Finally, after a record-busting 85 days, a state budget was passed and signed. The budget is not particularly good news for education or anyone.
Despite the long delay in getting a budget done, no one seems pleased with the final product. Unfortunately, it puts off the essential budget reform needed to get the state out of the structural deficits it faces every year.
Legislative Democrats caved in to Republican demands for no new revenues, despite the $15.2 billion hole in the budget. Republicans caved in to the resulting need to do some borrowing, since there was no way to solve a budget deficit that big through cuts only. And the governor signed the budget, despite the fact that it did not contain the structural budget reform he had called for.
After passing an initial budget package that had been roundly criticized, the Legislature gave in on Gov. Schwarzenegger’s demand that restrictions be placed upon the new rainy day fund and his demand that they drop the acceleration of state withholding taxes. These were both items contained in the original package the Legislature passed, and dropped or changed at the last minute to avoid the governor’s veto. Overall, education is funded at $58.1 billion in the final budget package, which fully funds the Proposition 98 minimum guarantee.
ACSA President Frank Gomez noted that education has been shortchanged several years running in the state budget process and the education community has had enough.
“This year the education community rallied throughout the state against cuts and for increased revenues,” Gomez said. “From Siskiyou to San Diego counties, parents, grandparents, educators, students and other stakeholders actively opposed further cuts to schools.
“Despite our collective efforts, the governor and lawmakers shortchanged our schools and our students in adopting the 2008-09 state budget. State political leaders opted for cuts and short-term fixes rather than a balanced approach and real solutions that invest in California’s future. The 2008-09 budget solution leaves schools vulnerable to mid-year cuts and more. Enough is enough, and together as education leaders we must continue our efforts to oppose any additional cuts to our schools.”
Superintendent of Public Instruction Jack O’Connell issued a statement on the budget and its impact on public schools. He expressed relief to finally have a budget, but noted that no one would be applauding it.
“With costs continuing to rise, budgets being squeezed and the fact that this budget is predicated on uncertain revenues, the signing of the budget brings only temporary relief for local education agencies,” O’Connell said.
The final budget included some shifts and transfers. One item of interest to education is the shift of 5 percent of local redevelopment funds to schools and community colleges. This amounts to $350 million. During the signing, Schwarzenegger used his veto power to blue-pencil $510 million from the budget. Most of these items did not affect education and primarily dealt with tax assistance for seniors and local transit grants, although there were some cuts to resources for AVID and nutrition programs.
The final budget contains aspects of budget reform and changes to the state lottery that must go before the voters in a special election to be scheduled sometime in 2009. The timing of that election has yet to be announced.