$5.7 billion cut to education could have been even worse

7/29/09

On Tuesday, Gov. Schwarzenegger signed into law a 27-bill budget package that guts $16.1 billion from virtually all programs across the state. Public education received $5.7 billion in cuts. By all accounts this budget is one of the worst in California history -- but it could have been even worse.

Gov. Schwarzenegger initially proposed several budget measures that could have had a devastating impact on public education and its employees. After the failure of his May ballot propositions, the governor proposed a virtual fire sale on many public programs, particularly education. He wanted to do away with baseline funding guaranteed under the voter-approved Proposition 98. He proposed scrapping school transportation programs, contracting-out school jobs and undermining pensions for school employees.

Working within the limitations of the state's nose-diving revenue base, CSEA helped put a stop to several of these extreme proposals.

Saving Prop. 98
Less than a month ago, the governor announced a plan to permit unlimited cuts to public schools by suspending Proposition 98, the state's minimum funding guarantee for public education.

CSEA and the Education Coalition actively opposed this proposal and the far-reaching consequences it would have had on our schools. The governor's plan was not adopted by the Legislature, and Prop. 98 was spared.

Under this year's budget agreement, approximately $1.6 billion in unallocated categorical funding will be withheld to bring Proposition 98 down to the minimum guarantee.  However, the funding will be restored in the 09-10 fiscal year to backfill and maintain the level of categorical funding.

The Prop 98 maintenance factor will also be restored. The maintenance factor is the difference between what education should have received under the Prop. 98 formula and what was actually received. The budget statutorily certifies that the $11.2 billion maintenance factor owed for this year, along with outstanding balances owed in previous years, will be restored to the Prop. 98 base.

Saving transportation
The governor proposed cutting funding for home-to-school transportation by a whopping 65 percent.  The proposal made headlines throughout the state and was blasted by parents, school officials and CSEA.

In the final budget, transportation funding was reduced by 20 percent equal to other categorical programs with language that protects the base funding for transportation. While funds may transfer from some categorical programs into transportation, no funds may be transferred out of transportation.

Saving classified jobs
As part of his budget plan, Gov. Schwarzenegger initially proposed repealing SB 1419, a law that established reasonable safeguards for school districts to follow prior to contracting-out classified services. In a time when school employees are already losing their jobs to layoffs, widespread contracting-out would have had decimated jobs.

CSEA strongly opposed this proposal and worked closely with Legislative leaders to keep SB 1419 intact.

Saving pensions
The governor proposed rolling back retirement benefits to create a two-tier pension system for classified employees. Specifically, he proposed repealing SB 400, a CSEA -sponsored bill which established the 2-percent-at-age-50 pension formula, as well as the final highest year compensation for retirement and other pension benefit increases.
CSEA and other unions joined together to kill this proposal in the budget.

What's next?
Now that the budget has been signed, CSEA, the Education Coalition and the Fair Budget Coalition are exploring several strategies to hold the Governor and legislature accountable for this terrible budget. CSEA leaders, members and staff will continue fighting for justice for education and the other communities of people who have been made to unfairly pay the highest price in this budget.

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Protect classified jobs in lean times

Our voice as classified school employees is most important during these times when school districts are making cuts. Our chapter’s advocacy might be the difference between losing our jobs and saving the important work we do for students.

As a CSEA member, make sure you are up-to-date with the district’s plans to balance its budget. If you hear from chapter leadership about actions we will take as a chapter to protect our jobs, be sure to participate.

It’s also important to pass on CSEA materials regarding the importance of our jobs to your co-workers and to the parents of the students we serve. Talk to the chapter’s leadership to find out what else you can do to help. By keeping everyone involved and participating, we can help the district find ways to weather these tough economic times.

Surviving the state budget crisis

As you probably know, California schools have been targeted for widespread cuts as lawmakers search for a way out of the state's worst budget crisis in modern times.

While it may be a difficult time to be a school or community college employee, it's never been a more important time to be a member of CSEA. Your union is working at all levels to help its members survive this budget crisis.

Learn more about what CSEA is doing and what action you can take. CSEA's Web site gives you budget news updates, school finance information, helpful resources and ways for you to get involved. Go to: www.csea.com/budget