FY 2009 Budget Rescission Bill Update

February 16, 2009 (View Status Update February 22, 2009)

Both the House and Senate passed versions of the FY 2009 Rescission Bill, which essentially cuts approximately $300 million from the FY 2009 budget.  The Senate passed the first version of the bill two weeks ago, but it was heavily amended on the House side last Wednesday.  After the bill passed the House, conference committee negotiations began last Friday and continued most of this week. 

There has been terrible infighting between the majority leadership in the House and Senate, which drastically slowed the process.  A compromise was finally reached on Wednesday evening that included a 4.2 percent cut in all state agencies except K12 education. Instead, K12 education took a $66 base state aid per pupil reduction, for a total cut of $27.8 million in public education more than halfway through the school year.  It also reduced special education funding by $4.5 million.

There is no question that our budget is in crisis, but I could not support a bill that drastically slashes public school budgets so late in the school year.  Our children are our most important investment and providing for their education is our best opportunity to grow our struggling economy.  There were many places to trim the State General Fund and protect our most vulnerable citizens, but too many were unwilling to consider those options.  The Senate approved a much more reasonable, bipartisan compromise that would only take $33 base state aid per pupil and hold public education as harmless as possible.  This proposal was blatantly ignored in the House. 

It is also critical to remember that due to the school finance formula, a “$66 base state aid per pupil” reduction fails to accurately reflect the actual cut many school districts will suffer.  Due to weighting for At-Risk students, most districts will suffer reductions well over $100 per pupil, with some districts even forced to cut over $200 per pupil.  Under this proposal, 48 school districts statewide (almost all rural) will be operating in the red by July 1.    

Now, the bill heads to the Governor’s Office for her careful consideration.  We expect she will make a decision early next week.  Ultimately, we must finalize the FY 2009 budget as soon as possible so we can begin the daunting task of working through the FY 2010 budget.  The session reaches its halfway point next week.  A lack of leadership and compromise has prevented the Legislature from even beginning to address the overwhelming challenges that await us in 2010.

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