reconvene regular meeting: 7:00 pm - Irvine Unified School District

4. In order to reduce the Proposition 98 minimum guarantee for Fiscal Year 2009-10 and in
consideration of a funding formula under Proposition 98, which calculates a level of funding for the
current fiscal year in part based upon funding allocated during the prior fiscal year, the Revised 2009-10
State Budget Act retroactively reverted approximately $1.6 billion in Fiscal Year 2008-09 unallocated
funds for categorical programs to the State General Fund. The Proposition 98 revenue limit funding is
reduced in Fiscal Year 2009-10 to backfill the reduction in categorical funding.
5. The Original 2009-10 State Budget Act deferred until July 2009 approximately $3.2
billion in K-14 principal apportionments of which approximately $2.3 billion was to be allocated to K-12
programs, $570 million to K-3 class size reduction and $340 million to community colleges. In addition,
the Original 2009-10 State Budget Act deferred until October 2009 principal apportionments established
for the months of July 2009 and August 2009 in the approximate amount of $2.5 billion.
6. The Revised 2009-10 State Budget Act defers $1.8 billion in payments from Fiscal Year
2009-10 to August 2010 from school district revenue limits and community college apportionments.
7. The Original 2009-10 State Budget Act eliminated the High Priority Schools Program,
which provides additional funding to low-performing schools in the State to improve academic
performance. The elimination of the High Priority Schools Program reduced amounts received by such
schools in the aggregate amount of $114.2 million.
9. The State will defer approximately $2 billion in K-12 payments from their previously
scheduled dates in Fiscal Year 2009-10 to December 2009 and January 2010. The payment schedule for
K-12 apportionment funding and categorical funding will be revised to distribute five percent of total
payments in each of July and August and nine percent in each of the remaining months.
10. The Revised 2009-10 State Budget Act includes $6 billion in funds from the American
Recovery and Reinvestment Act of 2009 in Fiscal Years 2008-09 and 2009-10 to maintain the minimum
spending level required for receipt of State Fiscal Stabilization Fund allocations for K-12 programs.
11. The Original 2009-10 State Budget Act implemented provisions to grant school districts
increased flexibility with respect to the use of certain funds received from the State to shift funds to meet
their highest priority needs in Fiscal Years 2008-09 through 2012-13 and reduces penalties associated with
the K-3 Class Size Reduction program through Fiscal Year 2011-12. These flexibility provisions will not
apply to programs protected under federal law or programs that were approved pursuant to voter initiatives.
12. The Revised 2009-10 State Budget Act provides to schools the flexibility to reduce
instruction by up to five days to accommodate a reduction of approximately $2.1 billion of revenue limit
apportionments to school districts and county offices of education, although these types of reductions are
generally subject to labor negotiations. In addition, the Revised 2009-10 State Budget Act will permit
schools to reduce the amount of money that they are required to set aside for facility maintenance and to
use funds from the sale of surplus property for non-facility related purposes.
November 2009 LAO Report on the State’s Budget. On November 18, 2009, the Legislative
Analyst’s Office issued a report entitled “The 2010-11 Budget: California’s Fiscal Outlook” (the “2010-11
Fiscal Outlook”) The 2010-11 Fiscal Outlook includes a forecast of the State’s General Fund revenues and
expenditures that indicates General Fund budget deficit of $20.7 billion through Fiscal Year 2010-11.
Such amount is comprised of a $6.3 billion projected deficit for Fiscal Year 2009-10 and a $14.4 billion
gap between projected revenues and spending in Fiscal Year 2010-11. The 2010-11 Fiscal Outlook
attributes the majority of the State’s budget problems during Fiscal Year 2009-10 to the State’s inability to
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