March 17, 2008

Legislative Budget Hearings Start

The Assembly Budget Subcommittee No. 2 on Education held its first hearing on Tuesday.  The hearing related to an overview of the Governor’s proposals regarding Proposition 98 funding as well as the Legislative Analyst’s Office (LAO) response.  The Subcommittee deferred hearing issues related to categorical program reductions and consolidation until the April 1 hearing.  The Subcommittee will not be taking any actions; however, it will be taking testimony.  

The Senate Budget Subcommittee will start on March 25 with a similar discussion of Proposition 98 funding proposed by the Governor’s State Budget proposal and the alternative provided by the LAO.  We will be attending and testifying at these hearings.

Assembly Republicans Defeat Royal Tax For Schools

On Wednesday night the Assembly Republicans did not vote in support of legislation that would have imposed an oil severance tax and a windfall profits tax on oil companies operating and extracting oil in California.  The legislative proposal would have dedicated these funds, which could be up to $2 billion per year, to public K-14 education.  Because the tax increase requires a two-thirds vote, the Republican position of no new taxes meant that the bill could not pass even with a majority of the Legislature in support.  This issue potentially will come back again as an initiative for the November ballot.

Governor’s Commission on School Funding to Report

Staff from the Governor’s Commission on School Funding have indicated that they intend to present the Commission’s report to the Governor and the Legislature on Friday, March 14.   This will be a response to the Stanford University series of reports referred to as Getting Down To Facts.  

Assembly School Finance Working Group

The Assembly Education Committee has established a School Finance Working Group that will look at categorical program consolidation, the revenue limit and general purpose school funding mechanism, as well as other school finance issues.  The first meeting of the Assembly Working Group will be on March 17.  The expectation is that this Working Group will make proposals to the Committee for adoption at the Committee’s April 16 hearing.

Liz Hill Announces Retirement

On Thursday, March 13, 2008 the Legislative Analyst, Elizabeth Hill, announced that she will be retiring at the end of this current legislative session.  The Legislative Analyst has been instrumental in providing neutral fiscal analysis to the Legislature in dealing with the Governor’s budget proposals as well as significant appropriations and legislation.  Elizabeth Hill is respected for her neutral analytical skills which have been provided in both good and bad budget years as well as on issues related to prison funding and realignment of state and local governmental services.  She is completing a career of public service as a widely respected individual.  No replacement has been announced.  Whoever is the replacement, the individual will undoubtedly have to face a continuing budget problem for the State.

Legislature Goes On Break

The Legislature started its spring recess on Thursday March 13.  They will return to Sacramento on March 24 to continue hearings on legislation and the State Budget.

Dave Walrath

dwalrath@m-w-h.com