ELA files lawsuit challenging Prop. 98 manipulation
Failure to make adjustments in Prop. 98 Minimum Guarantee Sets Dangerous Precedent
Published: September 23, 2015
On September 22, the California School Boards Association’s Education Legal Alliance filed a lawsuit against the State of California over the unconstitutional manipulation of the Proposition 98 guarantee.
Proposition 98 was approved by voters in 1988 to ensure a guaranteed minimum spending level each year for K-12 public schools and community college districts by providing them with a stable and predictable source of funding that grows with the economy and state General Fund revenues.
“This lawsuit is about protecting students and the educational programs funded by Proposition 98,” said CSBA President Jesús Holguín.
State spending on childcare has historically been included within the Proposition 98 minimum guarantee funding. In 2011, however, the State moved most of the funding for childcare outside of Proposition 98 for state budget purposes. In making this change, the State did readjust or “rebench” the minimum guarantee to reflect the removal of childcare from within Proposition 98.
In the current 2015-16 budget, the State added some childcare spending (approximately $145 million) back into Proposition 98, but did not rebench the minimum guarantee calculation higher to reflect this additional expense.
CSBA’s lawsuit alleges that the State’s failure to rebench, which would have increased the minimum guarantee, is an unconstitutional manipulation of Proposition 98.
“The issue here is about the integrity and promise of Proposition 98 — this manipulation sets a dangerous precedent that cannot go unchallenged,” said CSBA ELA Director and General Counsel Keith Bray.
The lawsuit was filed on behalf of CSBA’s Education Legal Alliance by Olson Hagel & Fishburn LLP in Sacramento County Superior Court.