November 10, 2010 AASBO Bi-Monthly Meeting Legislative and Budget Update By Chuck Essigs.
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Transcript of November 10, 2010 AASBO Bi-Monthly Meeting Legislative and Budget Update By Chuck Essigs.
November 10, 2010 November 10, 2010 AASBO Bi-Monthly MeetingAASBO Bi-Monthly Meeting
Legislative and Budget Legislative and Budget UpdateUpdate
By Chuck Essigs
“Even if you are on the right track, you will get run over if you just sit there. – Will Rogers
If you are going through hell, keep going. – Winston Churchill
Friendship is what gets you through the bad times and helps you enjoy the good times.
Election ResultsElection ResultsHouse
◦40 Republicans◦20 Democrats
Senate◦21 Republicans◦9 Democrats
Election ResultsElection Results30 Legislative Districts
◦19 Legislative Districts Republican Senator + 2 Republican
Representatives
◦9 Legislative Districts Democratic Senator + 2 Democratic
Representatives
◦2 Legislative Districts Republican Senator + 1 Republican and 1
Democratic Representative
Propositions Propositions Proposition Number
Description Pass or Fail
Prop 106 Health Care Choice Passed
Prop 107 Preferential Treatment of Discrimination Prohibition
Passed
Prop 109 Right to Hunt and Fish Failed
Prop 110 State Trust Lands Failing
Prop 111 Lieutenant Governor Failed
Prop 112 Initiative Filing Deadline Failing
Prop 113 Secret Ballot for Union Election
Passed
Prop 203 Medical Marijuana Failing
Prop 301 Growing Smarter Fund Sweep
Failed – 74% No Votes
Prop 302 First Things First Fund Sweep
Failed – 69% No Votes
Budget ShortfallsBudget ShortfallsFY2011 $800 to $900
million(Includes Prop 301
and Prop 302)
FY2012 $1.4 billion
General Fund Spending General Fund Spending FY2011FY2011K-12 Education 37%Medicaid 29%Higher Ed 11%Prisons 11%State Workers 5%Debt Service 3%Other 4% Total 100%
FY11 Share of Cuts - FY11 Share of Cuts - FormulaFormula
Area Share of $900 Million
K-12 Education (37%) $333 Million
Medicaid (29%) $261 Million
Higher Education (11%) $99 Million
Prisons (11%) $99 Million
State Workers (5%) $45 Million
Debt Service (3%) $27 Million
Other (4%) $26 Million
Total $900 Million
FY12 Share of Cuts - FY12 Share of Cuts - FormulaFormulaArea Share of $1.4 Billion
K-12 Education $518 Million
Medicaid $406 Million
Higher Education $154 Million
14.5% Reduction in FY12 Starting Budget
Over a 10% Reduction in the base level
Additional IssuesAdditional IssuesFor FY11
◦K-12 Education and Higher Ed have federal MOE protection
Cutting Medicaid means loss of federal dollars ($7 billion)
Debt Service Obligations
Funding Already Suspended Funding Already Suspended – FY11– FY11Soft Capital $165 MillionNew Utility Formula $100 MillionBuilding Renewal $231 MillionCharter School
Additional Assistance $10 MillionTotal $506 Million
Example – K-12 Reduction Example – K-12 Reduction for FY12for FY12Proportional Share - $518 Million
14.5% Reduction in State Dollars
10% Reduction in Base Level