2004/05 May Revise Budget Analysis

From the the California School Board Association

May 15,2004

$2 billion "rebasing" of Proposition 98.

Full funding for growth and cost-of-living adjustment (COLA), including providing additional funding for the increase in the COLA to 2.41% (from 1.84%). Also, growth for both 2003-04 and 2004-05 has declined from the January proposal to 0.75% (from 1.23%) for 2003-04 and to 0.95% (from 1.02%).

$270 million for deficit reduction.

The May Revision also reports an increase in the Proposition 98 guarantee for both 2003-04 and 2004-05. Per the agreement, the $275.2 million increase in 2004-05 was used to:

Additionally, the May Revision included the governor's proposal from his January budget to consolidate 22 categorical programs totaling $2.1 billion into school district revenue limits. CSBA has strong concerns about this proposal and is working on an alternative proposal that would consolidate categorical programs into block grants.

For special education, the May Revision provides $31 million, in addition to $69 million in IDEA funds, to provide mental health services for children with exceptional needs. The education community, including CSBA, has raised concerns about this issue, which would shift responsibility for providing these services to education agencies and has been actively engaged in negotiations. Senate Bill 1895, Burton, D-San Francisco, will likely be the vehicle to address the issue.

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Last modified: May 17, 2004

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