There is both some good news and bad news as we learn more about the Governor's proposed budget reductions. The good news is that the levy equalization cut (LEA) would not start until January 2013. That means that we will not lose the revenue this year, about $930.000. The bad news is that her proposal also puts in place a new system that results in no LEA revenue in the future for many more districts including ours. So, potential short term gain and long term loss. At least we will be able to plan for the change, unlike the potential loss of about $1 million with the Governor's proposed grade 4-12 class size increase that, if enacted by the legislature, would result in a revenue reduction this year.
Somewhat related to the budget concern is an interesting conversation I had this afternoon with two Boeing employees. They were asking me how the Governor and legislators can cut teacher salaries like they did in this past budget when there are negotiated agreements in place. They were surprised to learn that the cut was to the district's revenue and not to actual teacher salaries. They quickly saw that the legislators looked tough in the media, but that they were actually simply shifting the problem to the school districts. The same thing could happen again in the November special session if they were to use salary cuts or reductions in student days to reduce state expenditures. We will continue to monitor and share what we learn.
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