This story was reported for San Diego News Network on November 12, 2009.
Despite the staggering deficit hitting California, there’s some good news – revenue is up, chances for education funds are increasing and the state’s veterans will see brighter days. Here’s a more cheery budget diary entry.
Controller’s report: California Controller John Chiang released the state’s latest bank statement Tuesday showing October’s cash flow has risen.
Chiang’s report shows that October’s revenue was up to $285 million, however, year-long revenue has been down $854 million.
“October’s receipts are a welcome break from a largely negative trend line for the last two years,” Chiang said. “However, high unemployment, excessive borrowing, an ailing construction industry and legal challenges to the budget remain real threats to the State’s cash outlook.”
The state’s cash deficit rose to $23 billion by the end of October, up by more than $10 billion from the state of the fiscal year in July.
Meanwhile, overall expenditures are $1.2 billion below the projections. Personal income tax revenue for October was $10.5 million above estimates; corporate taxes were $248 million above and sales tax decreased by $102 million.
Education stimulus update: The U.S. Department of Education will release a set of criteria Thursday to determine which states qualify for President Obama’s education stimulus, dubbed “Race to the Top.”
According to the Los Angeles Times, the guidelines include:
“States will be judged on a 500-point scale that will measure their plans to enact a variety of reforms, including implementing data systems, turning around low-performing schools and paying effective teachers and administrators more.
States now have 60 days to apply for federal funding, which puts more pressure on California Assembly members, who are currently in a special legislative session focused on education. The deadline to apply for the first round of federal dollars is in mid January.
States can apply for a second phase of funding later, but federal officials have warned that only a few will be chosen.”
In October, the California Senate accepted Gov. Arnold Schwarzenegger’s call to re-shape the education system in order to qualify for funds.
Recovery Act funds for vets: Ending this week’s budget diary on a high note – the state received $5 million in American Recovery and Reinvestment Act funds to offer grants for 1,400 veterans.
Schwarzenegger, who announced the news on Veterans Day, said the grants will provide job training, employment and mental health services for California’s vets.
“California’s veterans fought for our freedoms and kept our state and nation safe. We owe them a tremendous debt of gratitude for their service and we must do everything we can to honor them once they have completed their service,” Schwarzenegger said. “By awarding these grants, we are ensuring that our veterans have access to important job training that will allow them to transfer the skills once utilized in the military, to high-quality civilian jobs.”
Hoa Quach is the political editor for the San Diego News Network.