Tag Archives: Proposition 98

C.A.S.H. June Facility Planners Update

06/01/15

The May Revision and State Budget Activities
The Governor released his May Revision budget update on Thursday, May 14, 2015, and the
Legislature is currently reviewing, reconciling, and finalizing budget actions in order to
meet the constitutional deadline to pass a budget by June 15. The Governor estimates an
additional $6.7 billion in revenues above the January proposal across three fiscal years
(2013-14, 2014-15, and 2015-16), $5.5 billion of which are proposed to go to K-12 and
community colleges under Proposition 98. The Legislative Analyst’s Office (LAO)
estimates revenues approximately $3 billion above the Governor, who is known for making
very conservative estimates in order to maintain a fiscally prudent approach and minimize
new spending. Continue reading →

Governor Releases May Revision Budget, Is Silent on the Future of State Facilities Funding

05/14/15

Today the Governor released the May Revision budget update.  His budget estimates an additional $6.7 billion in revenues above the January proposal, $5.5 billion of which will go to K-12 and community colleges under Proposition 98.  This increases the Proposition 98 minimum guarantee by $241 million in 2013-14, $3.1 billion in 2014-15, and $2.7 billion in 2015-16, for revised minimum guarantee levels of $58.9 billion, $66.3 billion, and $68.4 billion respectively.  The Proposition 98 maintenance factor is reduced to $722 million.  Continue reading →

Bond Ratings vs Reserve Cap

04/20/15

A school district recently received the following: S&P specifically pointed to the state’s actions in setting the reserve cap trigger as a potential credit risk in two areas of the report.  This gives a real-life example of how the reserve caps are seen as a negative with the rating agencies and how that can result in higher borrowing costs. Continue reading →

Legislative Analyst’s Office/California’s State Budget

November 20, 2013

Today the Legislative Analyst’s Office released the five-year revenue and expenditure estimates for California’s State Budget. This is the most optimistic projection since 2007-08. We hope that it will not suffer the same recession battered fate as the 2007-08 projection.

The top line is State General Fund revenue growing by $27.1 billion between now and 2019-20 (even after the end of the Proposition 30 sales and income tax increases). Of this, the 2013-14 revenues are expected to be $4.7 billion above the Governor’s Budget projection, while 2014-15 will be $5.8 billion greater than 2013-14. Continue reading →