The 7 minute video above describes what is in play on this last day and what to expect going forward.
IT IS LIKELY THAT THERE WILL NOT BE A SETTLEMENT:
As of noon today, a settlement still seems out of reach. Howeveer it is not over until it is over!
ONLY ISSUE FOR K-12 TODAY: SHIFT OR UNALLOTTMENT:
It is still possible that the Governor and the legislature would put the K-12 Aid and Tax revenue shifts into law. If so, at least the rules would be clear and there would be a committment to begin reversing the shift when state revenues improve in the future.
If they go the way of un-allotment, the Governor will delay or suspend aid payments to schools. It is unclear if he has any power to affect property tax revenues, but I don't think he does. The amount of money schools receive would probably be about the same, but the cash flow may be less predictable and uneven. The loss of predictability would come from not knowing when the delays would occur. The unevenness will occur because Districts have differing mixes of local tax revenues and state aids.
NO FIX FOR THE TRA PENSION SYSTEM:
Some of the players held out too long to compromise on the TRA part of the Pension Bill. Thus as of now it looks like Article 6 (TRA) will be removed from the final Bill. The fund is moving into dangerous underfunded territory unless there is a near miraculous reversal ( to the positive side) for the stock market.
BE CAREFUL WITH LOCAL COMMENTS.... OTHER UNITS OF GOVERNMENT ARE BEING NEGATIVELY AFFECTED MORE THAN K-12:
Hopitals, Nursing homes, Counties, Cities and Higher Education are all facing significant reductions in their future. While K-12 Education did not fare well either, our outcome at 0% and 0% with shifts is a better scenario.
Thus be careful in your comments so that you don't unintentionally rub salt in others wounds.
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