K thru 12 Education
Other Special Session Issues

The Governor has called a Special Session of the Legislature to immediately address the budget and cash shortfall. Included in the Special Session is a proposal to decrease K-14 Education program costs by $400 million in 2007-08. Due primarily to a significant reduction in General Fund revenues anticipated for 2007-08, the Proposition 98 minimum guarantee is $1.4 billion lower than the level of Proposition 98 appropriations included in the 2007 Budget Act. However, recognizing a reduction of that magnitude would be very difficult for schools to absorb mid-year, the Budget proposes to reduce the 2007-08 Proposition 98 appropriations by only $400 million. This reduction will be split between school and community college apportionments, $360 million and $40 million, respectively. Due to the timing of the reductions, the Administration will work closely with the Legislature, Superintendent of Public Instruction, the Chancellor's office, school and community college districts, and other education stakeholders to identify savings in categorical programs which can be redirected to mitigate the reduction to school and community college apportionments. These program adjustments will be accomplished through separate legislation in the special session.

Current law delays the K-12 June principal apportionment warrants from June to July. Current law also delays the June apportionments for community colleges to July. The total amount of these deferrals is $1.3 billion. In order to increase cash reserves during months when cash balances are projected to be deficient, separate legislation is proposed for the special session to delay the deferral payments for K-14 from June to September. This will result in saving millions of dollars in interest payments by reducing the amount of funds the state will have to borrow for cash purposes.

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CHAPTER HIGHLIGHTS for K thru 12 Education Back to Top

 K-12 School Spending and Attendance
 Proposition 98 Guarantee
 California State Teachers' Retirement System
 Proposed Workload Budget
 Proposed Budget Balancing Reductions
image of black pointing arrowOther Special Session Issues
 Program Enhancements and Other Budget Adjustments

Budget Summary - K thru 12 Education (pdf * - 329K) -
Provides this entire K thru 12 Education Chapter in pdf format.

Proposed Budget Detail - K thru 12 Education
Displays Proposed Budget Detail information for K thru 12 Education.