July 8, 2009

Manipulating Proposition 98

By David Walrath

Currently, the legislative majority does not support Proposition 98 suspension. I, however, am concerned with manipulation where the guarantee is redefined to result in no need for suspension but schools receive less money and no maintenance factor restoration.  

This situation could happen if: 1) the state manipulates when General Fund revenues are counted for Proposition 98 purposes; 2) the state does retroactive cuts; 3) the state counts future money as paid last year; or 4) a combination of 1, 2, and 3.  

All of this may be illegal, but schools would have to go to court to prove it is illegal.  In difficult budget times, the state has taken illegal acts before and then said: “If you do not like it, sue us.”