When the state Legislature passed its budget in February to close the state’s $42 billion deficit, many Californians heaved a sigh of relief. The budget’s passing indicated that the state economy could hopefully begin the slow and arduous journey to recovery.
For the state’s teachers, however, the budget’s passing was a call to arms.
To balance the budget, the Legislature approved about $12.5 billion? in tax increases. The body also approved more than $15 billion in spending cuts, the majority of which were related to education. The cuts reduced funding for education programs, and led school districts throughout the state to threaten to lay off thousands of teachers and additional staff members.
In response to the cuts and ensuing pink slips, school administrators, teachers, and other community members came together in protest. The California Teachers Association in February even went as far as threatening the legislature with a lawsuit if funding wasn’t returned to schools.
“It’s pretty unbelievable what the Legislature did, but they did it and now we have to live with it,” David A. Sanchez, California Teachers Association president and Santa Maria educator, told the Sun in a recent interview.
Sanchez said, according to Proposition 98—an amendment to the state constitution that mandates minimum spending levels on education—the Legislature owes schools approximately $9.3 billion in funds.
To compensate state schools for reduced funding, the Legislature included in its budget package Proposition 1B, which proposes a payment plan to reimburse the $9.3 billion.
Proposition 1B is one of six propositions, numbered 1A through 1F, that the legislature placed on a special election ballot scheduled for May 19. The propositions are all part of the Legislature’s package to balance the budget. If passed, three of those propositions—1A, 1B, and 1C— would directly affect the future of state education funding.
According to documents on the California Secretary of State’s website, sos.ca.gov, Proposition 1B authorizes the state to disburse $9.3 billion to local school districts and community colleges through supplemental payments, scheduled to begin annually in 2011 and continue through 2013 until all of the funds are disbursed.
Money for those payments would come from the state’s Budget Stabilization Fund, also known as the “Rainy Day” Fund, as set out in Proposition 1A. If passed, the proposition would increase tax revenues to be set aside. The additional taxes would be used for future economic downturns, and provide funding for education, infrastructure, and debt repayment.
“It’s important that people realize that Proposition 1A is the funding mechanism for Proposition 1B,” Sanchez said.
“If the propositions don’t pass, schools could very easily end up shutting their doors,” he explained. “And we’d see the number of teachers getting laid off increase even more.”
Finally, Proposition 1C, also known as the Lottery Modernization Act, would allow the state to update regulations to the California Lottery. In doing so, the state would be able to borrow more than $5 billion in future lottery profits to close the budget deficit. The act would also protect school funding currently provided by lottery revenues.
Under current law, approximately 66 percent of funds generated from sales of lottery tickets are spent on prizes and operating maintenance. The remaining funds (34 percent) go to state schools.
While the percentage might seem substantial, Sanchez said the money actually does surprisingly little to cover the state’s education costs.
“The lottery is not the funding mechanism for our schools. It’s just a way for the government to supplement us, and it’s minuscule at that,” he said.
According to the California Secretary of State website, the lottery sold about $3 billion in tickets in fiscal year 2007-08. The lottery paid out $1.6 billion in prizes and spent $380 million on operating expenses.
The remaining $1.1 billion went to public schools and junior colleges based on attendance levels. Those funds, however, only represent about 1 percent of the state’s education budget.
Under Proposition 1C, lottery profits would no longer be paid to schools. Rather, the funding would come from the General Fund as guaranteed annual payments of $1.1 billion.
If Proposition 1C doesn’t pass, schools will continue to receive funding from the lottery. The act’s failure, however, could prompt additional funding problems for schools and the state as a whole.
In an interview with the Sun, State Sen. Abel Maldonado (R-Santa Maria) said without Proposition 1C “there will be a $5 billion hole in the budget.
“If any of the propositions fail to pass, we’re going to have another huge budget deficit, and God knows where we’re going to be able to cut from,” Maldonado said.
State educators, however, have a good idea where most of those cuts are going to come from: the classroom. And if that’s the case, California Teachers Association president Sanchez said the state is going to come up empty-handed.
“There’s no more meat on this bone to cut,” Sanchez said. “The only thing left to do is amputate.”
Contact Staff Writer Amy Asman at aasman@santamariasun.com.
This article appears in Apr 2-9, 2009.