A key legislative subcommittee on March 29 hung a "do not pass" recommendation on CTA-opposed proposals by Gov. Arnold Schwarzenegger that would hold back $469 million from school districts for retirement costs and convert public employees' secure retirements into a gamble.
Following testimony against the plans by Superintendent of Public Instruction Jack O'Connell, representing the Education Coalition, a subcommittee of the Assembly Budget Committee urged the full panel to reject the governor's January budget proposals that would shortchange local districts an estimated $469 million in CalSTRS reimbursements and would convert CalSTRS and CalPERS from predictable defined benefit plans into 401K type crapshoots.
"Don't be fooled. This [CalSTRS holdback] is a straight cut to our schools. Our school boards know this and are struggling with it," the Supt. testified. Of the retirement system conversion he stated: "Teachers should not be asked to take a vow of poverty -- in the workplace, or once they retire."
The discussions are part of the Assembly's work in formulating its own final budget proposal. Both houses will gear up following the release next month of the governor's updated revenue forecasts and expenditure plan, the "May Revision."
Lawmakers could vote on the governor's retirement proposals later this year as part of their budget deliberations. The pension conversion plan is also contained in a Special Session bill.
Panelists Hit ACAx1 4 - Opposed Robocut Plan
Meanwhile, the Assembly Budget Process Committee on March 30 held another "testimony -only" hearing on ACAx1 4 (Keene), the governor's special session bill that would gut Proposition 98 and implement automatic budget "robocuts" under certain circumstances. The "robocuts" could slash public education funding several times in the middle of any given school year.
Assembly Member Keene and the governor's finance director, former lawmaker Tom Campbell, sought to defend the proposal, but panel members Assembly Members John Laird and Noreen Evans asked the pointed questions that revealed how devastating the proposal would be, especially to public schools and health care. Assembly Member Evans feared the proposal would accomplish the goal the governor spelled out in an editorial board meeting: "he wants to use these cuts to starve the public sector … public education and health services," she said.
Here's an update on the CTA-opposed bills that comprise the governor's "reform" package:
ACAx1 4, by Assembly Member Rick Keene (R-Chico),
has now had more than a month's worth of testimony-only hearings in the Assembly Special Session Budget Process Committee. The bill would gut Proposition 98's minimum funding guarantee and let the administration cut public education and state programs at least twice in a given year.
ACAx1 1 by Assembly Member Keith Richman (R-Northridge)
remains in the Assembly Public Sector Committee. The bill would decimate public employee pensions by converting both CalSTRS and CalPERS from stable defined benefit plans into 401K style programs with no guaranteed payments.
( In a related story , Senate Pro Tem Don Perata has reiterated his position that the Senate will not confirm any of the governor's CalSTRS nominees until the governor explains why he fired his four pension board nominees who performed their fiduciary duties by voting against his pension conversion plan.)
The "merit pay/ due process attack" bill, CTA-opposed SCA1x 1 by Sen. George Runner (R-Antelope Valley), would impose merit pay and gut teachers' due-process protections. It is still in the Senate Education Committee.
The "legislative redistricting bill," ACAx1 3 by Assembly Member Kevin McCarthy (R-Bakersfield), still hasn't been heard yet in the Assembly District Representation Committee