Although the headlines this week touted an additional $3 billion for K-12 education as a result of higher than anticipated state revenues, a final budget agreement is far from a sure thing. 

While the May Revision is an important step toward stemming the tide of more than $18 billion in cuts to education over the past three years, the Governor's proposal still must be approved by the Legislature, and the revenue portions require a two-thirds vote of both houses. 

PTA members must continue to contact their legislators to urge them to support a balanced budget that protects public education and critical children’s services.

Our key messages continue to be:

►  Republicans and Democrats must work together to pass a budget on time.
►  We support a balanced approach that prevents deeper cuts to education and children's services, because CUT$ HURT KIDS.
►  We support the extension of temporary taxes to prevent cuts and ensure more stable funding levels.

Key points from the May Revision proposal

Funding for education

►  Funds the Proposition 98 education guarantee for K-12  at $52.3 billion (up $3 billion from the January budget proposal, yet still below the 2004-05 funding level).  It's important to note that this increase represents payment of funds already owed to education, not additional funding.
►  Per pupil funding close to the current year (approximately $19/ADA less than 2010/11).

Budget depends on extension of temporary revenues

►  This budget depends on an extension of certain temporary taxes, although the Governor has decreased slightly the number of taxes subject to the extension.
►  If these tax extensions are not approved, then the Proposition 98 guarantee would automatically drop by $2 billion.  If not approved, the administration suggests that it would be necessary to suspend Proposition 98 and cut as much as an additional $3 billion, for a total reduction of about $5 billion.
►  The Governor continues to insist that the tax extensions be approved by the voters, but the timing of an election has not been specified.

Clock is ticking

►  Timing is critical as school districts must submit balanced budgets by June 30.
►  The deadline for the Legislature to approve a budget is June 15; however, in prior years, this date has rarely been met.
►  Without assurances of additional revenues, school districts may be forced to budget on the basis of the worst-case scenario, or approximately $5 billion in cuts.  Children would have to suffer these budgets the entire upcoming school year.

Other areas of interest and concern to PTA

►  The budget proposal shifts mental health services for special education services (AB 3632 services) from counties to school districts and provides additional funding within Proposition 98 to cover these costs.
►  Removes the $2.1 billion deferral that had been proposed in the January budget and also buys down $400 million of previous deferrals. (The $2.1 billion deferral will be reinstated if the tax extensions are not successful.)
►  No funding for CALPADS or CALTIDES data systems pending a review of educational data collection requirements.
►  Shifts Healthy Families children to Medi-Cal. This is a new proposal; the potential impact is not clear at this time.
►  Increase of $10.7 million in foster care rate increases, but this is partially offset by elimination of the supplemental clothing allowance for foster family homes.
►  No further reductions to childcare, and reserves some funding for families re-enrolling in Stage 3 CalWORKs childcare.
►  Suspends a number of important education mandates, including parental notification of truancy.
►  Eliminates a number of state agencies, boards and commissions including the Early Learning Advisory Committee and the Office of Gang and Youth Violence Prevention.

PTA will continue to analyze the budget proposals and will keep you informed.  In the meantime, please continue to stay engaged and speak up for children.

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