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Governor’s May Revision could provide needed financial relief for public schools


FOR IMMEDIATE RELEASE

Budget plan penalizes K-12 education if the Governor’s revenue initiative fails at the polls

WEST SACRAMENTO, CA – If the May Revision serves as the foundation of the 2012-13 Budget Act, K-12 school districts could see an increase in funding – a welcomed relief from the $20 billion barrage of cuts and deferrals that public schools have weathered since the state’s economic decline in 2008. However, the boost in funding is contingent on voters approving a new revenue initiative in November. If the Governor’s revenue initiative fails at the polls, the trigger cuts take effect and school districts will lose. The May Revision trigger cuts translate into another $5.5 billion funding reduction. Moreover, the May Revision includes a problematic new student funding formula that further contributes to certain schools receiving less, not more, funding to provide educational programs for the state’s more than 6 million school-age children. 

“While we applaud the Governor for his efforts to support public education in the May Revision, K-12 education is slated for a large percentage of the trigger cuts identified to close the state’s expenditure/funding gap if a new revenue initiative doesn’t receive voter approval at the polls in November. This is concerning given that public schools have taken a disproportionately high percentage of budget cuts and deferrals since the state’s economic decline,” lamented Jill Wynns, president of the California School Boards Association (CSBA). 

“We know the Governor cares about K-12 education. In my meetings with the Governor, he acknowledges that a strong K-12 public educational system is foundational to our state’s future, and he wants to provide schools with the funding needed to operate effective educational programs. Yet, with the state now facing a $16 billion deficit, he is forced to make difficult decisions,” explained Vernon M. Billy, CSBA executive director. “CSBA’s main concern, at this time, is that if public schools don’t get revenue, the long-term fiscal implication is extremely dire. Many school districts are already struggling to provide basic educational programs for students.”

According to Billy, of the 967 school districts required to file semiannual reports on their financial status, 172 have declared or are on the verge of declaring fiscal insolvency, and will be unable to meet their financial obligations this year or in the next two fiscal years. “We have never seen so many public schools teetering on the brink of disaster due to deep state revenue reductions. More districts could find themselves in this predicament if the trigger cuts take effect. Who will bail out these insolvent districts? Wall Street? What happens to the children who attend the schools that may be forced to close their doors? The Governor has placed the decision in the hands of the people. My message to the people of California is that the K-12 public educational system – which was once among the best in the country – is hemorrhaging,” Billy added.

Billy also sees larger policy implications if the state implements the proposed trigger cuts. “If schools shoulder the brunt of the cuts proposed in the May Revision, school districts will be forced to take drastic action. Students are already losing out on valuable instructional time and learning with the staff furloughs instituted statewide due to the current $20 billion funding shortfall. The projected additional $5.5 billion funding shortfall translates into three weeks off the school year! What are the learning implications for students? What will working parents do with their children, especially at a time when few public schools can afford to provide summer school or other summertime enrichment programs? This one bad policy decision – additional excessive funding cuts to schools – will trigger other negative consequences: excessive learning loss, potential increases in juvenile delinquency, and more,” he added. 

In addition to the direct funding reductions that will occur by not honoring the Proposition 98 funding guarantee if the trigger cuts take effect, the May Revision includes a new weighted student funding formula that creates a deep funding chasm, with some districts receiving even less money to operate school programs. CSBA urges the Governor to postpone the implementation of the proposed new formula to provide for further study and analysis. 

“We don’t need any schools receiving even less funding. We need them receiving as much money as possible to continue to make progress on student learning goals and to provide a quality education to students. It’s time the Legislature prioritize our children or we as a state will suffer the ramifications,” Wynns added.

CSBA is the nonprofit trade association representing the elected officials who govern public school districts and regional educational agencies. With a membership of nearly 1,000 educational agencies statewide, CSBA brings together school governing boards, and district and county office administrators to advocate for effective policies that advance the education and well-being of the state’s more than 6 million school-age children.  Learn more at www.csba.org.    

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