2007: Stage is set in Sacramento and Washington 

Editor’s note: Last month, CSBA’s Governmental Relations department took a look at the big issues of 2006. This month we look ahead, offering an analysis of the issues expected to top the agenda in 2007.

The leadership in the Capitol provides a good starting point for any discussion of what 2007 will hold. Political pundits have debated how the recent election could change the leanings of the Legislature and the governor, though most agree that the election was a reaffirmation of centrist proclivities.

Unlike at the federal level, there will not be any changes in the majority party in the state Legislature, and Democratic lawmakers Don Perata and Fabian Núñez will stay on as the leaders of the Senate and Assembly, respectively. There was a recent change in leadership for the Assembly Republicans; they chose Mike Villines, who was just re-elected to his second term representing Fresno, to succeed George Plescia of San Diego as minority leader. Dick Ackerman is expected to remain the Senate Republican leader.

Every incumbent legislator who sought re-election won, and balloting for open seats failed to change the established party-line splits. Democrats continue to maintain a 48-32 advantage in the Assembly and a 25-15 advantage in the Senate, although Republicans nearly managed to take retiring Democratic Sen. Joe Dunn’s seat in the 34th District.

The question remains how Gov. Arnold Schwarzenegger will govern during his second term. Will he continue on the path of bipartisanship, which by all accounts is why he was able to rebound from the special-election defeat of 2005 and score a landslide victory in his bid for a second term as governor? Only time will tell.

The road ahead
The current budget provided significant new resources for schools. The 2007-08 budget is not expected to match that growth, but there may be some additional resources despite previous indications that even a cost-of-living adjustment would be difficult.

Other issues expected to come up in Sacramento include:

• Career and technical education: This will almost surely be a hot topic, and the governor is widely expected to include it in his policy agenda. Areas that need to be addressed include the need for increased funding; staffing challenges resulting from federal requirements for highly qualified teachers; and implementation of the newly reauthorized Perkins Act, at both the state and local levels.
• Academic accountability systems: Efforts to align the state’s Academic Performance Index and the federal government’s measure of adequate yearly progress are likely to be on the docket, building on the minor changes made in the last legislative session.
• Instructional materials: There will likely be renewed efforts to provide more flexibility for schools by providing greater choice for districts in their selection of materials.
• Credentialing reform: Calls to eliminate the Commission on Teacher Credentialing and allow county offices of education or other local agencies to issue credentials may be pursued.
• The State Teachers Retirement System: The STRS board is expected to sponsor legislation to address the unfunded liability that exists in the defined benefit program.
• GASB 45: The Legislature will continue to seek ways to address this Governmental Accounting Standards Board rule that requires all public agencies, including school districts, to begin reporting their liabilities for post-retirement benefits in their annual financial statements beginning in fiscal year 2007.
• Healthcare: Proposals expected to accompany the governor’s budget proposal in January could include expanding school-based clinics.
• School district governance: Further attempts to encroach upon school district governance are expected, as other mayors may seek more authority over the schools in their cities following Mayor Antonio Villaraigosa’s partial victory in the Legislature over the Los Angeles Unified School District; Fresno Mayor Alan Autry, for example, made clear during that debate that he would like to control Fresno Unified School District. In addition, legislators may seek greater involvement by county superintendents in districts’ academic affairs.

CSBA’s own agenda extends beyond those topics. We will continue to push for relief and assistance for districts with declining enrollments; to address special education issues, including full funding so districts do not have to siphon revenues from their general funds to bridge funding gaps; to address charter school issues; and to consider changes in graduation requirements involving the high school exit exam.

Adequacy studies
It is expected that results of the studies on school finance and governance requested by the governor, the Legislature and Superintendent Jack O’Connell will be released sometime in the spring. Twenty studies funded by five foundations are looking at various aspects of school funding and governance. The effect of those studies on legislation will depend on their findings and how lawmakers and the governor decide to proceed.

Federal issues
It is too early to determine how the change in leadership of Congress will impact education programs and funding. The No Child Left Behind Act is up for reauthorization next year. There had been some speculation that reauthorization would not occur until after the 2008 presidential election, but that was before the recent election shifted power in Congress. In anticipation of this discussion, CSBA has once again embarked on a campaign to “Fix NCLB.”

Other education issues Congress will be faced with next year include funding for Title I and the Individuals with Disabilities Education Act, the potential loss of reimbursement for the Medi-Cal Administrative Activities program and funding for counties and school districts that are impacted by the Federal Forest Reserve Sharing payments.