Financial Management Resources Help Members Prepare for Shifting Cash Flow Situations

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August 18, 2011 Several weeks ago, State Controller John Chiang reported that for the first month of the new fiscal year, California missed its $5.2 billion July general fund revenue target by $538.8 million, or 10.3 percent. As you may recall from our Budget Brief, this year's budget contains an automatic "trigger" to force additional cuts to education and other public services if revenues fall short of projections. Because the Department of Finance has until December to determine whether the state is on track to hit its revenue target, it is clearly premature to assess where the state will be in December based on only one month of receipts. However, that news and the recent downturn in the financial markets add additional concerns about the optimistic projections for state revenues assumed in the approved budget. Charter schools should continue to monitor cash flow very carefully. As a reminder, CCSA offers a number of resources to help member schools implement the principals of sound financial management. Click here to access online Financial Management materials.