As deliberations begin on its 1993-94 fiscal budget, California is for the second year in a row facing the likelihood of a decline in revenues. Under the governor's budget proposal, funds for schools would, for the third year in a row, remain at the same level per student in Average Daily Attendance (ADA). The lingering recession in California and the loss of jobs have combined with tax changes to create large state budget shortfalls. These budget shortfalls have put increasing pressure on state school funding. As in the state's 1992-93 budget, unusual accounting techniques and loans to school districts are proposed to make up the losses in the 1993-94 budget. Shifting property tax revenues away from cities and counties to school districts has also been proposed. Proposition 98 guarantees that a certain percentage of the state general fund shall be allocated for K-14 education. Proposition 111 allows adjustment in school funding when state general fund revenues decline. Some of these requirements and provisions were avoided by accounting practices and shifting tax dollars. Considering the expected slow growth in California's economy and the use of creative budget management, it is unlikely that per pupil funding will increase in the next few years. Tables and figures provide information on state school and general fund levels. (JPT)