State budget update: Conference Committee adopts K-12 budget

Analysis from CSBA's Governmental Relations Department

The Legislature’s Budget Conference Committee, composed of members of the state Senate and Assembly, concluded its work today. The panel took action on all outstanding issues, including the most significant aspect of the budget for K-12 education, referred to as the “Proposition 98 Package.” While a full review and analysis will take time, it appears the committee essentially approved what can be considered a baseline budget. In order to fully fund the 4.53 percent cost-of-living adjustment and growth, the funding approved was about $300 million higher than the Proposition 98 minimum guarantee requires.

It is important to note that this by no means closes the door on the education budget. The Republicans on the Conference Committee voted against the funding levels and, while their approval is not necessary for this step, some Republican votes will be necessary to pass the budget on the Senate and the Assembly floors. Gov. Arnold Schwarzenegger, of course, will have the final say in the budget process.

The uncertainty about the final outcome makes it all the more important for local board members to remind their legislators how urgent it is that base programs for schools are funded before any programs are expanded or new programs are added. This includes—as a number one priority—full funding for the cost-of-living adjustment and restoring equalization funding for lower-funded districts. Please call your legislator and reaffirm this important principle.

You can confirm who your Assembly member and senator are and how to contact them here.

In addition to the fully funded COLA and growth, the Conference Committee also approved ongoing funding to increase the meal reimbursement rate ($25 million) and restore prior cuts to Community-Based English Tutoring (CBET) ($50 million) that were proposed by the Senate. The package uses $137 million in one-time funds to pay for these ongoing investments. Additional one-time dollars were used to make a $100 million contribution to the Emergency Repair Program that was established in the Williams lawsuit settlement and $86 million for 12 initiatives for K-12 and community colleges.

While the Budget Conference Committee has concluded its action, as noted above, all sides still appear to far apart. The “Big Four”—the two top Democrats and Republicans from each house—have met recently, but apparently to no avail; now, according to news reports, they’re seeking input from the governorto help close a deal. Schwarzenegger, meanwhile, has returned from his trip to Europe, but it is not known when he will convene a meeting of the “Big Five.”

Still at issue is how to balance the budget in light of the changing revenue picture while still funding the priorities for all parties. Lower revenue projections will likely impact the funding levels for the 2006-07 education budget and, while they may not result in cuts to the budget, they would definitely affect the one-time funding that is available for 2007-08. This was clearly evident in the action taken by the conference committee that provided significantly less one-time funding for education than proposed in the Governor’s May revision.

Wait and see—but don’t wait to contact your legislator

As is apt to happen in the Capitol during extended silences, rumors continue to swirl. Despite the Conference Committee wrapping up their work, it appears that the parties aren’t near a deal at the moment, though that can quickly change. We just have to wait and see—and use the time to make sure legislators hear from home about what is important in the budget.