Alta Loma Educators Association

I know many of you are reading news reports or hearing from your local school districts about how state revenues are coming in lower than expected and if that will "trigger" additional state budget cuts. Since early August, we have all witnessed the extreme volatility of the stock market. It is normal to be anxious about how this will affect our lives, the California economy and other essential services. So I wanted to provide you with some additional background information on the state budget bill and how the triggers were written into law.

In short, AB114 - the education budget trailer bill - attempts to stabilize school funding for 2011-12 and stop the hemorrhaging of state budget cuts. However, the approved state budget also "triggers" budget cuts if projected revenues don't materialize.

When the state budget was passed in June, it was built on the projection that tax revenues would be $4 billion greater than those contained in the Governor's May Revision. At that time, revenues were already ahead of projections by $1.3 billion. On August 9, State Controller John Chiang released his monthly report covering California's cash balance, receipts and disbursements in July, showing revenues were down $538.8 million.

WE MUST REMEMBER THAT THE TRIGGERS ARE TIERED AND REDUCTIONS ARE BARGAINED.

If revenues are $500 million below projections nothing will happen

If revenues are more than $500 million but less than $2 billion below projections nothing will happen to K-12 education funding.

Any cuts to public education are proportional. If revenues are more than $2 billion below projections, any changes will be determined by how much revenues fall below the projections.

Any reductions in the length of the school year must be bargained locally.

Alea has already negotiated possible furlough days based on a proportional cut to ADA funding. This agreement was ratified last school year. Each furlough day would amount to a cut of $100/ADA. Thus is the cuts were $210/ADA we would have two furlough days in the spring of this year.