Gov. Brown and legislative leaders have reached agreement on the new budget, and a key element of that is the governor's plan to revamp school funding.
From EdSource's John Fensterwald: "Brown had proposed a formula with three components: base-level funding for all of the state’s 6.2 million K-12 students, a supplement for every high-needs child – English learner, low-income student and foster child – and bonus dollars above the supplement for districts with the largest concentrations of high-needs students. Under the compromise, an extra $3 billion in base funding will assure that nearly every district, especially those with few disadvantaged students, will get back state funding that had been cut as a result of the state’s budget crisis since 2007-08 plus cost-of-living increases moving forward. In addition, about 40 districts that would not get all their funds restored under the new formula – including the Berkeley, Pleasanton, Santa Barbara and Dublin Unified Districts – will receive an “economic recovery payment” to ensure they do not lose funds under the plan."
"To make room for this, the supplement for every high-needs child will be cut. However, the concentration grants in districts with especially large numbers of high-needs students, which Brown had staunchly defended as critical to his plan, will increase. How much each district will get as a result of the changes will depend on the percentage of high-needs students it has."
"Brown had proposed to phase in the formula over seven years. The new plan calls for an 8-year implementation, ending in 2020-21."
Speaking of the budget, the tight-fisted Brown clung to his demands that lawmakers use the lower revenue estimates in putting together the budget, rather than the higher, rosier estimates that some, mainly Democrats, had demanded.
From the Chronicle's Wyatt Buchanan: "One of the biggest compromises is that lawmakers agreed to use the governor's more conservative projection - $97.2 billion - of tax revenues for next year. The Legislative Analyst's Office had pegged the number at $100 billion, and Democrats who control the Legislature wanted to use the higher projection to begin restoring social programs cut the past few years."
"As all budgets are acts of compromise, this budget will be no exception," said state Sen. Mark Leno, D-San Francisco, chairman of the Senate Committee on Budget and Fiscal Review. Leno said that at "first blush" it may seem disappointing, but that lawmakers can now wait until January to see if revenues indeed come in higher and then discuss spending the money."
"Other significant pieces of the budget approved by the Legislature's Budget Conference Committee include loaning $500 million in revenue from the state's cap-and-trade program, which is supposed to be spent on greenhouse gas reduction, to the general budget fund."
Revenues are coming in stronger than expected as the state's economy, weakened by years of recession, continues to improve.
From the LA Daily News' Andrew Edwards: "California took in $7.27 billion in revenues during the month of May, exceeding estimates by 12 percent, Controller John Chiang announced today."
"California continues to show strong signs of recovery. May's higher revenues reflect growing employment, increased consumer spending, and a resurgent housing market," Chiang said in a statement. "However, this good news should be tempered by nagging questions regarding its sustainability and by the need to repay years of accumulated debt."
"The higher-than-anticipated income has helped to lower California's cash deficit to $3.2 billion, according to the Controller's office. The state closed its past fiscal year with a a $9.6 billion deficit, and officials are borrowing money to make up for shortfalls."
During his first stint as governor, the restless and ambitious Brown seemed to have little time for governance and alienated even the members of his own party. But this time, h's got the hang of it.
From the Bee's Dan Walters: "Brown 2.0 is a different kettle of fish. Older and presumably wiser, he's fully engaged and has not hesitated to confront the Legislature, still controlled by his fellow Democrats. He usually gets his way, as the 2013-14 budget deal that emerged Monday indicates."
"This is an important budget, the first since voters voted to temporarily raise sales and income taxes and one that sets the fiscal tone for the remainder of Brown's second stint, assuming that he wins another term next year."
"Brown wants to put the state's chronic budget problems behind him, at least for the rest of his time in the Capitol, and get on with other matters on which he intends to leave his mark, such as the bullet train project, completing his father's water system and changing the way schools are financed."
Amid all the positive news, there is one gloomy segment -- the physicians who perform Medi-Cal services. Their reimbursements face a 10 percent cut.
From the LAT's Anna Gorman and Anthony York: "This summer, when California makes a controversial 10% cut to Medi-Cal rates, he could get paid less. Ma said he didn't go into safety net medicine for the money, but he worries that the reductions will make it even harder for his patients to get medication, medical equipment and appointments with specialists."
"The reductions to providers like Ma will also create a massive glitch in the implementation of national healthcare reform — the cuts to Medi-Cal rates are to occur just as more people prepare to join the program under the Affordable Care Act. Currently 8.3 million poor Californians are covered by Medi-Cal, and more than 1 million new enrollees are expected beginning next year."
"State officials argue the 10% decrease is necessary to keep healthcare spending under control, but medical providers fear it will devastate an already shrinking workforce and jeopardize patient care."
Finally, from our "When Cows Fly" file comes word that air travel may be fueled some day by cow poop and that delightful aroma you notice on liftoff isn't air freshener.
"A plane powered by cow dung is on the shortlist of a global competition to design the aircraft of the future."
"The jet is fuelled by methane generated from farmyard waste stored in refrigerated pods next to the plane’s engines..."
"One cow can produce up to 30 gallons of manure a day — potentially generating up to 70 gallons of fuel a year."
"A 3,500-mile flight from London to New York uses around 17,500 gallons of fuel — which would take 1,000 cows three months to produce."
Mooo.....