Question-and-Answer Session
Operator
Thank you. (Operator Instruction) Our first question comes from the line of David Gold with Sidoti & Company. Please go ahead.
David Gold - Sidoti & Company
Good afternoon.
Dennis Kakures
Good afternoon.
Keith Pratt
Hi, David.
David Gold - Sidoti & Company
Just a couple of follow-up questions. First, can you walk us through a little bit of the guidance. What's embedded it may or by way of California budget? Is that predicated on the five proposals that you are looking for to pass?
Dennis Kakures
Actually if you look at the California budget situation currently we feel for the remainder of 2009 this impact whether that passes or not or probably minimal of the key item for us thus far is in the fact that bonds were able to be sold in March and April. And what that did was fund about $2 billion worth of about $2.5 billion of school construction related project that had been put on hold.
They were either ?shovel ready? projects or projects that were just starting off as they have frozen. So when we look at the rest of this year, although we would love to see the initiatives pass on May 19th, its less critical to this year than it is to the 2010 school year in our mind.
David Gold - Sidoti & Company
So presumably the bonds that have been sold basically provide all the funding that you would need to sort of to get to that range?
Dennis Kakures
Let's put it this way, the fact that the December 18th stalled projects are now up and running, at least the great majority of them. That was a very important item.
David Gold - Sidoti & Company
On that note, I guess if we go back a quarter ago on that call you pointed to looking for the budget to pass and basically without it, I think you said something along the lines, there were some [stalled] projects like you said, presumably with some [retained] projects? So now that the dollars are out there, you are withholding guidance. Is that to say that your money hasn’t come through maybe as quickly as a matter of -- in other words if the situation is better why wouldn’t guidance be given now?
Dennis Kakures
Well the situation I'd say is better. It turned out that having those initiatives passed in May became less important once the bonds were sold. The bonds were the key to be able to fund the 50% that the state needs to provide for these modernization projects. So that was what was most critical and I would still say that fact of the initiatives passing on May 19th, that also important buts it’s a longer term, that has a longer term dynamic until -- and if they don’t pass, we'd expect they've got – they will sit down and figure out another approach.
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