Estimate of State General Fund Revenue and Operating Deficit
Thank you for your continuing support of the Coalition for Adequate School Housing (CASH). One of our goals is to provide you with accurate budget and education policy information throughout this pandemic.
On May 7th, Governor Newsom, through the Department of Finance (DOF), released his estimate of State General Fund revenues for the remainder of this fiscal year 2019-2020, and for the budget year 2020-2021. These revenue estimates indicate going from a greater than $5 billion operating surplus in February 2020, to an operating deficit of slightly more than $53 billion dollars. DOF estimates that this will result in an $18.3 billion reduction in the kindergarten through grade 14 Proposition 98 minimum guarantee. Approximately $17.5 billion of this reduction will be attributable to kindergarten through grade 12 and $1.8 billion attributed to community colleges.
The May Revision is expected to be released on May 14th. In that document, Governor Newsom will outline his proposals for how the state will address this deficit. CASH will provide an update promptly after the May Revision is released.
CASH Priorities and Advocacy
- CASH is advocating for protection of the Routine Restricted Maintenance Account (RRMA) funding as a guarantee that schools will have funds available to ensure that schools and classrooms are clean and safe when they reopen in the Fall and protection of existing surplus property rules.
- CASH is advocating as well for an expedited sale and apportionment of Proposition 51 authorized bond funds to assist school districts in moving their projects forward at this time of both low interest costs for new local bond issuance and a better construction cost environment.
- CASH is working with key state agencies to help school districts prepare and plan for potential modification and acquisition of facilities, as needed to meet social distancing requirements.
- CASH will continue our weekly webinars and monthly web-shops to provide you with the latest information to assist you in opening schools and knowing how to use and access funds to address the costs of dealing with COVID-19.
CASH is Here to Be a Resource for You
CASH appreciates everything you do to ensure that students and educators have access to clean, safe, quality school facilities. We are committed to providing you with the information and support you need to meet that goal.
While district operational budgets will be under pressure, there are opportunities to ensure that needed construction, renovation, repair and maintenance can be accomplished to the benefit of our students, families, schools and communities.
We look forward to continuing working with you.
Thank you for your support.
Julie Arthur, CASH Chair
Palm Springs USD
Jeff Becker, CASH Vice Chair
Office of the Fresno Co. Supt. of Schools
On behalf of the CASH Board of Directors