Prop. 98 repayment plans circulate in Capitol
California’s public schools have picked up important support in the state Capitol ahead of the annual revision in the governor’s budget proposal for the budget year that begins July 1.
State Senate President pro Tem Don Perata has proposed giving schools an additional $500 million this year as a down payment on the $3.2 billion owed under Proposition 98 for 2004-05 and 2005-06.
The Senate Budget Subcommittee on Education tentatively adopted the Oakland Democrat’s proposal and will recommend a schedule for repayment of the remaining $2.7 billion. Perata has suggested dedicating $270 million annually over 10 years. The Education Coalition wants all of the Proposition 98 money to be repaid within four years and has called for half of any new revenues that accrue through this year and 2006-07 to go toward that. The governor’s budget proposal in January of each year is based on total tax receipt projections; those forecasts are revised in mid-May, before legislative adoption of the budget, to reflect upward or downward changes in anticipated revenues.
“The next big event will be the May revise,” said Rick Pratt, CSBA Assistant Executive Director for Governmental Relations. Following that, a two-thirds vote in each house of the Legislature is required to adopt a budget, and the governor then can sign or veto specific spending provisions.
The general election in November looms over all these considerations, with the governor and other statewide officers, half of the state Senate and all of the Assembly up for election.
Pratt is optimistic that an education bond will also be on the fall ballot. Competing bond proposals involving schools, transportation, water and other services consumed state government at the start of the year. The governor and legislators were unable to agree on a package in time for the June primary elections, but education figured prominently in the discussions.
“It got caught up in politics involving the entire infrastructure package,” Pratt said. “We are still confident that there will be a bond in November.”