While we applaud the Governor's efforts to maintain level funding for education, most districts will still be making additional budget reductions. As of the June district budget adoptions,   2013-14 enters the multi-year projection (MYP). Even level funding would not address the financial impact of extending the MYP forward for another year.

For most districts, the new third year in the projection will be worse in terms of fiscal balance than 2009-10, the year that drops out of the projection. Even without the previously recommended $330 deduction for a potential cut, another year of step and column, health and welfare costs, loss of federal dollars, declining enrollment, increased costs of fuel, utilities and other materials will lead to continued budget pressure.

For districts that cut early and deep, there may be some room for flexibility. However, for those that delayed cuts or did not get labor cost concessions at all, all of the savings from reversal of the potential cut will not cover the increased costs. Remember, that after application of the deficit factor, we are still getting only 80 cents on the revenue dollar and are still nearly last in the nation in per student funding.

As a result, we expect much more disparity in the actions districts will need to take to balance budgets. Therefore, we recommend that you prepare your budget using the assumptions provided by your county office of education then prepare the MYP parallel to that budget. Once the MYP is completed, you will be able to see what you need to do to maintain fiscal solvency. You will then need to be very transparent, as well as support and communicate your conclusions to stakeholders in an effort to achieve understanding, if not agreement.

This budget stuff is not easy to understand under the best of circumstances, and this is a tough year to explain. We are reminded of how hard our budgeting concepts are for students in the various Chief Business Officer certification programs. These are people who are trained, motivated, and want to understand. Not all of our audiences have the same capacity for understanding why we might be different than our neighboring district. That is why we recommend beginning a candid dialog right away.

We estimate that half or more of California's school districts will not be able to make restorations and remain positive. We need to emphasize that we did not get any new money out of the May Revision. We have not received a cost-of-living allowance for four years, and we are no longer receiving federal funds. Sadly, we have come to the point that the absence of further cuts feels like a gain. However, it is not a gain, it is simply a continuation of the anemic funding we have "enjoyed" for decades. While the May Revision is not cause for a wake; it is also not cause for much celebration.

--Ron Bennett, Robert Miyashiro, and Michael Ricketts