Despite a $23.6 billion budget shortfall, Gov. Gray Davis has signed into law a 2002-03 budget that fully protects Proposition 98's school spending guarantees and increases K-14 education funding by $3.3 billion (8.6 percent) over 2001-02.
"Given the economy, CTA is pleased with the continued commitment to education in the state budget," says CTA President Wayne Johnson. "We commend the governor and lawmakers for putting together a spending plan that protects Prop. 98 guarantees and boosts education spending."
At the same time, CTA is warning chapters that this is going to be a tough bargaining year and they should be wary about any superintendent or school district official who claims local schools are receiving less money. "Get the facts," says Johnson.
The 2002-03 state budget contains a total K-12 education budget of about $31 billion.
CTA successfully fought for a 2 percent COLA increase for revenue limits and all categorical programs. This is above the amount required by state law.
K-12 per-pupil spending rises from $6,610 to $7,067 in 2002-03, a 6.9 percent boost. As he signed the bill, Davis pointed out that per-student spending has risen $1,300 during his four years in office.
The budget provides a 2 percent COLA for community colleges and $118.7 million to fund enrollment growth. Community college student fees remain $11 per unit.
The budget also includes more than $400 million for instructional materials, $24 million for library materials and $217 million for low-performing schools.
To help reduce the deficit, the budget defers $681 million in education spending to the 2003-04 budget year. "This money is only a deferral - meaning school districts will receive some 2002-03 funds in August," says Johnson. "The deferral is not a cut. Any school district that claims otherwise is only playing games at the bargaining table."
Even School Services of California reports that the deferral of funds will not affect program funding: "This [$681 million deferral] represents a cash-flow problem and an accounting headache but - considered on the two-year budgetary basis - results in no real decrease in program funding, as long as the transfer remains a transfer and not a theft."
In addition to the deferral, Davis reduced funding by $143.3 million and put it into a "reserve fund." CTA is disappointed that Davis did not consult with teachers on these reductions and is evaluating their impact on local schools. The reductions include $42 million in equalization funding and $36 million in Public Employees' Retirement System funding.
The possibility of a special session of the Legislature to revisit the budget is being raised in Sacramento as the deficit continues to grow. Whatever develops, CTA will continue to work for full funding of COLA and growth, and full protection for Proposition 98 guarantees.