Governor’s May Budget Revision May Contain Good News for Millbrae

Gov. Jerry Brown’s May budget revision would call off some state deferrals of school funds, but Millbrae School District officials are hesitant get their hopes up amid the uncertainties.

The array of numbers to pick from is dizzying. There are budget proposal numbers ready if the legislature can get a two-thirds majority to extend the taxes that weren’t put on a June ballot; there are similar numbers in case a two-thirds majority can be put together for a temporary extension until a ballot measure can be put on a November ballot, in case the ballot measure passes; there are numbers in case the taxes can’t be extended, which involve a deferral of different funds than the ones that the unexpected state revenues will allow the state to pay to the schools— and then there is a realization that this dizzying array of numbers are all just proposals that will likely change in the legislative process of producing an actual budget.

“Wait until June to take any revenue action, to see if the Legislature does anything,” was the strategy recommended to the Board of Trustees at the May 23 meeting by Paul Disario, interim chief business officer. “We’re dealing with a lot of uncertainty. More uncertainty, really, than before the May revision.”

Before the May revision, the state was looking at cuts of $4.5 billion from K-12 education for 2011-12. About $2.5 billion of that is a deferral of state funds owed to the schools until 2012, said Disario. Meanwhile the other $2 billion is revenue that will be lost if the tax extensions which Brown failed to get onto the June ballot—presuming that the extensions would have passed a public vote—are not extended by some other means, said District Superintendent Linda Luna.

“Essentially, we’re still standing in the dark,” said school board Clerk and President Pro Tem Jay D. Price

“We’re nervous about moving ahead with any expenditures, because we don’t really know where we stand,” Disario said.

The $2.5 billion deferral re-funding, if included in the final budget as proposed in the May revision, would probably mean about $700,000 for the Millbrae School District, said Disario, or about $300 per student for the 2011-12 year.

Potential budget cutting measures mentioned, in case the deferral remains deferred in the final budget or in case the temporary taxes Brown would like to extend expire, included cutting 20 days from the school year, reducing pay, increasing class sizes and the possibility of yet more innovative measures.

“Right now it’s just a matter of whether the governor can get a two-thirds vote for something,” said Disario.

Disario also answered questions from Trustee Marjory Luxenberg about Brown’s proposed elimination of redevelopment agencies.

“It’s important to realize that the money stays local, it doesn’t go to the state,” said Luxenberg. Disario agreed that a greater share of property tax dollars was liable to go to schools, rather than downtown development, if the city’s redevelopment agency was eliminated.

In the meantime, the district is left to try to prepare budgets for each potential fiscal scenario.

“A good strategy is to be as flexible as possible,” said Disario.