The May Revision maintains the Governor’s January budget proposal to reduce 2010-11 revenue limit funding by $1.5 billion. Revenue limits provide general-purpose funding for schools. The May Revision also maintains the Governor’s January budget proposal to reduce 2010-11 funding for the K-3 Class Size Reduction Program by $550 million and to reduce revenue limit and categorical funding for school districts and county offices of education (COE) by $206.3 million due to lower cost-of-living adjustments (COLAs). The May Revision continues to suspend most K-12 education mandates except for $65 million for mandated behavioral assessment plans, $7.7 million for mandated costs related to interdistrict and intradistrict transfers, and $6.8 million for costs related to the California High School Exit Exam.
6In addition, the May Revision:
• Reflects a decrease in local property tax revenues. The May Revision increases funding for school district and COE revenue limits by $1.1 billion in 2009-10 and $447.5 million in 2010-11 to backfill for the loss of local revenues.
• Withdraws the January budget proposal that required $300 million of the proposed $1.5 billion reduction to 2010-11 revenue limits be achieved by contracting out administrative functions to the private sector.
• Increases funding for school district and COE revenue limits by $31.8 million in 2009-10 and $71.7 million in 2010-11 as a result of increased unemployment insurance and CalPERS costs.
• Reduces funding by $78.5 million to reflect anticipated savings in special education, Economic Impact Aid, Child Nutrition, and Charter School Categorical Block Grant programs.
• Reduces 2010-11 funding for COE administration by $28.2 million, instead of $45 million as proposed in the January budget. The May Revision also withdraws the January budget proposal to require COEs to consolidate services and functions.
• Reduces one-time funding for new school categorical programs by $9 million in 2009-10. • Restores the writing component of the 4th grade English language arts California Standards Test.