New LAO Report on Cash Flow
Thu, 7 May 2009
From: Scott Lay
Subject: New LAO Report on Cash Flow
The Legislative Analyst's Office just released a new report on the state's cash flow, which identifies ongoing cash management challenges for the state. I wanted to draw one particular paragraph is important to call to your attention, as it could come into play quickly. We'll talk more about ACBO about what we can do to advocate additional state deferrals to community colleges, but we could have a fight ahead.
"Additional Payment Deferrals May Be Necessary. Because state payments to schools represent a large portion of General Fund disbursements in cash flow deficit months like July and October, additional measures to delay scheduled state payments to schools may be necessary. Deferrals of scheduled payments for various other programs also may be required. To the extent that federal stimulus funds are available to school districts and other local governments by early in the 2009–10 fiscal year, this may help governmental entities cope with additional payment delays."
President and Chief Executive Officer
Community College League of California
2017 O Street, Sacramento, California 95811