PTA Legislative Update the California State Budget

CUCPTSA LEGISLATION NEWSLETTER – JUNE 2008

The California State Budget

In January, Governor Arnold Schwarzenegger presented the 2008/09 budget proposal. In response to a projected revenue deficit of $14 billion, the governor made across-the-board cuts of 10% to all state departments, including K-12 Education.

On May 14, the governor issued his May Revision of the budget. The state budget gap has grown to $15.2 billion dollars and the overall budget still reflects cuts to all departments. However, there is change in the K-12 Education portion of the budget. The revised budget includes:

 No suspension of Proposition 98 – minimum guarantee met under Test 3  Proposition 98 funding increases from $55.6 billion (‘07/08) to $56.8 billion (‘08/09)  Restores Special Education cuts of $238 million from January budget  $10.3 million still in the budget for the student longitudinal data system (CalPADS) and the integrated teacher data system (CalTIDES)  Cuts to Categorical Programs of 6.5%  No Cost of Living Adjustments (COLA)  Governor recommends “flexibility” options for school districts to use funds that are normally restricted to specific areas for general funds spending

Responses to the May Revision

 Legislative Analyst’s Office (LAO) has reservations regarding the governor’s plan to modernize the lottery and raise cash upfront from securitizing future lottery revenues and putting the funds into a “rainy day” account.  Jack O’Connell, State Superintendent of Public Instruction says that schools still must “absorb cuts to specific programs” and that many teachers and staff will still face layoffs and class size are likely to increase.  K-12 Education still faces a shortfall of $3 billion in unfunded cost-of-living increases (COLA) and $1 billion (approximately 6.5%) in cuts to categorical programs say state education officials.  Pam Brady, President of California PTA – “PTA acknowledges that the latest proposal meets minimum education funding requirements but, more importantly, the proposal still makes drastic cuts to many vital programs that help student achievement like class size reduction, instructional materials, and career technical education programs.”

What does the May Revision mean to Capistrano Unified School District?

The governor’s January budget proposal required $28 million in cuts to CUSD’s 2008/09 budget. The May Revision restores about $8 million of these reductions but still necessitates cuts of $20 million for next year. Mr. Woodrow Carter, CUSD superintendent, at the CUSD June 2nd meeting of the board of trustees presented the following budget “assumptions” based on the Governor’s May Revise of the budget:

 Increase to Revenue Limit funding from the January budget $ 6.88 million  Special Education funding “flat” from 2007/08, but no COLA $ 1.50 million  Categorical Flexibility (using funds from one category to another) $ 0.40 million  Sale of surplus property $ 1.13 million  CUSD Foundation fundraising campaign $ 1.00 million  Total funding restored to CUSD $10.91 million As of 6/2/08, the CUSD Foundation had raised $887,600. The campaign will continue until June 16th when the board of trustees meets to approve the final budget for 2008/09. Ron Bennett, CEO of School Services of California, an educational consulting firm, has examined state budgets from the last 25 years and has determined that the final budget approved by the legislature has never been worse than the May Revise. With all this information in mind, the board of trustees approved rescinding the lay-off notices to all teachers with permanent or probationary status thereby restoring 269 teacher positions. There are still 131 temporary teachers whose one-year contracts have not been renewed for next year. These teachers will be rehired on a case by case basis to fill any positions open due to teachers taking leaves of absence or special assignments.

However, with cuts in the CUSD budget of $19-20 million dollars compared with 2007/08, lay-offs are still being planned in the following categories:

 Bus routes reduced by 70% -- 57 positions  22 groundskeepers  7 positions in Maintenance and Operation Services  27 administrators  12 district level classified positions  36 positions in Instructional Support Services  Total Reductions of Positions = 161

What happens next in Sacramento?

The legislature will be reviewing the governor’s May Revision and looking at other alternatives as well. The Assembly Budget Subcommittee #2 for Education Finance approved the following plan on 5/30/08:  Put an additional $2.4 billion over the Governor’s May Revise into the K-14 Education Budget.  Fully restored the 6.5% cuts to categorical programs  Provided $900 million to partially fund COLA at 1.6%  Restored the Governor’s cut to childcare  Rejected categorical flexibility proposal as not needed.

The Senate Budget and Fiscal Revue Committee met on June 2nd and was briefed by staff on the LAO’s revenue-increasing proposals for 2008/09. After the Assembly and Senate budget committees vote on the budget, the “Big 5” (Governor, Speaker of the Assembly, President Pro Tempore of the Senate, Assembly Republican Leader, and Senate Republican Leader) will meet to negotiate the budget. The budget will then go to both houses of the legislature for adoption with a 2/3 vote. The approved budget goes to the governor for signature. This could happen as early as June 30th (target date) or as late as September or October. The new fiscal year begins July 1st.

Summer Plans for the CUCPTSA Legislation Team

The CUCPTSA Legislation Team will continue to keep our message in front of legislators. A group of 35 parents and two students from CUSD visited Sacramento for two days in late May to learn more about the status of the budget (see below for more details). In addition, PTA legislation reps will make at least two trips to Sacramento during the summer to meet with leaders in the legislature. The team will also be working through the summer meeting with local legislators as well as leaders in Sacramento, staying up to date on budget negotiations and sharing that information with parents.

EXECUTIVE SUMMARY from California Adventure – May 27 & 28, 2008

35 schools were represented: 5 High Schools – Aliso Niguel, Dana Hills, San Clemente, San Juan Hills & Tesoro 8 Middle Schools – Aliso Viejo, Arroyo Vista, Bernice Ayer, Marco Forster, Las Flores, Niguel Hills, Shorecliffs & Vista del Mar 22 Elementary Schools – Ambuehl, Arroyo Vista, Truman Benedict, Bergeson, Castille, Chaparrel, Concordia, Crown Valley, Hidden Hills, Las Flores, Las Palmas, Malcom, Moulton, Oso Grande, Palisades, San Juan, Tijeras Creek, Viejo, Vista del Mar, Wagon Wheel, George White and Wood Canyon

37 Attendees: 29 Legislative Chairs; 3 PTA Presidents; 2 Students; 1 CUCPTSA member; 1 unit EVP & 1 Ca Adv Chair

Kim Anderson – CUCPTSA Legislative Chair Lori Abbott; Kara Ahmann; Peggy Anderson; Rocky Blumen; Monica Burick; Carla Crehin; Sue Dennis; Sarah Efthymiou; Sabrina Medrano Erb; Kathy Fischer; Gail Grigaux; Deb Hagman; Richard Klevit; Erin Kutnick; Maureen Lynds; Alli Maier; Kathy Masters; Christina Molina; Jennifer Moore; Christine Nowland; Judith Nowland; Corri Roe; Maryanne Rose; Stephanie Samia; Lisa Scharmann; Fran Sdao; Melanie Shimano; Maureen Sidaris; Kathy Spencer; Cheryl Stein; Jen Stenlake; Kathi Thomas; Jody Vaughn; Julia Walsh; Cindy Wright and Karen Yoder.

Held a total of 13 meetings: Karen Bass – Speaker of the House Ron Bennett – President, School Services of California Peter Birdsall – School Innovations & Advocacy Pam Brady – State PTA President & Pat Dingsdale – State PTA Director of Legislation Rachel Ehlers – LAO, Policy & Fiscal Analyst for K – 12 Education Toby Ewing – Research Director, California Forward David Long – California Secretary of Education Brett McFadden – ACSA Dana Mitchell – A/M Betty Karnette’s office Paul Navarro – Deputy Legislative Secretary, Office of the Governor Rick Simpson – Deputy Chief of Staff, Speaker’s office Tom Torlakson - Senator Dan Weintraub – Columnist, Sacramento Bee

Highlights:  Group meeting with Speaker, Karen Bass.  Having Ron Bennett speak to us at dinner with dinner guests Paul Navarro and Rick Simpson. All three of them sat at different tables and graciously agreed to move to other tables between courses so more of our group would have the opportunity to speak to them directly.  Having Paul Navarro and Rick Simpson participate in the song, “Hey There Sacramento” with our singers, Alli Maier & Kathy Fischer at our breakfast meeting.  Taking a VIP tour of the Capitol, as arranged by A/M Mimi Walters office. Things we heard consistently:

 Capistrano Unified PTA Legislation Team is well known in the Capitol for our advocacy efforts. Keep the pressure on – especially over the summer!  The amount proposed for education by Governor Schwarzenegger in his May Revise will be at least that, if not more.  The May Revise, while better than the Governor’s January proposal for education, is still a $4 billion cut  Revenue has to be part of the solution because cuts alone won’t do it.  We must invest in the whole child – not just education  2009 -10 is also likely to be very tough financially  The state legislature is very polarized  We want everything in California – high level of service, but don’t want to pay for it  Nobody cares for the Governor’s Budget Stabilization Act or his lottery proposal. However, nobody yet has a better idea as to how to come up with the revenues generated by the lottery proposal  California is at the bottom of the nation in Spending and performance. In 1973 we were in the top 5% of the nation in achievement and spending. Today we are at the bottom for everything - including spending and achievement. That is unacceptable when California has the 8th largest GDP in the world.

Memorable Quotes:  “June 30 is the symbolic deadline for the budget but the real deadline is the end of the public’s patience.” Dan Weintraub, Sacramento Bee  “Outside of Sacramento, most people are much more moderate and this conversation should not be about Democrats and Republicans but about the future of California.” Rick Simpson, Deputy Chief of Staff to Speaker Bass.  “We need to prepare a pathway to success for every child.” Senator Tom Torlakson