6/7/08

Legislative Information Alert: Legislative Subcommittees Propose More Funds for Education

Compared to the May Revision of the state budget released by the Governor last month, State Assembly and Senate Budget Subcommittees have now put forward initial proposals that would significantly increase funding for education.

The Senate Budget Subcommittee on Education Finance voted Wednesday to provide $3 billion more than the Governor in ongoing Proposition 98 funding ($59.769 billion, compared with $56.769 billion). Last week, the Assembly Subcommittee on Education Finance voted to provide $59.05 billion, which is also a substantial increase over the Governor’s proposal.

Both the Assembly and Senate proposals reject the severe cuts to education proposed in the May Revision. Both plans move the state towards a balanced budget by proposing additional revenues, although specific details of the revenue sources have not yet been released.

Both the Senate and Assembly plans propose full funding for revenue limits and ADA growth, and they reject the Governor’s across-the-board reductions to categorical programs. In addition, the Senate proposes a 3.68% cost-of-living adjustment (COLA). The Assembly proposed a 1.6% COLA. The Governor’s May Revision proposed no COLA.

What’s the next step in the budget process?

All other Senate budget subcommittees are expected to conclude their work this week. A Budget Conference Committee will then meet to negotiate differences in the proposals between the two legislative houses. Ultimately, the “Big Five” – which includes the Governor and Republican and Democratic leaders from both houses – will meet to negotiate a deal that can be brought to the floor in both the Assembly and Senate for a vote. The budget requires a two-thirds majority vote to pass in each house.

What do these latest developments mean?

The proposals by the legislative subcommittees are a positive development. They reject the severe cuts to education proposed in the Governor’s May Revision. Both plans move the state towards a balanced budget by proposing additional revenues, though specific details about the revenue source have not yet been provided. (Yesterday, Assembly Speaker Karen Bass indicated the Assembly would look to close certain tax loopholes and rely on changes to the state lottery. In the May Revision, the Governor proposed borrowing future revenues from the state lottery as a means of increasing overall state revenues.)

We are still in the process of analyzing the potential impact of these legislative committee proposals on other children’s health and social services programs for which the Governor proposed deep cuts in his May Revision.

What can you do next?

PTA members throughout the state have done a great job of communicating your concerns about the state budget and the impact of the proposed cuts to education and children’s services. It’s essential to understand that the state budget process is far from over. These latest proposals from the legislative subcommittees are just that – proposals. In many respects, the real negotiations in Sacramento are just now getting underway. It is vital that PTAs remain strong in raising our voices on behalf of all children.

You should continue to contact your senate and assembly members, especially on Fridays when they are at “home” in their local districts. Continue to meet with them in-person, and to send emails, faxes, letters, and to phone their offices. Urge them to:

• Work together towards a final budget agreement that does not hurt children. Our children did not create this budget deficit and their future should not be undermined because of it.
• Reject a cuts-only approach to balancing the budget

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