Policymakers in Sacramento finally agreed on a spending plan for 2008-09, nearly three months after the fiscal year began on July 1.

The Legislature passed a budget on Sept. 16 after the longest delay in California history, with leaders admitting it does not address the state's long-term fiscal problems. Gov. Arnold Schwarzenegger initially threatened to veto the budget, but he later agreed to sign it after legislative leaders said they would amend the plan to make it harder to spend from a newly enhanced "rainy day fund" and would eliminate provisions that would have accelerated state income tax collection.

But just one month after the budget was signed, the governor called for a special legislative session to deal with the fact that revenues are already substantially below what was assumed at the time, as well as larger economic troubles. Outcomes of the special session will likely not be known until the end of November.

In "normal" years, when mid-year cuts are not on the table, the adoption of the state's budget marks the most important decision regarding the amount of revenues K-12 schools will receive.

In general, the budget process follows a schedule prescribed by law and includes:

• Early January: California's governor presents his budget proposal.
• Mid-May: the "May revision" adjusts the budget proposal based on the state's revised economic projections and April income tax returns.
• Mid-June: The state Constitution requires the Legislature to pass a budget (but, as was the case this year, the Legislature frequently misses this deadline).

For more information, please see our budget calendar, which lays out the budget cycle at the district, county and state level.

Last updated October 29,2008