November 12, 2008

LAO Special Session Report -- Lower Cuts for Education

The Legislative Analyst has released his Analysis of the Governor’s proposed special session revenue and expenditure changes. While the Legislative Analyst’s Office (LAO) generally agrees with the Governor’s overall fiscal projections, the Analyst disagrees with the level of proposed expenditure cuts for education and the types of taxes that should be increased.

The LAO recommends that K-14 Proposition 98 funding be cut by $1 billion in 2008-09 and $2.1 billion in 2009-10. The LAO’s recommendation is significantly lower than the Governor’s proposed $2.5 billion cut in 2008-09 and the continuation of the $2.5 billion cut into 2009-10.  

The LAO also differs on how the cuts should be made. Specifically, the LAO rejects the deep cuts to the revenue limit (other than COLA) and instead proposes targeted cuts to categorical aid programs and elimination of unidentified categorical aid programs.  

The LAO recommendation also would essentially freeze Proposition 98 funding through 2009-10, with no funding for COLA.  

While better than the Governor’s proposal, the LAO proposal still leaves schools without the resources needed to maintain current programs.

~Dave Walrath

dwalrath@m-w-h.com