Fiscal Emergency Declared by Governor
 
California, February 22, 2008 - The Governor declared a fiscal emergency on January 10, 2008.   As a result of this declaration, the Legislature has 45 days to respond to the fiscal emergency.  On Friday, February 15, 2008, both houses of the Legislature passed a package of bills that will immediately reduce current year spending.  The Governor signed this legislation over the weekend.  Key reductions in the mid-year cut legislative package (ABX3 4) include:

• Prior-year and current year unspent and unallocated categorical funds at the State Department of Education in Sacramento;

At this time, we do not anticipate any of the reductions will impact the General Fund budget for our District during the 2007-08 fiscal year.

Coronado Unified School District is still analyzing the impact of Governor Schwarzenegger’s proposed budget for the 2008-2009 school year.  Although we are pleased that the mid-year reductions determined over the weekend by the legislature and Governor will not impact our District budget, the future budget proposals still provide a significant challenge. 

The impact of the Governor’s proposed budget reduction for 2008-2009 is approximately $1.3 million.  District staff is in the process of analyzing the decrease in revenue and the increase in expenses as we prepare (as required by law) to present a balanced budget for the Board of Education to approve in June.

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