State budget action stalls
Analysis from CSBA’s Governmental Relations Department
Published: August 26, 2008
Gov. Arnold Schwarzenegger has said it’s urgent for a state budget to land on his desk, but at press time neither he nor legislative leaders had managed to break the lengthening stalemate.
The Legislature’s Budget Conference Committee approved a $107.7 billion overall spending plan last month. The state Senate and Assembly’s original plans for education spending were generally in agreement, so the Conference Committee’s main concern for Proposition 98 was the overall level of funding. This affects the cost of living adjustment, which in any event will likely change—up or down—in the final budget. The panel called for a COLA of about 2 percent, essentially splitting the difference between the Assembly and Senate plans; by comparison, the statutory COLA is 5.66 percent.
The Conference Committee’s $59.1 billion for Proposition 98 is still $1.7 billion below the workload budget that the governor had calculated schools would need just to maintain current services. Schwarzenegger’s May Revision, in contrast, would allot just $56.8 billion for Proposition 98.
Lottery securitization
Plans for securitizing the lottery—basically, leasing out long-term profits for an immediate revenue boost—have been rejected by legislators who don’t believe it would benefit the current-year budget. However, the door is still open for a proposal to reemerge in the final budget.
Related link:
- For updates on the budget and its effects on education, check “Latest News” @ www.csba.org.