LAO Predicts Drop in Education Funding Next Year
The California Legislative Analyst’s Office (LAO) released a sobering report Wednesday warning of a looming $25 billion budget shortfall next year.
The current economic downturn has already taken a large chunk out of state revenues. In September, revenues were lower than expected for the fourth straight month, coming in around $2.8 billion below projections. With a recession potentially on the horizon, things are likely to get worse.
According to the LAO, California is projecting a $2.6 billion deficit for schools and colleges, and the state will have to cut into the education rainy day fund to cover its projected shortfall. Schools now fear painful cuts after enjoying record-high education spending. Alas, what goes up must come down.
“There’s a lot of anxiety,” School Boards Association Spokesman Troy Flint told EdSource.
Programs that could end up on the chopping block include after-school and tutoring activities. In the meantime, the LAO has already recommended that lawmakers reduce allocations for the Expanded Learning Opportunities program.
Read more at EdSource.