Governor’s Manipulation of Education Funding Sparks Scrutiny from U.S. Department of Education
West Sacramento, Calif. – The U.S. Department of Education has requested an explanation from Governor Schwarzenegger’s office regarding his 2010-11 K-12 budget proposal, which is $600 million below the federal maintenance of effort (MOE) requirement. The MOE requires California to maintain at least the same level of school funding as the state provided in 2005-06 in order to be eligible for federal stimulus and Race to the Top dollars. The Governor signed the MOE himself on behalf of the state and now is trying to back out of yet another promise regarding school funding by seeking a federal waiver of its provisions.
In order to bring state support for schools to its lowest point in five years, the governor proposes to use questionable accounting maneuvers to reduce the minimum level of school funding required by Proposition 98. Without those gimmicks, school funding would be higher, and a federal waiver would not be needed. Therefore, the use of those accounting maneuvers is at the heart of the federal inquiry.
CSBA joined the Education Coalition in challenging the use of those accounting maneuvers and asking the U.S. Department of Education to review the waiver request carefully.
“Unfortunately, it’s not the first time our governor has broken his commitments and balanced the state’s budget on the backs of our schoolchildren, but this could be the first time he is held accountable for it,” said CSBA President, Frank Pugh. “It's not right that our children keep paying the price for California’s broken education funding system.”
The Governor’s proposed budget would manipulate the calculations of education funds in at least two ways:
- Replacing the state sales tax on gasoline with an excise tax, thereby reducing “proceeds of taxes” for purposes of determining the Proposition 98 funding guarantee. This reduces the guarantee by $836 million in 2010-11.
- “Scoring” funding for the Quality Education Investment Act (QEIA) in a year other than the year in which school districts are required to spend it.
According to the U.S. Department of Education letter, the governor’s office must provide detailed written explanations no later than March 26.
For more information, please contact Brittany McKannay at 916-669-3244.