January 8, 2010

Governor Budget Includes a Negative COLA and Cuts $2.3 Billion From the Proposition 98 Guarantee

The following are direct quotes from the Governor’s material describing his budget proposals:

“In an effort to protect classroom funding, the Governor is proposing a reduction of approximately 10 percent in funding for administration, overhead and other non-instruction related spending by school districts to offset increases in workload. The reductions are targeted to school district and county office of education central administration costs, with the balance coming from program savings and one-time Proposition 98 Reversion Account funding.

“The “in lieu” maintenance factor payments adopted as part of the 2009 Budget compromise were to begin in 2010-11. However, because the state faces a $19.9 billion deficit, the Governor’s Budget delays the start date of these payments to 2012-13. This change, along with the two changes proposed above and various tax reductions and shifts, will result in savings of $892.6 million in 2009-10 and $1.5 billion in 2010-11.  All the proposed changes will require legislation.

“Given that the state continues to face a budget deficit, the Administration proposes to provide additional flexibilities to schools to allow them to protect classroom spending to the maximum extent possible, and to build on the reforms embodied in President Obama’s Race to the Top Initiative:

“Teacher Seniority — The Governor’s Budget proposes to change state law to give local school districts the flexibility to layoff, assign, reassign, transfer and rehire teachers based on skill and subject matter needs without regard to seniority.

“Substitute Costs — The Budget also proposes to eliminate the provisions in state law that require teachers who have been laid off to receive first priority for substitute assignments and that these substitutes be paid at the rate they received before they were laid off if they work more than 20 days within a 60‑school day period.

“Staffing Notification Process — The Administration proposes to change the staffing notification window for teachers to 60 days after the state budget is adopted or amended.

“School Year — Schools will continue to be provided flexibility through 2012-13 to reduce instruction by up to five days, if necessary, to accommodate the reductions made in 2009‑10 without losing any incentive funding they receive to maintain a 180‑day school year.

“The budget includes an increase of $65 million General Fund in 2010-11 for the ongoing costs of mandated behavioral assessments and intervention plans.

“The budget contains a reduction of $1.2 billion General Fund in 2010-11 targeted to school district central administration. This proposal will protect classroom spending, including funding for teachers and principals, from further reductions.

“The budget includes a reduction of $45 million General Fund in 2010-11 for county office of education administrative costs. This proposal will require county offices of education to form regional consortia in order to consolidate functions and services. By consolidating county offices, this proposal will achieve economies of scale and reduce administrative costs.

“The budget includes a reduction of $300 million General Fund in 2010-11 to school districts and county offices of education. This proposal will eliminate barriers to contracting out in order to enable school districts to achieve significant cost reductions.

“The budget includes a reduction of $550 million General Fund in 2010-11 to reflect projected savings in the K-3 Class Size Reduction program. Although the penalties for exceeding class size limits were significantly reduced in 2009-10, we anticipate program savings of $550 million due to schools increasing class sizes.”

More information to follow next week.

~Dave Walrath