including: a stronger economy (Markell unveiled his Creation of Real Economic/CORE) Prosperity Agenda) . . . and getting the State’s fiscal house in order. The first step is to balance the State’s budget by June 30th, including the passage of the Sports Lottery package, which would bring in $55M in new revenue towards the state’s $780M shortfall. (Other components include) (a) making government more efficient, effective and accountable; (b) prioritizing community and home-based care for Delaware’s growing number of senior citizens instead of making institutional care the first choice; (c) cutting administrative costs in education, consolidating administrative services across districts to move dollars from the back room to the classroom; and (d) reforming Delaware’s education system to ensure students learn to the best of their ability.”
*** Bloomberg, May 14, 2009: “Delaware became the f
irst State east of the Mississippi River to legalize sports betting in a move designed to cut the State’s budget deficit. Governor Jack Markell signed the bill approving the change today. . . . Delaware expects to cut its $778 million budget deficit by more than $50 million through sports betting and an increase in the State’s share of slot-machine money.”
*** Office of the Governor, May 15, 2009: Gov. Jack Markell released a statement “in response to preliminary estimates from the Delaware Economic and Financial Advisory Council (DEFAC) that show the State’s budget
shortfall for fiscal 09 has increased to $45 million and the shortfall for fiscal 2010 has climbed to $800 million: ‘DEFAC’s estimates make our historic challenge even more daunting. My administration will spend the next six weeks working with the General Assembly to responsibly address the $800 million shortfall.”
*** Delaware Department of Labor, May 22, 2009: “In April 2009, seasonally adjusted nonfarm employment was 415,600, down from 416,300 in March 2009. . . . Since April 2008, Delaware’s
total nonfarm jobs have decreased by a net loss of -21,000, a fall of -4.8%. Nationally, the loss in jobs over the past 12 months was -3.8%.”
*** Office of the Governor, June 11, 2009: “Gov. Jack Markell announced Thursday that his
administration and State legislators have bridged the $26.1 million shortfall in the fiscal 2009 operating budget. The shortfall has been closed through a combination of roughly $19 million in savings the administration’s Office of Management and Budget has identified in the existing budget and $6.5 million in previously appropriated capital funds that are being reverted to the General Fund by legislation the Governor signed into law Thursday night. . . . Markell said, ‘My team and I will be working closely with the Joint Finance Committee and the rest of the General Assembly to make the tough choices required to solve the historic $800 million shortfall in our fiscal 2010 operating budget by June 30.”
*** Dover Post, June 12, 2009: The General Assembly’s Joint Finance Committee “
voted to endorse a 2.5% pay cut for all State employees. . . . The 2.5% salary reduction would apply to all State employees except teachers, who would see their pay cut by 1.5% and lose two paid professional development days. . . . Savings from the pay cut would total approximately $28.8 million (in the FY2010 budget). Another $7.9 million in savings would come from the elimination of 485 vacant jobs — a motion unanimously approved by the committee. . . . The committee’s 2.5% cut leaves considerable work to be done to balance the budget, but if the plan represents a compromise it could be a good thing.”
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LEAD Committee Recommends Update to Delaware’s System of Raising and Distributing Public Education Funds, Delaware Department of Education, December 3, 2008:http://www.doe.k12.de.us/news/2008/1202.shtmlInaugural Address, Office of the Governor, January 21, 2009:http://governor.delaware.gov/speeches/inauguration.shtmlGovernor Markell Launches ‘Honest Assessment’ of State Spending and Practice, Office of the Governor, January 22, 2009:http://governor.delaware.gov/news/2009/01january/20090122-honest-assessment.shtmlGovernor Markell Begins Term Facing Historic Unemployment, Office of the Governor, January 23, 2009:http://governor.delaware.gov/news/2009/01january/20090123-historic-unemployment.shtml#TopOfPageGovernor Markell Briefs School Chiefs on Delaware’s Historic Budget Challenge, Office of the Governor, February 5, 2009:http://governor.delaware.gov/news/2009/02february/20090205-briefs-school-chiefs.shtml#TopOfPageMarkell Slashes $28.7 Million From Fiscal 2009 Shortfall, Office of the Governor, February 12, 2009:http://governor.delaware.gov/news/2009/02february/20090212-spending-cuts.shtml#TopOfPageSolutions for the Budget Shortfall, Governor’s Address on the Budget, March 19, 2009:http://governor.delaware.gov/2009budgetaddress.shtml*** Also see the accompanying PowerPoint presentation:http://governor.delaware.gov/2009_BudgetSolutions.pdf*** Details about the Governor’s recommended FY 2010 budget are available at:http://budget.delaware.gov/fy2010/budget2010.shtmlLetter to the Superintendent of Public Instruction (about ARRA funds), Office of the Governor, April 6, 2009:http://www.recovery.delaware.gov/documents/markell-education-funds.pdf*** Delaware’s website on the use of ARRA funds is at:http://www.recovery.delaware.gov/Markell, Denn Unveil Education Reform Legislation, Office of the Governor, April 8, 2009:http://governor.delaware.gov/news/2009/04april/120090408-educationreform.shtml#P0_0*** Also see the Governor’s statement on March 4 when he first outlined his reform plan for briefings with citizens:http://governor.delaware.gov/news/2009/03march/20090304-education-reform.shtml#TopOfPageMarkell, Legislators Identify Nearly $13 Million in Additional Savings (in the current budget), Office of the Governor, April 10, 2009:http://governor.delaware.gov/news/2009/04april/20090410-savings.shtml#P0_0*** Details about the FY 2009 final Operating Budget and Capital Budget are shown at:http://budget.delaware.gov/fy2009/budget2009.shtmlMarkell Signs Bill to Help Attract More Quality Teachers to Delaware’s Schools, Office of the Governor, April 20, 2009:http://www.doe.k12.de.us/news/2009/0420.shtmlLet's Get to Work: An Agenda for Economic Recovery, Government Reform, Improvements in Education Excellence, and a Balanced Budget (State of Delaware Address), Office of the Governor, April 28, 2009:http://governor.delaware.gov/speeches/address-joint-session-2009.shtml*** News release:http://governor.delaware.gov/news/2009/04april/20090428-jointaddress.shtmlDelaware Legalizes Sports Betting to Plug Deficit, Bloomberg, May 14, 2009:http://www.bloomberg.com/apps/news?pid=20601079&sid=a1C9SFSNT53kMarkell Responds to Delaware’s Budget Challenge Reaching $800 Million, Office of the Governor, May 15, 2009:http://governor.delaware.gov/news/2009/05may/20090515-budgetchallenge.shtml#P0_0*** Revenue forecasts from the Delaware Economic and Financial Advisory Council are posted monthly at:http://finance.delaware.gov/publications/DEFAC.shtmlMonthly Labor Review for April 2009, Delaware Department of Labor, May 22, 2009:http://www.delawareworks.com/oolmi/Information/PDFPerview.aspx?FormattedDocumentId=1074Markell Signs Legislation Closing Fiscal 2009 Budget Gap, Office of the Governor, June 11, 2009:http://governor.delaware.gov/news/2009/06june/20090611-budgetgap.shtml#TopOfPage*** The final FY 2009 Operating Budget and Capital Budget are available at:http://budget.delaware.gov/fy2009/budget2009.shtmlBudget Committee Opens Meetings, OKs 2.5% Pay Cut for State Employees, Dover Post, June 12, 2009:http://www.doverpost.com/homepage/x702339911District of Columbia: Shrinking Revenue Estimates Compiled from various sources named in the text and in the links below.
***
Office of the Chief Financial Officer, District of Columbia, March 20, 2008: “On March 20, 2008, the Mayor proposed a balanced budget for Fiscal Year 2009 with a Local Fund growth rate less than 1 percent, marking the
most austere budget proposal in years. That proposal included the elimination of approximately 650 vacant FTE positions across the government, along with significant reductions in the Financing Title. The budget proposal also included a measured reduction in commercial real property tax rates from the 2008 levels.”
***
Council of the District of Columbia, November 10, 2008: “The Council of the District of Columbia today unanimously
passed legislation to close a $131 million revenue shortfall by making prudent, but fair changes to the FY 2009 budget. Chairman Gray said that the plan preserves the most critical District programs and the social services safety net for the most vulnerable residents. The Council’s strategy was not only to make the necessary program cuts to fill the predicted deficit, but to also freeze $46 million in spending in other selected programs until the February revenue forecast gives a better picture of the depth of recession and its impact on the District. . . . The Mayor’s current fiscal year budget includes $220 million in new spending for programs and services. The bulk of the Council actions today will come from targeted reductions or freezes to this new spending.”
***
Office of the Chief Financial Officer, District of Columbia, December 19, 2008: In a letter to Mayor Adrian M. Fenty and City Council Chair Vincent C. Gray, the District’s Chief Financial Officer states that, “the
FY 2009 revenue is now estimated to be $5,305.1 million -- $127.1 million less than the estimate in September. For FY 2010, total non-dedicated Local Fund revenues are estimated to be $5,375.9 million, which is $303.8 million less than the estimate that was certified in September.”
***
Washington Post, February 10, 2009: “D.C. Schools Chancellor Michelle A. Rhee said yesterday (February 9) that the
deteriorating economy will force the District to cut the wage proposal in its contract offer to the Washington Teachers' Union. . . . The financial package Rhee offered in July called for a minimum increase of 28 percent over five years, depending on which salary ‘tier’ teachers selected. But with the District expected to collect at least $456 million less in tax revenue during the 2010 fiscal year, she said the situation has changed. Rhee said she would soon submit a revised final offer.”
*** Office of the Mayor, March 20, 2009: “Mayor Adrian M. Fenty today
unveiled the Administration’s Fiscal Year 2010 budget proposal, entitled ‘Meeting the Challenge.’ The $10.3 billion spending plan, which includes $5.4 billion in local funds, is the District’s 14th consecutive balanced budget. . . . The proposed budget includes a total of $186 million in State fiscal stabilization funds available through the Recovery Act. . . . . In EDUCATION, the budget (a) expands the Comprehensive Staffing Model to additional schools, with funding for social workers, psychologists, literacy and math coaches, art, music, and PE; and includes (b) $558 million in formula funds for education at DC Public Schools; (c) additional 254 pre-K slots; (d) $236 million in FY 2010 capital funding for OPEFM school modernization—100 percent funded with GO borrowing (instead of Pay-Go); (e) $331 million in formula funds for education at DC Public Charter Schools; (f) increased charter schools budget by 8.8 percent from FY 2009; (g) additional $66 million in Facilities Allotment funding for charters; (h) increased charter schools budget by 8.8 percent from FY 2009; (i) additional stimulus funding to support school improvements and educational services; (j) $18.8 million in Title I funds for schools with high proportions of disadvantaged students; (k) $8.2 million in IDEA funding for special education programs; (l) $1.1 million for Head Start and Early Start; (m) $1.3 million in Child Care Development Block Grants; (n) $1.6 million to fund enhanced use of technology in public schools; (o) $1.8 million in additional library resources to open four new branch libraries at Anacostia, Benning, Watha T. Daniel, and Tenley; and (p) a University of the District of Columbia subsidy at $62 million — no change from FY 2009
.”
(NOTE: The DC Council may make changes in the proposed budget before it is sent to Congress for final approval in June.)
*** Office of the Chief Financial Officer, March 20, 2009: In transmitting the Mayor’s fiscal year 2010 proposed budget and financial plan, the Deputy Chief Financial Officer stated: “The
current economic forecast assumes that DC economic conditions will continue to deteriorate. . . . The unemployment rate is projected to rise from its current 9.3 percent to annual rate of 11.5 percent in 2010. . . . In February 2009, total baseline local revenue net of dedicated taxes was estimated to fall from the actual FY 2008 level of $5.33 billion to $5.17 billion in FY 2009 and $5.03 billion in FY 2010. It will not be until FY 2013 that revenue will exceed FY 2008 levels.”
*** Washington Post, March 21, 2009: “D.C. Mayor Adrian M. Fenty yesterday
proposed eliminating 1,632 government jobs and raising fees on parking meters, emergency phone service and business licensing, calling the moves necessary to meet spending restraints in the sluggish economy. . . . (The Mayor) laid out a plan to lay off 776 employees and further reduce the workforce through attrition and elimination of vacant jobs. The cuts are spread throughout city agencies, including 250 positions in the public schools, 240 in the mental health department, 138 in public works and 118 in the finance office. . . . Most of the jobs eliminated in the school system will be teacher aides and support staff. Total public school spending would drop 1.2 percent under the proposed budget, from $773 million to $763 million. Of that amount, $603 million will go directly to schools, a proposed 2.6 percent increase over this year's amount. The District's public charter schools, which saw a 17 percent enrollment bump this year, would receive almost $400 million in the new budget, an 8.8 percent increase.”
*** Office of the Mayor, March 23, 2009: Mayor Fenty testified before the DC Council about his FY 2010 budget and financial plan. Among other things, the Mayor said that “this
budget proposal includes $763 million in funding for District of Columbia Public Schools (DCPS). DCPS continues to direct resources where they will have the greatest impact on student achievement by increasing the funds going directly to the schools and classrooms. Of the total DCPS budget, $603 million will go directly to support schools, an increase from the FY 2009 number of $587 million.
The FY 2010 budget will maintain the Comprehensive Staffing Model at 27 schools and expand it to 2 more schools, with funding for social workers, psychologists, literacy and math coaches and art, music and physical education teachers.
My administration is making steady progress towards its goal of providing universal pre-Kindergarten for all students; FY2010 offers an increase of 254 openings for pre-K placements and 103 openings for preschools.
Chancellor Michelle Rhee will continue her work to equip DCPS with the necessary tools and processes to deliver a quality education to every student. The budget will include $8.2 million in IDEA funding for special education programs. The Office of Special Education will expand clinical supervision for related service providers. Eight new System-wide Application Models and 2 new full service schools will be added to provide wrap-around services to improve student behavior and promote inclusion.”
*** Office of the DC Chief Financial Officer, May 2009: In its report for March 2009, this office showed the following on
cash collections for FY 2009 (October-March) -- Individual income tax collections were down 9.1% from one year ago. All deed tax collections were down 51.4% from one year ago. Total collections before earmarking were down 9.4% from one year ago.” Many other details on economic indicators are shown.
***
Office of the Mayor, May 12, 2009: “Today Mayor Fenty, joined by U.S. Secretary of Education Arne Duncan and District of Columbia Public Schools Chancellor Michelle Rhee announced the District government is
set to receive $109.5 million for education in President Obama’s 2010 budget proposal that was sent to Congress last week. . . . Initiatives funded by the federal monies are: (a) expansion of Pre-K: expand Pre-K by 2,000 students over the next five years; (b) development of Theme Schools: schools with particular content area focus -- arts, science and technology and world language and culture; (c) Partnership Schools: work with nonprofit school management organizations to turn around chronically low-performing schools; (d) Innovative Compensation: system-wide incentive pay initiatives for teachers who help their students realize significant academic gains; (e) special education: initiative to build inclusive and integrated special education programs; (f) data driven instruction: District of Columbia Benchmark System (DC BAS) provides school leaders and teachers with the data and training to measure students’ knowledge and skills; (g) Revolving Direct Loan Fund: provide public charter schools with low-interest loans to assist them with facilities acquisition and renovation; (h) public facility grant support: cover the costs of renovating public facilities leased to public charter schools; (i) Facilities Technical Assistance Program (F-TAP): provide public charter schools with support in the areas of new facility project planning and real estate finance; (j) City Build Initiative: a joint neighborhood revitalization and education initiative that aims to build strong communities by providing quality school choices to strategic neighborhoods.”
***
Washington Post, May 13, 2009: “The D.C. Council
approved a $5.4 billion budget yesterday (May 12) that cuts hundreds of city jobs and aims to raise millions in new revenue by issuing more than 200,000 additional parking tickets in the next fiscal year. . . . (The budget includes) the Council's decision to cut, at least temporarily, the school system's budget by $27.5 million. Chairman Vincent D. Gray said the Council was putting the money in escrow because members are skeptical of the system's projections that enrollment will increase by 3,300 pupils next year. . . . The Council said the money would be restored once an enrollment audit is completed in the fall. But Schools Chancellor Michelle A. Rhee fired off a letter to Gray yesterday warning that the decision will ‘negatively impact school opening in August 2009 because 338 teacher positions will have to be cut. ‘. . . Council members promised to review their decision at their next meeting, scheduled for later this month.” (NOTE: This budget pertains to the District’s local share of the budget for the coming fiscal year.. The remainder of the $10.3 billion spending plan is to come from federal appropriations to the District of Columbia.)
*** Washington Post, June 20, 2009: In the District of Columbia, the “
jobless rate went from 9.9 percent in April to 10.7 percent in May. The D.C. rate surpasses the national average, 9.4 percent. . . . Job losses have occurred across the board in white- and blue-collar professions, but they have disproportionately affected African Americans rather than whites, and holders of only high school diplomas more so than college graduates. . . . The higher-paid, higher-skill jobs being created in the federal government and contracting firms more often go to people residing outside the city. About two-thirds of people working in the District live in Maryland or Virginia, D.C. officials said.”
_________________________________
Mayor Fenty Releases Fiscal Year 2009 Budget Plan, Office of the Chief Financial Officer, March 20, 2008: http://newsroom.dc.gov/show.aspx/agency/cfo/section/2/release/13084/year/2008 Chairman Gray Leads Passage of Prudent but Fair Gap-Closing Plan, Press Release, Council of the District of Columbia, November 10, 2008: http://www.dccouncil.us/Gray/PDF/Budget%20Revision%20Passes%2011-10-08.pdf Letter from CFO to Mayor and Council Chair Regarding Revised FY 2009-2013 Revenue Estimates, December 19, 2008: http://newsroom.dc.gov/show.aspx/agency/cfo/section/2/release/15761/year/2008/month/12Rhee Says Economy Forces D.C. to Cut Wage Proposals, Washington Post, February 10, 2009:http://www.washingtonpost.com/wp-dyn/content/article/2009/02/09/AR2009020901782.htmlMayor Fenty Releases Fiscal Year 2010 Budget Plan, Office of the Mayor, March 20, 2009:http://www.dc.gov/mayor/news/release.asp?id=1509&mon=200903FY 2010 Proposed Budget and Financial Plan -- Meeting the Challenge, Office of the Chief Financial Officer, March 20, 2009 -- Includes details. http://www.cfo.dc.gov/cfo/cwp/view,a,1321,q,589949,cfoNav,|33210|.aspBudget Targets 1,632 D.C. Jobs, Washington Post, March 21, 2009:http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032001024.htmlMayor Fenty Testifies on FY 2010 Budget and Financial Plan, Office of the Mayor, March 23, 2009:http://www.dc.gov/mayor/news/release.asp?id=1511&mon=200903D.C. Economic Indicators, May 2009 -- Data as of March 2009, Office of the DC Chief Financial Officer, May 2009:http://cfo.dc.gov/cfo/cwp/view,a,1324,q,590985,cfoNav,%7C33210%7C.aspDistrict to Receive Over $109M in Federal Funds for Education, Office of the Mayor, May 12, 2009:http://www.dc.gov/mayor/news/release.asp?id=1572&mon=200905Revised Budget Adopted in D.C, Washington Post, May 13, 2009:http://www.washingtonpost.com/wp-dyn/content/article/2009/05/12/AR2009051203466.html?hpid=moreheadlinesIn D.C., More Jobs and More Jobless, Washington Post, June 20, 2009:http://www.washingtonpost.com/wp-dyn/content/article/2009/06/19/AR2009061901600.htmlFlorida: Among the States Facing the Deepest Deficits Compiled from several sources named in the text and in the links below.
***
Office of the Governor, June 11, 2008: “Governor Charlie Crist today
signed the $66 billion 2008-09 budget, funding essential State services at meaningful levels, protecting the most vulnerable, keeping citizens and visitors safe, and providing for continued learning gains of Florida’s students. . . . Services to Florida’s most vulnerable citizens will be sustained by using a limited amount of State reserves. Funding is provided for programs that benefit the children of Florida, including enrolling an additional 38,000 children in KidCare, enhancing child protection by increasing the number of adoptions and creation of children’s zones to provide a comprehensive prevention strategy to children living in high-risk neighborhoods. Funding is provided to maintain and repair existing senior centers and county health departments. Citizens can rest assured that prisoners will continue to serve a minimum of 85 percent of their prison sentences as funding is provided for an additional 10,000 prison beds.” Budget highlights are included in this statement.
***
Miami Herald, November 21, 2008: “Florida's budget
gap could widen by up to $1.5 billion as State economists meet Friday morning (November 21) to revise the State's revenue forecast for the first time since the economic crisis took on global dimensions this fall. The previous budget forecasts, which predated the global recession, were predicated on a slight growth this year in Florida's population and an uptick in home sales, said Amy Baker, a State economist and director of the Legislature's Office of Economic and Demographic Research. At a briefing before House Democrats Wednesday, Baker warned: ‘Those projections won't be happening.’ . . . The Legislature's analysts predict that their previous tax collection estimates are off by $1.5 billion. Gov. Charlie Crist's economists project a shortfall of about $1.2 billion. At worst, the shortfalls would bring the current year budget deficit to $2.3 billion -- all but guaranteeing a special lawmaking session to cut the budget even more or plug the hole with dwindling savings money because Florida's Constitution forbids budget deficits. Even adding back Crist's plan to cut agency spending by about 4 percent, the deficit will still stand at $2 billion to $1.3 billion. The reason for the wildly different numbers -- economists don't agree right now on just how much can realistically be cut from the budget with the agency budget holdbacks. The previous shortfall projected in Florida's current $66 billion budget already left the State in the company of California, Arizona and Nevada as the States facing the deepest deficits.”
***
Miami Herald, December 16, 2008: “Florida's legislative leaders announced Monday that they
will convene an extraordinary lawmaking session Jan. 5 to close the State's ever-widening $2.3 billion budget hole. . . . Florida's budget currently stands at $66.3 billion -- $7.4 billion less than just two years ago. Next year, the outlook is even more bleak. Based on forecasts of tax collections, which have precipitously declined, State economists estimate next year's budget hole could be about $5.8 billion -- and that would be after this January's cuts. . . . Schools could face a huge cut next year because property values are swiftly declining. If this year's property-tax rate were held the same, schools statewide would see their spending reduced by $780 million.”
***
Office of the Governor, January 27, 2009: “Governor Charlie Crist today
signed the revised 2008-09 budget passed during a special legislative session earlier this month. Governor Crist also exercised his authority to veto line-item budget items, restoring $90.9 million in general revenue funding to preserve Florida’s investment in public safety; K-12 classrooms and teachers; critical services to vulnerable children, elders, and persons with disabilities” and others.
***
Office of the Governor, February 20, 2009: “Governor Charlie Crist today
outlined his proposed $66.5 billion (2009-2010) budget and a number of legislative priorities for the upcoming Legislative Session. His proposed measures will strengthen Florida’s economic foundation on multiple fronts.. . . . EDUCATION: To continue Florida’s education gains, Governor Crist recommended $31.2 billion in funding for all phases of education, including almost $1.8 billion of federal stimulus funds. PER-STUDENT FUNDING: Governor Crist’s education recommendations include a 2.67-percent increase in per-student funding over the current year. This increase provides a $183 increase per student, for an average of $7,044 per student for the 2.6 million K-12 students enrolled during the 2009-10 school year. HIGHER EDUCATION: . . . (a) $3.6 billion for State universities and medical schools, an additional $191.2 million, or a 5.6 percent increase; (b) $1.8 billion for community colleges and their baccalaureate degree programs, an additional $146.8 million, or an 8.8 percent increase; (c) $564 million for postsecondary workforce education within school districts, an additional $2.5 million, or a 4.6 percent increase. The Governor also proposes a five-percent base undergraduate tuition increase, in addition to measures that will give the 11 state universities flexibility to charge a differential tuition that will generate revenue to enhance undergraduate education and need-based aid.”
***
Office of the Governor, March 3, 2009: In his State of the State address, Governor Crist “called on the Legislature to adopt his proposed $66.5-billion budget. . . . Governor Crist’s proposed 2009-10 budget includes $4.7 billion from the American Recovery and Reinvestment Act of 2009. Over the years, Florida is expected to receive $5.3 billion for health and human services programs such as Medicaid, food stamps and cash assistance; $1.4 billion for highway and transportation projects; $148 million for programs to promote energy efficiency; and $162 million for workforce employment and training. According to information released by the White House, the economic stimulus funding will create or retain 206,000 jobs statewide. . . . (The Governor also) urged the Legislature to ensure taxpayers can track K-12 education funding online and require school districts to spend a minimum of 70 percent of operating dollars directly in the classroom. . . . The Governor also encouraged legislators to give Florida’s 11 State universities the resources they need to compete with universities nationwide. . . . Governor Crist has
proposed a five percent base undergraduate tuition increase, in addition to measures that will give the 11 State universities flexibility to charge a differential tuition that will generate revenue to enhance undergraduate education and need-based aid. Currently, five State universities have this flexibility, as previously authorized by the Legislature.”
***
Office of Economic & Demographic Research, Florida Legislature, March 13, 2009: The Revenue Estimating Conference for the General Summary Fund reported that “since the November General Revenue Estimating Conference, weakness in the State, national, and world economies has deepened. In response, the Revenue Estimating Conference has
reduced its estimate of General Revenue collections for FY 2008-09 by $1.1 billion or 4.9% below the estimate for November. For FY 2009-2010, expected revenues were reduced by $2.3 billion or 10.6% from the earlier forecast.” These data will be used to modify the budget for the current year and to draft the FY 2009-2010 budget.
***
Miami Herald, April 11, 2009: “A massive
$4 billion in federal stimulus money is about to be pumped into Florida. . . . Without the infusion of federal cash, the State Legislature would have had to make some politically unpopular cuts to the current budget, which is about $700 million in the hole. . . . . Not all the cash flows into the State's budget. At least $572 million will be sent directly to local schools to help disadvantaged students. The biggest chunk of cash for the State budget -- $1.8 billion in Medicaid money. . . . Even with all the federal stimulus money, lawmakers expect to finish the budget year with just $200 million in savings. So all current budget '’holdbacks'’ on State spending -- requests to agencies and local governments to not spend budgeted money -- will remain in effect for now.” (NOTE: Florida’s total stimulus package over three budget years is about $13.4 billion.)
***
Miami Herald, May 9, 2009: “On May 8, “
Lawmakers balanced the budget with an infusion of $5 billion in federal stimulus money and $2.2 billion that was cobbled together through an expansive nickel-and-dime effort to raise scores of fees and taxes. Lawmakers swept $600 million from specialized spending accounts known as trust funds and slashed another $1 billion in State spending -- making next year's budget $3 billion smaller than the current year's, which itself is fortified with $4 billion in stimulus money. . . . While the $6,873 per-student spending for next year is about $28 higher than the current budget, it only looks like an increase because of the cut the governor imposed last June, reducing current-year spending from $6,997.” (NOTE: The total budget is $66.5 billion.)
*** ABC Action News, Tampa, May 27, 2009: “Governor Charlie Crist has
signed a $66.5 billion budget for 2009-2010. Crist also vetoed a 2 percent pay cut for about 28,000 State workers from the budget Wednesday (May 27). With State revenues continuing to fall, it's taken a combination of spending cuts, federal stimulus money, and about $2 billion in tax and fee increases to balance the $66.5 billion budget. Besides more than $5 billion in stimulus money, the biggest new revenue source is a $1-a-pack increase in the cigarette tax.
*** St. Petersburg Times, June 5, 2009: “A price tag is now emerging for what last year's collapse of investment giant
Lehman Brothers could cost the State of Florida -- more than $1 billion. . . . More than $440 million disappeared from the pension fund that pays benefits for some 1 million retirees and public employees. Counties, cities and school districts face a loss of more than $300 million for roads, sewers and schools. The State has $290 million less to pay for everything from hurricane claims to health care, community colleges and care for infants with disabilities”
_________________________________
Governor Crist Signs $66 Billion Balanced Budget, Vetoes $251 Million, Office of the Governor, June 11, 2008: http://www.flgov.com/release/10050 Economists: Florida’s Budget Deficit Could Hit $2.3 Billion, Miami-Herald, November 21, 2008: http://www.miamiherald.com/news/legislature/story/781675.html Special Session Set for Budget Crisis, Miami Herald, December 16, 2008: http://www.miamiherald.com/news/southflorida/story/814522.html
Memorandum: Revised 2008-09 Budget, Governor’s Press Office, January 27, 2009:
http://www.flgov.com/release/10485
*** A link to the 2008-2009 appropriation is available at:
http://dms.myflorida.com/agency_administration/planning_and_budget/2008_2009_appropriation
Governor Crist Unveils 2009-10 Budget, Legislative Priorities Aimed at Strengthening Florida’s Economy, Office of the Governor, February 20, 2009:
http://www.flgov.com/release/10550
*** For the proposed FY 2009-10 recommended budget overview, full text, highlights, and details by agency, see the bottom of the page at:
http://www.ThePeoplesBudget.state.fl.us/
Governor Crist’s State of the State Address Calls on Legislature to Seize Opportunity to Secure Florida’s Future, Office of the Governor, March 3, 2009:
http://www.flgov.com/release/10565
General Economic Forecast, Revenue Estimating Conference, Office of Economic & Demographic Research, Florida Legislature, March 13, 2009:
http://edr.state.fl.us/conferences/generalrevenue/grsummary.pdf
Federal Stimulus Cash Pumped Through Florida’s Budget, Miami Herald, April 11, 2009:
http://www.miamiherald.com/news/florida/story/994836.html
Florida’s website on uses of ARRA stimulus funds is at:
http://flarecovery.com/
Florida Legislature Finds a Way To Balance Budget, Miami Herald, May 9, 2009:
http://www.miamiherald.com/news/southflorida/story/1039512.html
*** Also see the Governor’s statement on the 2009-2010 budget, including the ARRA amounts it includes -- plus summaries of major components of the legislation:
http://www.flgov.com/release/10722
Crist Signs $66.5 Billion Florida Budget, ABC Action News, Tampa, May 27, 2009:
http://www.abcactionnews.com:80/news/local/story/Crist-signs-66-5-billion-Florida-budget/adYmn2w7vkiNbTgPyLUlBQ.cspx?rss=794
*** Also see the Governor’s statement and budget highlights, May 27:
http://www.flgov.com/release/10781
Florida Stands to Lose $1 Billion Because of Lehman Brothers’ Bankruptcy, St. Petersburg Times, June 5, 2009:
http://www.tampabay.com/news/politics/article1007445.ece
Georgia: Shortfalls Accumulate, Class Size Waivers Are Approved
Compiled from various sources named in the text and in the links below.
***
Georgia Budget and Policy Institute, Atlanta, June 10, 2008: “The
FY 2008 Amended Budget and the FY 2009 Budget included $1.8 billion in additional spending and $834 million in spending cuts, for a total spending increase of $901.9 million. . . . The Georgia economy is in the midst of a slowdown. According to the Georgia State University Economic Forecasting Center May forecast, Georgia is expected to lose 7,000 jobs in 2008, with only moderate job growth projected in 2009. . . . The Department of Revenue (DOR) collects 95 percent of all General Revenue Funds and reports those collections on a monthly basis. For the first 11 months of FY 2008, revenues collected by DOR (not including motor fuels) have declined by 0.4 percent, as compared to the first 11 months of FY 2007. If revenues remain unchanged through June, the State budget will be facing a shortfall of between $500 and $600 million. . . . . The Revenue Shortfall Reserve (RSR) contains over $1.5 billion. . . . Through wise fiscal management over the past four years that resulted in growing the reserve funds, the Governor is in a position to manage these economically driven revenue shortfalls without the need to resort to cutting vital government services.”
***
Georgia Budget and Policy Institute, Atlanta, August 11, 2008: On August 1st the Governor announced that the State faces a potential budget deficit of $1.6 billion in FY 2009. The Governor has
ordered State agencies to immediately reduce their budgets by 6 percent. The only exceptions are the Medicaid and PeachCare programs, which will face a 5 percent reduction, and the funding for the Board of Education, which will face a 2 percent reduction. In addition, the Governor announced a delay and possible elimination of the distribution of the Homeowners Tax Relief Grant and the State employee salary increase scheduled to go into effect January 1, 2009. Savings from these actions total $1.2 billion. An additional $400 million will come from State Health Benefit Plan reserves, the suspension of OPEB contributions, use of tobacco fund reserves, and unexpended funds appropriated in FY 2008 for reservoirs. The Governor’s deficit reduction plan does not include use of the Revenue Shortfall Reserve (RSR) at this time. . . . The Office of Planning and Budget has informed State agencies that their budget allotments (distribution to State agencies of appropriated funds every six weeks) are being immediately reduced by 6 percent. In addition the State has suspended or eliminated the hiring of new and replacement positions; all out-of-state and non-essential travel; all purchases of motor vehicles; and the purchase of supplies, materials, equipment, and printing. The Governor also asked State agencies to develop proposals for the amended FY 2009 and the FY 2010 budgets that will include options for cuts of 6 percent, 8 percent, and 10 percent of their budgets.”
***
Georgia Budget and Policy Institute, Atlanta, September 2008: The State agency
FY 2009 amended budget proposals and FY 2010 budget proposals were submitted to the Governor’s Office of Planning and Budget (OPB) on September 2nd. . . . The Governor’s initial deficit reduction plan calls for the 6 percent state agency budget cuts targets to total $715 million. Four State agencies (Board of Education, Board of Regents, Department of Human Resources, and Department of Community Health) account for 82 percent of all State agency general fund appropriations. Thus, those reductions to agencies will account for the majority of cuts. In total, the Board of Education, Board of Regents, Department of Human Resources, and the Department of Community Health deficit reduction proposals as submitted to OPB total $527 million – almost 75 percent of total proposed cuts. . . . General Fund revenues would need to increase by $1.48 billion, or 8.4 percent, to meet the FY 2009 revenue estimate. The Governor has estimated that general fund revenues will decline by 0.7 percent in the current fiscal year (FY 2009), resulting in a $1.6 billion shortfall. The Georgia State University Economic Forecasting Center in their August economic forecast projected that revenues will decline by 4.0 percent in FY 2009, resulting in a $2.2 billion shortfall. For the first two months of FY 2009, revenues have declined 6.8 percent -- 6.6 percent in July and 7.0 percent in August.”
***
Atlanta Journal-Constitution. October 1, 2008: “After Department of Revenue reports showed
tax collections down 7 percent in August, House and Senate leaders began to believe that the shortfall will exceed the $1.6 billion that Governor Sonny Perdue projected in early August. Perdue ordered State agencies to cut spending 6 percent. That may not be enough. . . . Bigger budget cuts could mean a host of things, from less money for local high schools and health care programs to shorter hours at State parks and fewer degree and certificate programs at technical colleges. If school funding is cut significantly, it also might mean higher property taxes next year to make up the difference.”
***
The Telegraph (Macon.com), October 17, 2008: Georgia’s Truth in Class Size law, “passed in 2006, requires schools to limit kindergarten classes to no more than 20 students, first through third grades to no more than 21 students and fourth through eighth grades to 28 students. Smaller classrooms provide better learning environments, State officials argued. But now, in light of State budget cuts and more financially struggling school systems, the State is backing off the mandate for the next two school years. . . . Governor Perdue wrote school superintendents in a mid-October letter.
‘I have requested that the State Board of Education grant all reasonable class-size waiver requests during the 2008-09 and 2009-10 school years.’"
***
Atlanta Journal-Constitution, November 19, 2008: A move (by Governor Sonny Perdue) to eliminate automatic cost-of-living increases (COLAs) for retired educators was quickly shot down Wednesday, November 18, by the Teacher Retirement System Board. . . . Under the proposal, the teacher retirement board would have voted each year on whether to fund COLAs. Since 1969, the twice-annual 1.5 percent increases have been automatic. . . . The
teacher and state retirement systems have lost $11 billion in value since July 1 because of the stock market collapse.”
***
Georgia Budget and Policy Institute, December 10, 2008: “In July the Governor projected a 1 percent revenue decline in FY 2009 ($1.6 billion budget shortfall). Although revenue collections for the first five months of the fiscal year have shown a 1.3 percent decline, due to the further weakening of the economy expected throughout calendar year 2009, the Georgia State University Economic Forecasting Center
projects a 6 percent revenue decline in the current fiscal year. A 6 percent revenue decline would result in a FY 2009 budget shortfall of $2.5 billion. The Economic Forecasting Center also projects a 1 percent revenue decline in FY 2010. Meaning, Georgia potentially faces an additional FY 2010 budget shortfall of as much as $1 billion. State spending is not a driving factor in these projected deficits, considering that Georgia ranks 49th in State spending per capita. The current budget shortfall is due to the combination of a historically weak economy and a shrinking tax base.”
***
Atlanta Journal-Constitution, January 9, 2009: “Georgia officials
plan to cut $525 million from reserves in the health insurance plan for schoolteachers and State employees to alleviate some of the severe budget crunch. . . . The Department of Community Health, which runs the employee health plan, on Thursday approved a lowering of the health benefits rates charged to State agencies, local school districts and the state Department of Education. . . . Bert Brantley, a spokesman for Gov. Sonny Perdue, said the $525 million ‘is money we are going to be able to use to soften the spending cuts.’ He noted that the money would only provide a one-time cushion for this fiscal year, which ends June 30. It won’t be available to help school systems and agencies next year, when the State’s fiscal situation may be even worse. State employees -- and schoolteachers will see no change in the premiums or other costs now charged for health benefits.”
***
Office of the Governor, January 14, 2009: “Governor Perdue used his State of the State address to
formally submit his Amended FY 2009 and FY 2010 budget recommendations to the General Assembly. Governor Perdue’s recommended Amended 2009 budget totals $19.2 billion and the 2010 budget stands at $20.2 billion. . . . In these budgets, Governor Perdue recommended using the maximum amount available for appropriation from the reserves, appropriating $187 million for the education midyear adjustment, $50 million in 2009, and $408 million in 2010. In 2009, a number of one-time strategies (unavailable in 2010) will be implemented to balance the budget. Therefore, Governor Perdue recommended the largest portion of available reserve funds be committed to the 2010 budget. . . . For the 2009 session, Governor Perdue is proposing merit pay legislation that will award teachers who show evidence that their classroom instruction leads to increased student achievement. Governor Perdue is also proposing differentiated pay for math and science teachers. Additional legislation will ensure every student in Georgia has the benefit of responsible leadership at the school system level. This legislation will clearly define what citizens expect from Georgia’s school board members, and it will give the State the ability to replace board members who aren’t serving in the best interests of their students. . . . Governor Perdue also outlined a proposal to restructure the Department of Human Resources.”
***
Macon Telegraph, January 25, 2009: This article
clarifies details of the Governor’s amended 2009 budget and proposed 2010 budget. “Easily the largest section of the State budget at more than $8 billion, K-12 education funding was cut by a smaller percentage than other departments. But the cuts still will have a significant effect. Class size waivers have been approved, allowing elementary school classes to move from 21 students per teacher to 23. Graduation coaches, a highlight of Perdue’s education platform, and the $100 teacher gift cards are still funded, but they’re essentially optional now. Instead of having their own line items, funding for those programs was moved into the state’s Quality Basic Education, or QBE, funding formula. Austerity cuts to that formula — basically money the formula says should go to school districts but that the state holds back — remain in both budgets. And they’ve gotten worse: The $50 million the Legislature replaced during the last session of the General Assembly is gone again and an additional 2 percent, or $135.7 million, was lopped off for this year. For 2010, funding for academic coaches to work with teachers is gone. Funding for school nurses is gone. And 10 percent salary bumps for teachers with national board certifications are gone.”
***
Atlanta Journal-Constitution, March 3, 2009: “Gov. Sonny Perdue
plans to use about $1.1 billion in federal stimulus funding to avoid what one lawmaker described as potentially cataclysmic spending cuts in the upcoming year. . . . However, even with the stimulus money in the budget for fiscal 2010, which begins July 1, the governor made it clear the continuing recession will bring more pain. Under his latest proposal, planned Medicaid reimbursements for hospitals, doctors and other providers will be cut, State employees will have to pay higher health insurance premiums, and agencies will have to cut back another $69 million. That’s on top of the 10 percent-plus spending cuts most State agencies already are making this year. . . . His plan also could avoid widespread layoffs among the State’s 100,000 employees. . . . Because of the continued flagging of tax collections, Perdue reduced his estimate of how much State money will be available next year by $1.6 billion.”
***
Atlanta Journal-Constitution, March 6, 2009: “State
tax collections plummeted nearly 35 percent in February as the recession deepened, re-enforcing Gov. Sonny Perdue’s decision to seek more spending cuts in State government. Collections dropped about $336 million from February 2008, the Georgia Department of Revenue reported Friday (March 6). . For the first eight months of the fiscal year, collections have declined 7.3 percent, or $835 million.”
***
Atlanta Journal-Constitution, March 11, 2009: “The Georgia House of Representatives and Senate gave overwhelming
final approval Tuesday to a slimmed-down $18.9 billion midyear budget that includes money to pay for homeowners’ tax relief grants. Lawmakers approved about $2 billion in spending cuts from the budget for the rest of fiscal 2009, which runs through June 30. A downturn in tax collections during the recession forced the cuts. State agencies already have been trimming costs and, for many, budgets are down 10 percent or more this year. . . . Lawmakers included $145 million in federal stimulus money to mitigate cuts to school funding, although Perdue had said that money would be used in fiscal 2010, which begins July 1.” A subsequent article from this source on March 14 said that the Governor signed the $18.9 billion midyear budget on March 13.
***
The Forest Blade, Swainsboro, March 16, 2009: This article reviews budget actions leading up to the March amended FY 2009 budget and adds that “the
budget maintains critical services in public safety, healthcare, and education, and includes the pay raises for teachers that were granted at the beginning of this school year. The budget also maintains Georgia’s strong infrastructure in education, transportation, and economic development and takes advantage of the State’s AAA bond rating to save the State $10.5 million through lower construction costs.”
***
The Telegraph/Macon.com, April 4, 2009: “Georgia
House and Senate leaders reached a deal on the State’s fiscal 2010 budget Friday evening (April 3). . . . Teacher furloughs, once seen as a potential way to balance the budget, have been avoided for now. State employees won’t pay more for their health insurance under this budget, though Senate Appropriations Chairman Jack Hill said Gov. Sonny Perdue still could change that. State leaders found a way to fully fund Medicaid and still avoid slicing payments to hospitals and doctors that are part of the state-funded and federally funded health-care program. But they did that by cutting other State departments and by counting on even more federal stimulus money than before. The fiscal 2010 budget totals nearly $18.6 billion and depends on $1.4 billion in federal stimulus funding. That includes an extra $90 million from stimulus dollars that had initially been socked away for the fiscal 2011 budget year. . . . House Minority Leader DuBose Porter said the 2010 budget ‘amounts to one of the largest property tax increases in history’ because it doesn’t include funding for the homeowner’s tax relief grant. That’s a program, until it was changed this year, that sunk more than $400 million into local government budgets so they could give homeowners a tax break. Now that the State can’t afford the program, Republican leaders said local governments will have to cut their own budgets to avoid raising taxes.”
***
The Telegraph/Macon.com, April 10, 2009: “ According to the Department of Revenue, “
State tax collections were down in March by 14.5 percent, $167 million, when compared to last year. . . . Even though the State projected revenue was expected to be off by 6.8 percent, it’s running at 8 percent according to the Georgia Budget and Policy Institute (GBPI). ‘If this decline maintains through the end of the year (April through June), the fiscal year 2009 revenue shortfall will be at least $225 million,’ the GBPI explained.”
***
Georgia Budget and Policy Institute, April 15, 2009: “The recently approved FY 2010 budget closed a $3.3 billion budget deficit, which resulted from revenue shortfalls, by using $1.35 billion in American Recovery and Reinvestment Act funds, almost $500 million in various reserve funds, and cutting approximately $1.5 billion from State agencies. Even with projected revenue growth of approximately 5 percent in FY 2011 and 6 percent in FY 2012 (as projected in the governor’s FY 2010 budget report),
Georgia will face an FY 2011 budget deficit of $823 million and an FY 2012 budget deficit of $1.94 billion.” This report includes the rationales for these projections.
***
Office of the Governor, April 20, 2009: “Governor Sonny Perdue today announced the final
recommendations of the ‘Tough Choices or Tough Times’ working group (which) was tasked with investigating innovative ways to create long-term, comprehensive education reform to make Georgia more globally competitive.” The recommendations are summarized in this press release and more information is available at the website of the Governor’s Office of Student Achievement.
***
WCTV News, Tallahassee-Thomasville-Valdosta, April 22, 2009: Governor Perdue “
signed legislation Wednesday that boosts salaries
for the in-demand educators. . . . The new law would allow new secondary school teachers with
proper math or science certification to start at the salary of a
fifth year teacher.”
***
Office of the Governor, May 7, 2009: “Governor Sonny Perdue announced today that the State of Georgia successfully
sold $314,530,000 in general obligation bonds to fund new schools, public safety projects, hospital improvements and other crucial infrastructure projects throughout the State. The State was able to lock in a rate of 1.54 percent -– the lowest rate in State history –- for five-year bonds and 3.8 percent for the 20-year bonds -- the second lowest rate for the State. . . . In addition to the bond sale for new capital projects, the State was able to refinance outstanding debt at lower rates, netting savings of $32.6 million. These funds will be used to pay off bonds maturing on July 1, which will free up funds budgeted for that purpose to meet other needs in the FY 2010 budget.”
***
Georgia Department of Revenue, May 11, 2009: “Governor Sonny Perdue announced that
net revenue collections for the month of April 2009 (FY09) totaled $1,399,047,000 compared to $1,761,180,000 for April 2008 (FY08), a decrease of $362,133,000 or 20.6 percent. The percentage decrease year-to-date for FY09 compared to FY08 is 9.5 percent.”
***
Office of the Governor, May 13, 2009: “Governor Sonny Perdue today announced that
House Bill 119, the State’s FY 2010 budget, has been signed into law. The FY10 budget year begins July 1, 2009. . . . The $18.6 billion FY10 budget is $2.5 billion less than the original FY 09 budget passed during the 2008 session of the Georgia General Assembly. Governor Perdue began reducing agency spending in the FY09 budget last summer, and submitted significant budget cuts in both the Amended FY09 and FY10 budgets to the legislature in January. The Governor revised the revenue estimate during the session, accounting for further reductions in tax collections and the availability of stimulus funding in certain State programs. . . . Governor Perdue also issued three line-item vetoes.”
*** NBC News, Augusta, May 28, 2009: “In a letter to top State lawmakers on Thursday, Gov. Sonny
Perdue says
State agencies will lose 25 percent of their funding
next month as Georgia continues to grapple with plummeting tax
collections (for the fiscal year that ends June 30). . . . Education won't be affected by the cuts. The State will draw down some federal stimulus money
originally budgeted for 2011.”
*** Atlanta Journal-Constitution, May 31, 2009: “A fund designed to help poor school districts provide an education comparable to what’s available in wealthier systems was slashed $112 million this year by Georgia lawmakers looking for ways to balance an unsteady state budget. The
more than 20 percent reduction in so-called ‘equalization’ funding for the fiscal year that starts July 1 is just the latest blow to poor school systems already slashing staff and salaries, crowding classrooms and killing extracurricular programs. . . . The equalization cuts, which were approved in April with little notice, come as some districts are considering restarting a legal fight over what they see as an inadequate school funding system that leaves children behind in poor and rural areas of Georgia.
*** Atlanta Journal-Constitution, June 5, 2009: “Governor Perdue had cut the judiciary’s June budget by 25 percent because otherwise the State would fail to meet its constitutional obligation to end the 2009 fiscal year with a balanced budget.
The State Superior Court judges had threatened to sue the governor because they contended he was trampling the State constitution by withholding about $2 million in funding to a co-equal branch of government . . . (In the compromise) the governor would withdraw his demand the courts cut spending by 25 percent; State judges would then voluntarily reduce their spending by 25 percent by not paying monthly bills and deferring certain expenses until July when state fiscal year 2010 begins.”
*** Office of the Governor, June 5, 2009: “Governor Sonny Perdue announced today that net
revenue collections for the month of May 2009 (FY 09) totaled $1,262,136,000 compared to $1,473,892,000 for May 2008 (FY 08), a decrease of $211,756,000 or 14.4 percent.”
_________________________________
FY 2008 Amended Budget and FY 2009 Budget as Passed: Special Report, Georgia Budget and Policy Institute, June 10, 2008 – Scroll down to June 10, 2008: http://www.gbpi.org/ Deficit Reduction Step Two: Bringing Other Voices Into the Planning Process, Georgia Budget and Policy Institute, August 11, 2008 – Scroll down to August 11, 2008: http://www.gbpi.org/ Deficit Reduction Step Three: State Agency Budget Proposals, Georgia Budget and Policy Institute, September 2008 – Scroll down to September 2008: http://www.gbpi.org/ Georgia’s Budget Shortfall Could Top $2 Billion, Atlanta Journal-Constitution, October 1, 2008: http://www.ajc.com/metro/content/metro/stories/2008/10/01/ 
