Financial Projection Dartboard—AB 1781 Budget Bill Version
Click here for our Financial Projection Dartboard, updated for the Adopted State Budget and recent economic forecasts. This version of the Dartboard reflects current projections for the statutory cost-of-living adjustment (COLA) for future years that are higher than those forecast in our 2008 May Revision Dartboard. For example, the statutory COLA for 2009-10 is now projected to be 5.60% versus the 4.83% forecast made in May.
However, many things could affect how much money comes to education. Therefore, while the COLA projection for 2009-10 is higher, it is indeed very volatile—we think too volatile to spend. For that reason, for the first time, we have added another line to the Dartboard that we highlight with bold print. SSC’s Recommended Planning COLA is the fourth factor listed on the Dartboard. Each year, SSC’s Recommended Planning COLA matches the statutory COLA with the exception of 2009-10. For that year, we are recommending, for planning purposes, a zero COLA due to the dire fiscal outlook for the state economy and state revenues.
In many years, we advise districts to plan their spending according to the traditional Dartboard factors . . . but not this year.
—Sheila G. Vickers