Possible Budget Cuts
At the March 6th Board Meeting, the Board of Education approved budget contingency plans for 2012-13. The plans are contingent on the Governor's preliminary budget proposal. If the voters approve the Governor's tax initiative, Plan A may be implemented and if the voters do not approve the initiative, Plan B may be implemented. Undoubtedly these figures will change as a result of the May Revise from the Governor. The final budget for the District will not be approved until June.
Click here to view budget contingency Plans A & B
Click here to view budget contingency Plans A & B
Budget Crisis
A Message from the District:
As many of you are aware, our weak economic recovery and unstable State's budget will require us to plan for another year of budget reductions. The following joint communication summarizes the outlook for 2012-2013 and the possible options that the Board of Education will be reviewing in the next two Board Meetings. Needless to say, none of the options are good options. Please be aware that the budget figures will change as a result of the changes made at the State level. We will continue to keep everyone updated as new information becomes available.
Update on the 2012-13 Budget and Its Impact on ABCUSD
As many of you are aware, the State of California is facing a $9.2 billion budget deficit for the fiscal year 2012-13. To help the State balance its budget, Governor Jerry Brown has proposed to reduce the State budget and increase State revenues through a tax initiative in November. The tax initiative will increase the sales tax rate by half a percent, from Jan. 1, 2013 to Jan. 1, 2017 and increase the personal income tax for individuals with annual earnings of more than $250,000 and couples earning $500,000.
During the 2011-12 fiscal year, the State reduced education funding mid-year by $258 million, resulting in a loss of $862,000 for ABC Unified School District. The District absorbed this mid-year cut with its fund balance.
For the 2012-13 fiscal year, the Governor proposed to: a) Eliminate funding for the Transportation Program, resulting in a loss of funding of $1.2 million for ABCUSD; b) Eliminated the funding for the Transitional Kindergarten Program.
If the voters reject the proposed tax initiative in November, education funding will be reduced by $2.6 billion, or $370 per ADA which is approximately $7.4 million for ABCUSD. As a reminder, the State has cut funding for ABCUSD by $30 million in the past four years. If the Governor’s tax initiative does not pass, ABCUSD may face a budget deficit of up to $16 million for 2012-2013.
ABC Unified School District’s Board of Education will be discussing the budget shortfalls during the February and March Board Meetings. They will need to approve two budget contingency plans by the March 6th Board Meeting. This will be the sixth time in five years that the Board of Education must make budget cuts to meet the State’s unstable fiscal condition.
The attached list outlines some of the possible budget solutions the Board of Education will be discussing. We all recognize that none of these options are good options. If the Governor’s tax initiative is not passed in November, many of these options may be implemented.
The District will continue to communicate with all the staff, parents and community members regarding the District’s budget status and welcome input from all stakeholders.
Gary Smuts, Superintendent
Mary Sieu, Deputy Superintendent Ray Gaer, ABCFT President Sergio Garcia, ABCMA President Rebecca Michel-Macias, CSEA President Linda Harbin, AFSCME President |
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English, Chinese, or Korean. English Version Chinese Version Korean Version |