Legislative Analyst Releases Recommendations

Just as the 2007-08 budget proposal has very few major issues, the Legislative Analyst’s Office (LAO) response has few major 2006-07 or 2007-08 recommendations.

Proposition 98 Minimum Funding Guarantee

The LAO estimates that the current year Proposition 98 minimum funding guarantee will decrease by approximately $600 million compared to current year funding.  The LAO recommends a series of proposed reductions in programs and a partial shift of transportation spill over funds to home to school transportation funding as a means to cut $600 million in General Fund Proposition 98.

They are proposing significant reductions (almost $300 million) in community college growth funding, pre-school expansion, and adjusting the special education base funding by almost $42 million. 

Any Proposition 98 estimate at this time is simply an estimate.  The effect of the LAO recommendation would be to ratchet down Proposition 98 funding in both the current and budget years.  Over a two year period (current and budget years), the LAO recommendation would result in approximately $1 billion less in Proposition 98 funding already adopted in the current year and proposed for the Governor’s budget.

In an odd technical issue of maintenance factor funding, if the LAO recommendation is rejected, the LAO estimates that the Proposition 98 guaranteed funding would be approximately $260 million greater than estimated in the Governor’s budget.

These types of swings in estimated Proposition 98 mean that no real action or consideration will occur until after the May Revision when there is a greater reliability in the state revenue and expenditure data.  SSDA will oppose the LAO Proposition 98 recommendations.

Career Technical Education

The LAO makes a detailed review of the Career Technical Education budget proposal and recommends changes to the proposal.  Specifically, the LAO recommends that the Career Technical Education program be shifted from a competitive grant to a regional allocation that can be used within the regions to enhance and improve Career Technical Education.  They propose a 7 year program of ongoing funding to the regions for this purpose. 

The LAO clearly recognizes the problems of competitive grant funding when they state “competitive grants tend to favor areas that can afford talented grant writers who develop high scoring projects.  As a consequence, the competitive grant process may make it difficult for some regions to in grants to improve local programs.”

SSDA strongly concurs with the LAO recommendation and will be supporting the recommendation to have an ongoing local based Career Technical Education development program, rather than a state-controlled competitive grant program.

Home-to-School Transportation

The LAO concurs with the SSDA position, and the position of many other education associations, that the Governor’s budget recommendation to transfer funding of home-to-school transportation to the public transportation account raised significant and serious legal as well as policy questions.  Consequently the LAO is recommending that the Governor’s proposal be rejected; however, the LAO also recommends that approximately $300 million in public transportation account money be used on a one time basis to support home-to-school transportation funding in the current year.  This and their other Proposition 98 current year funding reduction recommendations would result in a total current year savings of the $600 million that they estimate as a reduction in the Proposition 98 minimum guarantee.

SSDA opposes the use of $300 million from the public transportation account, unless it were a supplement to the home-to-school transportation funding, rather than an offset.

Child Care Transfer

If the LAO’s $600 million in Proposition 98 reductions are adopted then the LAO is recommending that the Legislature reject the Governor’s proposal to transfer approximately $270 million in child care programs from the Proposition 98 minimum guarantee.  The LAO makes this recommendation because insufficient funds would be available in Proposition 98 to fund the transfer. However, if the $600 million reduction is not adopted, then the LAO would support the child care transfer.

SSDA opposes the $600 million reduction and believes that the child care transfer would reduce the ability to appropriately and adequately fund school districts and would reduce the state’s ability to meet the school finance adequacy recommendations that will be made in April.  Consequently, SSDA opposes the transfer in any situation. 

High Speed Network

The LAO recommends full budgetary funding for the high speed network which provides access to broadband internet access for school districts.  This is a continuing issue for school districts, and particularly rural school districts because approximately 10% of the school districts in California do not have access.

SSDA will be working with the Legislature, LAO and others on how to increase funding to ensure that all schools and all students have access to high speed broadband internet connections.

~Dave Walrath