Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: August 17, 2007             No. 18

 

Ask SSC . . . 

What Would Be the Impact of a 1% Across-the-Board Cut? 

Q.        We heard a rumor about the State Budget that there would be a 1% across-the-board cut. What would that mean in terms of K-12 and community college funding? 

A.        First, keep in mind that there are many rumors floating around right now. You should not put much stock in any of them, unless you have been chatting with one of the “Big Five.”  

To answer your question, a 1% across-the-board cut would mean just over $500 million for K-12 education and slightly more than $6 million for community colleges, but we think that it would be very difficult for the Legislature to make that level of cut.  

The Legislature could eliminate $99 million in Public Transportation Account funding for K-12 Home-to-School Transportation that is included in the Assembly version of the Budget. These funds are not counted toward Proposition 98, but nevertheless support K-12 education. 

But in order to cut another $460+ million, the Legislature would have to suspend Proposition 98, an option that has received no serious consideration to date. Suspension would require a two-thirds vote from both the Assembly and Senate and the Governor’s signature. At this point, suspension seems unlikely, given that the Governor is on record as saying that he would not cut education funding. In addition, the Senate Republicans, in their quest to eliminate the structural budget gap, have released a list of cuts that does not include education programs. 

In any event, we must remain vigilant that the final Budget agreement does not reduce K-14 education funding beyond the plan adopted by the Assembly.

 —Paul Goldfinger and Robert Miyashiro