February 25, 2010
LAO: Schwarzenegger's education budget could 'unravel'The nonpartisan Legislative Analyst's Office, in a report released today, said Gov. Arnold Schwarzenegger's proposed spending plan for K-14 schools contains risky assumptions that could ultimately undermine the state budget.
"The Governor's overall (K-14) funding plan is tenuously held together," the LAO report states. "As a result, the plan could quickly unravel under certain circumstances related to constitutional interpretation, revenue assumptions and federal requirements. If any of the Governor's key assumptions do not come to pass, then the plan would no longer be workable."
LAO notes that the governor's budget relies on a controversial interpretation of Proposition 98 that reopens last summer's dispute over how much California owed schools then and in future years. (Proposition 98 is the 1988 constitutional amendment that dictates the minimum level of funding for K-14 schools.) Schwarzenegger's budget reclassifies education funds from 2008-09 so as to reduce the amount the state would have to give schools in 2009-10 and 2010-11.
Education groups on Wednesday gathered at the California Teachers Association office in Sacramento to charge that the governor had reneged on his agreement in last year's budget. While education leaders said they hoped not to litigate the issue, a CTA attorney was among the participants in the press conference, and they said they believed they would prevail if they had to ask the courts to hold Schwarzenegger to last year's budget deal. ...........(more)
The complete piece is at:
http://www.sacbee.com/static/weblogs/capitolalertlatest/2010/02/lao-says-govern-1.html