CSBA, Education Legal Alliance File Lawsuit to Compel Payment by State for Mandates on K-12 Schools

2007-08 mandates cost $160 million, only $38,000 appropriated in budget

The California School Boards Association’s Education Legal Alliance, along with the San Diego County Office of Education, Riverside Unified School District, San Jose Unified School District and Clovis Unified School District as co-petitioners/plaintiffs, on November 21 will file a lawsuit against the State of California challenging its authority to defer state mandate payments to public schools. The case seeks to compel the state to comply with its constitutional obligation to fully reimburse school districts and county offices of education for all new programs or higher levels of service imposed upon them by the state.  The case also seeks to set aside as unconstitutional those provisions of law by which the state has justified the “deferral” of its debt to school districts/ county offices.

“The state expects schools to foot the bill for millions of dollars in mandated costs that they do not fund and rarely pay back,” said Dr. Kathy Kinley, CSBA president.  “Although the cost of the K-12 mandates for 2007-08 is estimated at $160 million, this year’s state budget appropriates only $38,000, or $1,000 per mandate statewide.  The carry-over debt from prior years is approximately $415 million.”

Background: 
For a number of years, CSBA and its Education Legal Alliance, as well as other education associations working on the state budget, have questioned the authority of the state to essentially defer payment of the 38 K-12 reimbursable state-mandated programs. 

Starting with the 2002-03 fiscal year, the Legislature has failed to include an appropriation in the budget act to fully fund the mandate claims submitted by school districts/county offices.  Instead, the Legislature has included in the budget acts, and the Governor has approved, only $1,000 per mandate, even though the costs of these mandates, and the claims submitted, far exceed that amount.  The carried-over debt is known as the “credit card debt.”

The 2006-07 state budget appropriated some $900 million to fund the accumulated debt and added some funding for 06-07 mandates.  However, this appropriation failed to pay off the past debt and was inadequate to cover the current year obligation.  In the 2007-08 budget, the Legislature and the Governor have again pulled out the “credit card,” thus, deferred payments are a reality along with a continuation of previous debt incurred.

Summary of Case:
In 1978, California voters approved Proposition 13 which imposed significant constitutional limitations on the ability of state and local governments to impose new taxes, especially increased property taxes.  A year later, constitutional spending limits were imposed on state and local governments, including school districts.  In order to prevent the state from shifting financial responsibility for new programs or services to local entities (whose taxing powers had been limited via Proposition 13), the voters imposed a constitutional requirement that whenever the state mandates a new program or
higher level of service on any local government (including school districts), it must reimburse the local government for the costs incurred.

Thus, school districts/county offices are being forced to bear the costs of new programs and higher levels of service mandated by the state, until some future time when the state chooses to appropriate funding.  The last time this “credit card” debt occurred, school districts/county offices had to wait five fiscal years before any effort was made to pay off the deferred debt.

Status of the Case:
The lawsuit will be filed November 21 in San Diego County Superior Court and the state has 30 days to respond. 

About the Education Legal Alliance:
CSBA’s Education Legal Alliance initiates and supports litigation in cases of statewide significance to all California schools for CSBA. This consortium of school districts, county offices of education and ROC/Ps voluntarily join together to impact education issues and case law. Learn more about the Alliance here.