State controller says California revenue is already falling short of projections

Lisa Howell, IUSD’s assistant superintendent of Business Services, was recently interviewed by KPCC (89.3 FM) radio reporter Adolfo Guzman-Lopez to talk about the disconcerting news that California’s revenue is lagging projections.

Howell said IUSD budgeted conservatively for 2011-12 based on the potential for midyear cuts, which will be automatically triggered at the state level if California’s revenue falls short by more than $2 billion.

On Aug. 9, Controller John Chiang released a report indicating the scales may be tipping in that direction. State revenues for the fiscal year that began July 1 are already down $538.8 million, or more than 10 percent below projections from the budget recently signed by Gov. Jerry Brown, Chiang said.

Howell told KPCC that IUSD built its latest spending plan based on the worst-case scenario in which midyear cuts become a reality. While Irvine anticipates a positive ending balance this year, the district still faces a structural deficit that must ultimately be resolved.

“Over the past two years we cut $38 million, and that’s higher class sizes, reduced program, furlough days, budget freezes, hiring freezes,” she said.

To read the KPCC story, or to listen to the audio version, click here.