If passed, the revised state budget plan would minimize cuts to education

Thanks to the hard work of local chapters and communities across the state in raising awareness about the impact of the drastic cuts for schools proposed in January, CTA and the statewide Education Coalition have been able to work with the governor's office in designing a revised state budget plan for 2003-04 that limits reductions in education funding and provides a responsible way to close the state's $38 billion deficit without making further cuts to schools.

"The revised budget package cuts $1.5 billion from K-12 schools and, while it will be painful, it's more than a billion dollars less than the cuts proposed in January." says CTA President Wayne Johnson. "Governor Gray Davis listened to teachers and worked with CTA to design a budget proposal that eliminates across-the-board cuts, fully funds the state's class size reduction program, and protects funding for schools of greatest need and special education.

The proposal contains a slight decrease in the base revenue limit - which must be repaid in future years - and gives districts increased flexibility in using reserve accounts.

"An important ingredient of the budget plan is the way it allows districts more flexibility with reserves to offset the cuts," says Johnson. "Chapters should insist that districts use this flexibility to protect the bargaining unit and keep cuts away from the classroom. This will be a challenge because district administrators love their reserves more than life itself. Keep them honest by paying attention to reserves, fund transfers and ending balances."

The governor's proposal reduces the number of state-mandated tests for students and maintains funding for most categorical programs, especially programs that serve low-income families or students who do not speak English fluently.

The revised budget proposal cuts $284 million from California's community colleges, rather than the $530 million proposed in January. It also restores funding for major categorical programs and reduces the proposed student fee increases from $24 a unit to $18 a unit.

In addition, the May budget proposal restores funding to basic aid districts by reducing the offset proposed in January to $20 million and applying it toward categorical funding that would otherwise be provided to basic aid districts. In addition, the $120 per ADA funding for basic state aid to these districts will be eliminated. All totaled, it's a 4.5 percent reduction that is consistent with the reduction in non-basic aid districts.

Following are the highlights of the 2003-04 state budget plan for education:

• Funds for attendance growth would increase from 1 percent in January to 1.34 percent, which equates to $183.4 million for K-12 and $12.8 million for special education.
• Class size reduction would be fully funded at $906 per student for the full-day program and $453 per student for the half-day program.
• The plan would include $65.3 million for additional schools to enter the High Priority Schools Grant Program.
• The plan would cut nearly $25 million from the state's testing system, eliminating portions of the Golden State Exam.
• The 2003-04 COLA would not be funded, but a deficit factor would be included in the budget language.
• The $250 million for equalization that was proposed in January would not be funded.
• The plan would continue the suspension of the teacher retention tax credit.
• Across-the-board cuts to categorical programs would be eliminated.

The revised budget is just a proposal and must still be approved by the Legislature. "CTA supports the revenue enhancements in the revised budget package as a responsible solution to the budget deficit that will avoid deeper and more painful cuts to our students and schools," says CTA President Wayne Johnson. "The proposal includes a half-cent sales tax increase that would be devoted exclusively to paying off the deficit. When the deficit is eliminated, the tax will be removed."

"Our students and schools must have the state budget approved on time," he adds. "We will need everyone's help to convince lawmakers to support this budget proposal. It's the only way to prevent further cuts in education that would endanger California's efforts to keep our schools improving."

CTA, in concert with a coalition of parents, other unions, school boards and school administrators, is working to build support for the May Revise budget. The campaign will urge legislators to pass the budget by the constitutional deadline in mid-June.

CTA is also working with local staff and leaders to assist them in analyzing their districts' reserves and ending balances in an effort to minimize the impact on the classroom.

"It is vital that we do everything we can to pass this budget on time," says Johnson. CTA is asking members to call or write their local legislators.

Proposed program cuts