More on potential budget adjustments . . .

A quick follow up to Thursday’s post about the potential cut to the budget if the state’s revenue continues to fall below projections. I shared that one area of potential cut would be to levy equalization because this is one program that is not covered under the basic education law. Because of this, it can be reduced or cut when situations such as this revenue shortfall occur. Prior to this year it would not have been a significant reduction as our levy equalization was between $100,000 and $200,000. That changed for next year because the 2010 legislature increased the percentage of equalization meaning our 2010-11 budget is based on equalization revenue of about $800,000, an amount that would result in visible budget adjustments.

We will need to wait and see what the September revenue projections turn out to be and the governor’s response. If necessary, I don’t believe that she would eliminate all the revenue because in many smaller districts across the state this revenue source is a much higher percentage of their total budget and in larger and more urban areas districts receive no equalization revenue. The one positive in this negative situation is that it comes at the beginning of the budget giving us time to respond.

I also shared in an earlier post that the state would be receiving federal money to save education jobs. This may ease the potential cuts that come from the state’s difficult economic situation. I also shared that the federal bailout was not received positively by all as witnessed by this Seattle Times editorial on Friday the 13th because part of the money comes from cuts to the food stamp program.