Suggestions on budget deficit and the Governor’s May Revision

6/15/09

It can’t be solved with cuts alone. There must be additional revenues.

• CTA supports repealing the tax credits that were given to businesses in the 2008-09 and 2009-10 budgets. Millions of dollars in tax cuts were given to businesses as part of the Feb. budget deal. Now that the election failed, those items should be back on the table so everyone is taking their fair share.

• CTA supports the legislature approving majority-vote fee increases. There are several different proposals out there and they should all be on the table: oil severance fee, tobacco, etc. The Legislature should be looking at all of its options.

• CTA supports reducing the voter threshold for passing local parcel taxes. Part of the budget agreement must also include a constitutional amendment to reduce the parcel vote tax requirement from two-thirds to 50 or 55 percent.

Other suggestions for cuts and flexibility in state budget:

• Suspend statewide testing for two years – including the High School Exit Exam. CA is recognized as having some of the highest education standards in the country for our students. The State must provide the resources needed to help students meet those goals. We keep demanding more from schools, but giving them less. For example, in the governor’s latest proposal, they wipe out all money to help schools that are lower-performing. We don’t get rid of the sanctions, but we take away any additional resources to help the schools improve.

• Allow districts to spend down reserves for two years and give them five years to build them back up.

• Allow districts that have surplus property to sell the property and use those dollars in the classroom. Right now, there are restrictions on how that money can be spent. Districts are limited to spending that
  money on other capital expenses. We are saying in these tough times, let districts spend that money in the classroom.
  

Real Legislative and State Budget Reform

• It’s time to get rid of the two-thirds vote requirement to pass a state budget. We have seen how partisan politics can wreak havoc on the state budget. It’s time to join 47 other state’s in the country that require a simply majority to pass the state budget.
• Give local school districts and local governments the authority to pass revenue increases by a simple majority vote – rather than two-thirds. Give some control back to local communities to decide what is best for their schools