Plusses and Minuses
CTA representatives are pleased that Gov. Arnold Schwarzenegger’s proposed January budget fully funds a 4.04% Cost-of-Living Adjustment (COLA) for all education programs and includes the first $300 million installment of a $2.9 billion state obligation to public education. Association analysts note that the 2007-2008 proposed spending plan, which the governor unveiled during a January 10 news conference in Sacramento, would provide $56.8 billion in Proposition 98 funding for K-14 public education. (Editor’s note: see the Close-up below for a detailed discussion of the budget plan’s details.)
The proposal would also fund the first-year implementation of CTA’s Quality Education Investment Act (SB 1133). That measure aims to provide resources to help educators and schools serving low-income and minority students and English learners close the achievement gap. The appropriations will go to reduce class size, improve teacher and principal training, and hire more school counselors.
The funds for SB 1133 derive from a settlement reached with the administration to a lawsuit filed by CTA in response to the governor’s refusal to pay back nearly $3 billion borrowed from the Proposition 98 trust fund to help balance the budget. The settlement was reached last year, and the agreement calls for a $300 million annual repayment beginning in 2007-2008.
CTA representatives are also cheered by the governor’s proposal to increase funding for career and technical education by $52 million, something supporters say will help keep youngsters in school and better prepare them to compete for jobs in the 21st century, irrespective of whether they are college-bound.
The Association also acknowledges the governor’s commitment – not included in the budget but announced during his state-of-the-state speech -- to expand healthcare coverage to all Californians, especially children.
At the same time, CTA representatives say several elements of the governor’s proposal raise immediate concerns. One element would effectively reduce the Proposition 98 minimum guarantee by moving home-to-school transportation programs and funding from Proposition 98 to the state’s Public Transportation Account. The state’s non-partisan legislative analyst has opined that this provision may not be constitutional.
CTA is also reacting strongly to the budget’s proposal to increase student fees at the California State University. The governor’s plan would boost the fees by another 10% in 2007-2008, marking a 94% increase in these fees since 2002.
The governor’s unveiling of his January proposal begins a six-month-long debate over how the state should allocate its resources for the coming year. His plan now goes to both houses of the legislature, which will hold hearings on its various provisions. In May, the governor is slated to offer up a revised spending plan based on updated estimates of forthcoming revenues. The release of the May Revision generally increases the pace of the fiscal debate. Ultimately, lawmakers have until June 15 to send the governor a final spending proposal. The state constitution gives the governor until June 30 to sign the measure into law to take effect on the July 1 start of the new fiscal year.
All during the process, CTA will closely monitor the progress of the spending plan and lobby for changes that will support educational excellence.