...Significant K- 12 Revenue Gr owth: Fitch views the governor's proposed 2015-2016 budget (the budget) as positive o verall for school districts. The budget would include 7.9% Proposition 98 funding growth to accelerate local control funding formula (LCFF) implementation, completely pay down remaining funding deferrals and provide one-time funding for Common Core implementation. The budget also proposes capital facilities funding reforms at the local level and acknowledges that recently passed fund balance caps have raised concerns over financial deterioration and merit further discussion. Administrative Streamlining for RDAs : The budget calls for redevelopment agency (RDA) legislation that would clarify and refine RDA dissolution statutory ambiguities and streamline administrative processes. Fitch views the proposal as neutral to slightly positive for credit quality, as current administrative processes, while cumbersome, have enabled RDAs to pay their tax allocation bond (TAB) debt service...
