July 15, 2009

Budget Deal Close: No Proposition 98 Suspension

By David Walrath

Current rumors are that the Legislature will retroactively cut $1.4 billion out of the 2008-09 state funding for schools.  In essence, schools will receive what the Budget Conference Committee proposed in June.  Whether the retroactive cut is legal or not, will be left to litigation at a later date.  The agreement also appears to reduce the Budget Conference Committee school funding level by $680 million for 2009-10 while retaining the Budget Conference Committee language establishing and clarifying a Proposition 98 maintenance factor.  This is not final; however, this is the most recent information on a possible, but not guaranteed agreement on school funding.