Legislative leaders have taken a small step toward closing the state budget deficit, approving an agreement that would cut $3.6 billion from the 2003-04 budget and roughly $1 billion in 2004-05. At press time, the Senate and Assembly had approved the package and sent it to the governor for his signature.
The May 1 agreement reduces Proposition 98 funding by $328 million. These reductions are made by deferring staff development payments to school districts from June to July, and by capturing savings from unexpended funds in current year accounts.
The bill also includes a one-time reduction of $500 million in the State Teachers' Retirement System. It allows the state to miss its July 1 payment to the STRS Supplemental Benefit Maintenance Account.
While encouraged that the Legislature is making progress on the 2003-04 state budget, "CTA cannot support diverting $500 million from STRS," says CTA President Wayne Johnson.
CTA had worked with the governor's office and legislative leaders on a plan that would have guaranteed that any money taken from STRS would be repaid with interest. "We are disappointed that lawmakers have apparently rejected that proposal," says Johnson.
Not funding the state's annual obligation to the teachers' retirement fund and failing to set up a guaranteed repayment plan will make it harder to increase the 80 percent level of purchasing power protection for retirees. CTA is still working with lawmakers on a proposal to ensure a guaranteed payback of the money. STRS officials are exploring their legal options, and CTA will be monitoring those efforts.
"While CTA opposes any cuts to education, we are pleased that lawmakers did listen to teachers and again targeted these budget reductions away from the classroom," says Johnson.
CTA is continuing to urge lawmakers to protect base revenue limit funding for all school districts, funding for class size reduction, special education and schools of greatest need. These efforts will take on an even greater intensity after May 14. That's the date Gov. Gray Davis is expected to unveil his May Revision, an updated version of the budget based on more recent estimates of income and expenses.
Rebecca Zoglman