Blog

California Budget Projections and What School Counselors Can Do

Last week the Governor's Department of Finance (DOF) provided a Fiscal Update that addresses budgetary consideration due to the sudden drop in state revenue of $54 billion due to Covid-19.
DOF is predicting without federal and other interventions, California can expect a reduction to Proposition 98 for the next school year of $18.3 billion, a 20% decrease from the previous year. This Friday we anticipate the Governor's May Revision, (required by May 15) which will reflect more precisely the projected impact on K-14 education.

THE DETAILS: In the recent California DOF report the dire situation at the national level is summarized, "COVID-19 has caused a national recession, a precipitous decline in income, rapidly rising health and human services caseloads and substantial COVID-19 driven costs. The widespread economic interruption caused by the global pandemic is unprecedented in modern history." As for California, DOF forecasts a total of $33.4 decline in General Fund revenues due to a projected 25.5% decrease in personal income tax revenue and a projected $7.1 billion increase in costs associated with additional health and human services programs (approximately $6 billion).  READ MORE

Archive