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LAO says Federal Stimilus package more than offsets state cuts

Original post made by parent, Another Pleasanton neighborhood, on May 25, 2009

From LAO report on May Revise:

In program terms (excluding deferrals and funding swaps), the May Revision reduces K–12 education by $2.8 billion and CCC by $820 million over the 2008–09 and 2009–10 period. These program reductions would be mitigated by the federal economic stimulus funding available to California. For K–12 education, California will receive approximately $6.3 billion in federal stimulus funding over this period. As a result, compared to the February funding level, K–12 funding, on average, would increase by about $600 per pupil.

Also, because of ARRA, if the state's revenue situation were to further deteriorate and the Proposition 98 minimum guarantee were to fall, however, the state could be constrained in its ability to further reduce K-14 spending.

As posted on the LAO website, "The Legislative Analyst's Office (LAO) is a nonpartisan "

Comments (8)

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Posted by Stacey
a resident of Amberwood/Wood Meadows
on May 25, 2009 at 9:00 pm

Stacey is a registered user.

I think ARRA requires the State to fund education at 2006 levels at minimum and no less.

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Posted by Pete
a resident of Del Prado
on May 25, 2009 at 9:07 pm

More taxpayers money!!!!

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Posted by The March Report?
a resident of Another Pleasanton neighborhood
on May 25, 2009 at 10:25 pm

I think you're talking about this March 10 LAO report which was written before California realized it had a fresh new $21 billion dollar problem:

Web Link

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Posted by Sandy
a resident of Mohr Park
on May 25, 2009 at 10:34 pm

Here is the HTML link to the LAO commentary on the May Revise:

Web Link

There is additional information beyond the quote provided above, though. Picking up where that quote left off...

"As a result, compared to the February funding level, K–12 funding, on average, would increase by about $600 per pupil. Compared to the earlier September 2008–09 Budget Act level, however, per pupil K–12 funding would fall by about $250, or roughly 3 percent. The programmatic impact experienced by a particular district would depend on the amount of federal stimulus funding it receives. As some stimulus funding (such as Title I funding) is not distributed to every district, programmatic effects will vary across districts."

I do not believe that Pleasanton is eligible to receive Title I funding.

I'm not sure what else is in the LAO report that is relevant. It is loooong. A lot to digest. Not reducible to a paragraph or a sound bite?

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Posted by Carl
a resident of Country Fair
on May 26, 2009 at 8:01 am

Sandy - Does PUSD have Title 1 expenses?

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Posted by parent
a resident of Another Pleasanton neighborhood
on May 26, 2009 at 12:09 pm

March Report, this LAO report is for May with comments in there about what the failed propositions mean to the budget.

Title 1 is insignificant to our district and we do not receive any stimulus money for it, but is was so small that not having it in the first place did not affect us. Very soon we should see how much we will be receiving for categorical programs from the stimulus funding. My guess is the state will do away with backfilling the categorical programs and just give more funding for general (like they did already) and they will take the strings off the categorical funds. This is talk in the LAO report and other state reports that the State legislatures will most likely take away the categorical restrictions and give general money to the districts so each district can decide to fund what is important to them instead of keeping programs that might not be that successful but there is money for it.

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Posted by Suzie
a resident of Valley View Elementary School
on May 26, 2009 at 5:55 pm

Don't tell Valley View they don't have any title 1 expenses! All the Ruby Hills money cannot offset the families that have great need at that school but they do help a lot.

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Posted by parent
a resident of Another Pleasanton neighborhood
on May 27, 2009 at 3:54 pm

Valley View's Title 1 needs are still insignificant compared to schools outside the Pleasanton District.

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