Posted on 01/10/2005 8:01:18 PM PST by NormsRevenge
SACRAMENTO - Education spending would rise by $2.9 billion under Gov. Arnold Schwarzenegger's spending plan for the 2005-06 fiscal year, which covers a growing student population and a cost-of-living adjustment, but little more.
Education spending is the largest share of the state's general fund, with Schwarzenegger proposing a $36.5 billion budget next year - an increase of $2.4 billion in state money over last year's budget. The increase works out to a $362 per pupil increase in state funds, for a total of $10,084 per student, including all state and federal sources.
But while the budget calls for more money, it also contains a plan to shift about $500 million in teacher pension payments to local school districts.
The bare-bones budget reflects the governor's plans to pare down government, cutting virtually all categories of spending and borrowing nearly $4 billion to bridge the $9 billion deficit.
"I will continue funding education," Schwarzenegger said Monday as he unveiled his $111.7 billion budget proposal. "But there's only so much money in the budget and we have to be responsible."
Last year, Schwarzenegger made a deal with education interests that cut $2 billion from expected money for schools guaranteed by Proposition 98, the voter-approved funding guarantee. That was to help close a $17 billion deficit. Now, school leaders want $1.1 billion in unanticipated tax revenues this year they claim they are entitled to under Proposition 98.
Schwarzenegger, following the lead of the nonpartisan Legislative Analyst's Office, said those funds will instead go to help solve the budget deficit. The governor and the LAO say schools cannot claim the extra funds because the Legislature suspended the funding guarantee last year.
The state's two teachers unions, administration and other education groups called the budget plan a broken promise to schools.
"There is no question that the governor has walked away from the schoolchildren of the state and he will pay a political price for it," said Kevin Gordon, executive director of the California Association of School Business Officials.
Barbara Kerr, president of California Teachers Association, which represents 335,000 public school teachers, said the voters who overwhelmingly supported Proposition 98 understood that "if we want a first-class state, we must have first-class education."
Because Proposition 98 is based on the previous year's funding level, the $1.1 billion hit reduces next year's funding by about the same amount, Gordon said, amounting to an approximate $2 billion loss to schools.
Factoring in the shift of pension costs, the 7.1 percent increase in school funding drops to 5.2 percent, said Schwarzenegger's finance director Tom Campbell. The state expects to save $469 million by requiring schools to make contributions to the California State Teachers Retirement System, but the exact cost to local districts could change, he said.
"It's a bargainable issue," Campbell said. "(School districts) may not pay dollar to dollar."
State Superintendent of Public Instruction Jack O'Connell said the pension proposal puts more pressure on school districts but doesn't help the local schools find the money. California teachers aren't eligible for Social Security, he said, but rely entirely on CalSTRS.
Scott Plotkin, executive director of the California School Board Association, said shifting that cost to school districts will force administrators to choose between paying for retirement and classroom instruction.
"It's a set up," he said.
Schwarzenegger is proposing to repay schools $328 million that was deferred in previous budgets. And he is seeking a constitutional amendment that would prevent future Legislatures from delaying payments to schools.
Educators worry that Schwarzenegger's budget reform plan, submitted to the Legislature last week, would leave schools vulnerable to midyear cuts if lawmakers didn't pass a budget on time or if revenues fell short of projections.
Unlike Proposition 98, which calls for reimbursements to schools if the state suspends the law, schools wouldn't be repaid for money cut under the new proposal.
ON THE NET
Read the governor's budget proposal at http://govbud.dof.ca.gov/home.htm
Boo hoo...I think parents in CA should have a class action lawsuit against the State for years of mishandling their children's education.
The teachers union is already running local ads slamming any cuts before the fact. Just like AARP is doing for SS reform...
When was the last time you heard a public education professional say, "Wow, I can't believe they gave us that much money, I'm so excited!"? Or better yet, "You know, we can't possibly spend that much?"
This story could write itself in all 50 states (plus DC) every time a budget is proposed.
The teacher's union acts like the mob.
The Federal law is outrageous in making the state take in illegals to educate at $10,000 a pop.
The state Democrat controlled legislature is also half retarded and the other half crooked, making a mess of California.
If the overfed, left-wing, underworked teaching establishment, swilling at the public trough as though there is no limit to the taxpayer's dollar, is angry about Schwarzenegger's educational policies, he MUST be doing something right.
Schwarzenegger's state budget takes hard line on California spending-releases $111.7 billion budget
CA: Governor pitches $1.2 billion in health, welfare program cuts
The governor's plan is not a hard limit preventing spending from increasing faster than the annual growth in population and inflation, similar to one that was watered down 15 years ago to allow more spending on schools and transportation.His finance director, Tom Campbell, said yesterday that, unlike a spending limit, the governor's plan would allow the gap to be closed not only by cuts but by tax increases, if the lawmakers choose that option.
This is what I like about Tom Campbell: while you may not agree with him, he won't BS you.
So much for "I won't raise your taxes." Arnold will let the legislature do it, and they'll be happy to go along.
Typical Arnold. What a screw job; what a liar.
See my post re: Spending limit on this new thread:
http://www.freerepublic.com/focus/f-news/1319408/posts?page=10#10
I know I'm a skeptic... but something is beginning to smell around here.
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