Education Coalition holds “Day of Action” on budget

The Education Coalition held a statewide “Day of Action” on Sept. 5 to call on policymakers to pass a responsible budget that invests in students, schools and California’s future.

The event featured rallies and press conferences all across the state, to tell state leaders to pass a responsible, compromise budget plan that includes a balance of revenue increases and cuts, to avoid billions in cuts to schools and students.

The coalition has opposed irresponsible, shortsighted plans that would undermine the Proposition 98 minimum school funding guarantee; cut funding to schools by nearly $5 billion; and rely on risky borrowing schemes that jeopardize California students’ education.

As the state budget stalemate lingers, critical school programs are not being funded and California students continue to be shortchanged. More than half a billion dollars in school funds have already been delayed. If the state fails to pass a responsible compromise budget plan, schools will be denied an additional $2.5 billion in funding in mid-September.

Meanwhile, Republicans put forth a budget proposal that was voted down. Superintendent of Public Instruction Jack O’Connell issued a statement on the GOP budget proposal.

“The Senate wisely defeated an irresponsible proposal that would have harmed California’s six million public school students and jeopardized the economic viability of this state,” O’Connell said. “Any budget that relies on drastic cuts, costly borrowing, and arbitrary spending caps ignores today’s needs and limits tomorrow’s potential.

“California is 46th in the nation in terms of per-pupil spending; it is not only shortsighted but shameful to further reduce spending for our students and schools. All over this state, school districts are facing rising prices for food, transportation, and employee health care while grappling with budget uncertainty and facing delayed payments due to this budget impasse. The cuts in this proposal show a disregard for the struggle public schools are going through.”

ACSA’s Governmental Relations team has issued a budget advisory to school districts in conjunction with the California Association of School Business Officials, California School Boards Association and California County Superintendents Educational Services Association. The advisory describes some of the key impacts on schools and suggests courses of action. The advisory can be accessed on the ACSA Web site at www.acsa.org.

The advisory suggests three courses of action for districts to consider:

• Closely monitor cash flow. LEAs should monitor cash flow conditions on a weekly basis and plan for any anticipated shortfalls.

• Develop contingency plans should a cash shortfall occur. Options available to LEAs include internal or external borrowing. Current law allows LEAs to temporarily transfer up to 75 percent of monies held in any special fund or account to the general fund to cover obligations. The code specifies how and when these funds need to be repaid with interest. Current law authorizes LEAs to seek external borrowing to cover temporary cash deficiencies. The most common are tax and revenue anticipation notes, borrowing from county offices of education, and borrowing from county treasurers. LEAs should carefully consider their options.

• Work closely with your county office of education. Keep your COE abreast of your situation and any possible implications this situation may pose on your current and/or out-year financial condition.

The Education Coalition’s position is that the Legislature needs to pass a responsible budget that doesn’t rely on gimmicks and faulty fixes that only make the state’s budget problems worse. It’s time for a real budget solution, and for state’s leaders and policymakers to stand up and truly invest in California’s students.

Rallies, press conferences, speeches, picketing, protests, demonstrations and sign waving took place all across the state on the Day of Action, including Fremont, Fresno, Glendale, Lancaster, Los Angeles, Modesto, Pomona, Richmond, Sacramento, San Francisco, San Jose and Walnut Creek.

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