Education Forum Focuses on Governor’s Budget Cutting Efforts

• SMMUSD Forces Rally to Counter Proposed Midyear Deletion of $1.8 Billion for Grades K-12

BY SUZANNE GULDIMANN

Doom and gloom were, unsurprisingly, the financial forecast for California public schools at a community forum on California education funding entitled “Why Sacramento Matters: How It Impacts Our Schools.” The forum, held in Santa Monica last week was sponsored by the Santa Monica-Malibu Council of PTAs and the League of Woman Voters.
Ted Lempert, president of the advocacy group Children Now, moderated the panel, which included Julia Brownley, the incoming chair of the Assembly Education Committee; L.A. County Superintendent of Schools Darlene Robles; Santa Monica-Malibu Unified School District Superintendent Tim Cuneo; and California State PTA president Pam Brady.
The discussion was dominated by the news that on Nov. 6, Governor Schwarzenegger called a special session of the Legislature to address the general fund revenue shortfall of $11.2 billion, stating that the shortfall must be addressed by Nov. 30.
“The Governor is proposing $4.5 billion in cuts, with schools taking the biggest hit,” Brownley announced at the forum. “That’s a $2.2 billion cut in K-12. It takes back COLA (Cost of Living Adjustments). He’s proposing cuts of $1.8 billion in revenue midyear. I don’t know what he’s smoking.”
Brownley stated that the Legislative Analyst’s Office has a better understanding of education needs, and that it would be “devastating to make cuts midyear.”
The LAO proposal recommends that the Legislature modify the current K-12 COLA index to focus on projected compensation cost increases, rather than switch the index to a modified version of the California Consumer Price Index for wage-earners and clerical workers.
“I’m not sure how we are going to solve this problem. There’s no question we’re going to have cuts,” Brownley said. “How are we going to get out of this mess?”
“One of the things we have to be mindful of is budget reform and the lottery in 2009,” Brownley added, stating that the governor’s plan would temporarily divert lottery funds away from schools.
“I am not carrying to you good news. We have in essence a cut of $3 billion from schools with a potential of $5 billion,” Brownley announced.
Brownley, who was re-elected for a second term on Nov. 4, stated that the Democrats had a net gain of two seats in the Assembly but were still four seats short of a two-thirds majority that she sees as necessary to pass the tax reform she advocates.
“Our tax system has been cobbled together over 30 years,” she said, adding that she is currently working with the Speaker of the House “on how to commit ourselves to education as part of a California stimulus package.”
“California and the nation have to make the decision, do we want to import jobs from China and India or train people to do them?”
Robles agreed that taxes were the key to keeping state education solvent. “Voters are willing to be taxed to support public education,” the L.A. County Superintendent said. Robles stated that California is unusual because the state controls 80% of school funding and mandates the curriculum. “It’s not local control,” she said.
“Most voters are in favor of income tax rather than sales tax,” Robles said. “Children are an investment.”
“Every one of our kids is up against China’s top ten percent,” interjected Lempert.
The superintendent agreed. “Southeast Asia? They want our business,” Cuneo said, adding that he has lived in Asia and knows this firsthand. “It’s going to be incredibly competitive.”
Cuneo said that the Santa Monica-Malibu School District is not typical, because it receives 10 percent of its revenue locally, including $7.5 million from Malibu. In addition to what he described as the generosity of district voters, Cuneo credits the district’s board of directors with frugality and restraint.
“Our board of education has been prudent,” Cuneo said. “We have 21 million in unrestricted one-time dollars.” However, he cautioned that this reserve will not be enough to see the district through the current crisis.
“If we do not make a change, we are deficit-spending at [a rate of] $4 million per year,” Cuneo warned, stating that the district could see the loss of 50 teachers, 55 staff members and five administrators, leading to larger class sizes and reduced P.E., music, library and health service options.
“Even if we have midyear cuts we can’t make changes at this time.” Cuneo said.
The California PTA president echoed the view that a tax increase is the best way to fix the education budget deficit. “People are willing to pay,” Brady said. “We have to get to the point were we are all willing to share the burden. We need to get louder and clearer. We’re talking about an investment here.”
Brownley said that she is working on a plan to test whether there would be support for an attempt to challenge Proposition 13. “I would like to put something together, test where people are with that threshold. Our crisis is right in front of us.”
Prop. 13, passed by voters in 1978, limits the maximum amount of tax on real property to one percent of the full cash value of the property. Prop. 39, passed in 2000, lowered the threshold for electoral passage of local school bond acts from the two-thirds required by Prop. 13 to a majority of 55 percent, however efforts to repeal Prop 13 have failed.
A 1992 challenge led to a U.S. Supreme Court ruling that the proposition was constitutional. Prop 13 is viewed by many as a “third rail,” or lethally charged issued. Taxpayer organizations have fought to protect the measure, which is viewed my many as the last line of defense against excessive taxation in a state that has one of the highest income tax rates in country.
Asked if providing quality public education was an unattainable goal, Brownley replied, “Unattainable? No. But it may require lawsuits. It galls me that as a state we aren’t figuring out a road map.”
Brownley was cautiously optimistic about the incoming administration in Washington. “We have to be in Washington. We need to take this opportunity to make sure California’s voice is heard,” she said.
“All Children Will Learn will replace ‘No Child Left Behind,’” Robles added.
The vehicle sales tax repeal was blamed in part for the current financial crisis. “People like to get rid of taxes,” Brownley said. She stated that she views the vehicle license fee as a better alternative to the governor’s proposed sales tax increase.
“I want to remain hopeful that the Republican side of the aisle will see the light,” Brownley said. “We all have to roll up our sleeves and work together.”
“We will continue the fight,” Brady agreed. “Where we were before, we can be there again.”
“What ‘then’ is she taking about?” a member of the audience was heard to say, as the forum ended. “I was there, and it wasn’t that great then either.”