Education Funding Method Promises Battle Next Year

Yes, I know that the Senate is still working on this year's budget, but it is not too early to take a look at the impact of how this deal was actually put together. This budget does fully fund education to the Proposition 98 guarantees and includes a cost of living adjustment. However, the $427 million increase that has been talked about, and generally praised by educators, does not come out of general fund revenue. It was cobbled together from a court case settlement ($250 million), unused money from the previous year's budget ($80 million) and money from the hijacked transportation funding ($97).

So, what does that mean? Well, the 2008-09 budget will start out with a much lower base for education. The original budget that Arnold proposed did not fund the increase in this manner. This sort of maneuvering guarantees that there will be a battle next year on exactly how much money our schools are entitled to. While educators are pleased that there was an increase, groups like CSEA are disappointed that the legislature funded it in this way. It is a relatively minor thing in the grand scheme of things, but it is important.

UPDATE 2:45 Here is the CTA release.

The California Teachers Association and its 340,000 members strongly oppose SB 98 that provides more than $500 million in tax breaks to big businesses and oil companies. The bill, which was passed by Assembly members in the middle of the night as part of a last-minute state budget deal, would reduce future funding for California public schools.

“With the state budget still showing a deficit, this is the wrong time to be offering tax breaks to big businesses and oil companies – especially at the expense of our children and our public schools,” said CTA President David A. Sanchez. “These tax breaks will reduce the minimum school funding guarantee and will mean future cuts to education programs that directly impact students. These cuts would undermine the progress our students have made.”

“We are very concerned that with this bill the Assembly has pulled the rug out from underneath public education while rolling out the red carpet to oil companies, banks and big businesses,” said Sanchez. “Educators urge the State Senate to reject this bill and to pass a state budget that fully funds education and protects our schools from unnecessary reductions down the road. If lawmakers are looking for a place to save money, they should not re-instate funding for standardized testing in the second grade. California is one of only nine states in the country that tests second graders. That’s a common-sense budget cut that will actually help our youngest students focus on classroom instruction, rather than filling in test bubbles.”

CTA supports a state budget package that fully funds Proposition 98 and provides full cost-of-living-increases to all schools and education programs.

Lowering the tax revenue base reduces the amount that goes towards Prop. 98 funding guarantees. Schools get a percentage cut of revenues and if that is lowered then they get less money. As mentioned earlier, the Senate can reject SB 98, without dooming the entire budget. They are separate bills.