rssCalifornia Budget Proposal Endangers Stimulus Funds for Education
Friday, July 10, 2009 at 6:17 pm
- 7 Comments
Trapped in a deepening fiscal quagmire, California Gov. Arnold Schwarzenegger (R) has proposed a budgetary shift that could jeopardize federal stimulus funding for education, the San Francisco Chronicle reports.
Although $10 billion in stimulus funds for education has been granted to the state, those funds come with a caveat, as outlined by the U.S. Department of Education:
As part of the state’s application, each governor must include an assurance that the state will maintain the same level of support for elementary, secondary, and postsecondary education in FY 2009 through FY 2011 as it did in FY 2006.
This is to ensure that states use stimulus dollars to fund innovation and improvement in schools, rather than merely to plug budget holes. If California fails to ensure that its schools will receive the same amount of money from the state general fund as they did in 2006, the state will no longer qualify for stimulus funds for education.
But Schwarzenegger’s proposal leaves education funds unaccounted for until the state borrows money from local governments. According to the Chronicle:
The flaw in Schwarzenegger’s proposal centers on his plan to borrow $2 billion from local governments, which would then be used to pay for education. That move would free up $2 billion in the state’s general fund, which carries the $26.3 billion shortfall.
As a result, the Chronicle reports, California would not meet the Department of Education’s condition that the state maintains its 2006 level of support for education. The money borrowed from local governments would replenish funds to 2006 levels, but the stimulus provision requires that state funding remain consistent.
Although California has received much of the $10 billion in stimulus funds it was allocated for education, Schwarzenegger’s maneuver could end up jeopardizing the rest of the money, and the initial grants may need to be repaid to the government. Secretary of Education Arne Duncan has warned both Tennessee and Pennsylvania lawmakers against similar proposals, but neither state suffers from as dire a budgetary crisis as California. With an unbalanced budget looking him down the nose nine days after California’s new fiscal year began, Schwarzenegger will need to find a sufficient compromise soon — one that isn’t as potentially crippling as his current proposal.
7 Comments
Comment posted July 10, 2009 @ 10:49 pm
Rural californians that produce don't really care, other than the state workers, and the California teachers association.
but when the sheriff's siskiyou county gets budget cuts from the state and they can only have one sheriff protecting the weed branch courthouse, allowing the public to walk in unchecked while court is in session we have a problem. maybe it will take a judge getting gunned or knifed one day to fix the problem… the sheriff waved its cost of living adjustment and they still had to cut…
it really pisses off the people here when the stimulus has over a couple million going to through gravel down roads and trails at lassen park and the lava beds national monument plus money for road restoration in the national forests while the cities are furloughing police officers, firefighters, and other very important govt services…
what a waste of my little tax dollars…
theres no flaw in arnold's plan, we need massive change… california is over taxed and other countries import goods off of our expensive tax code that has killed california business… which in turn killed revenue for california and teachers…
Comment posted July 11, 2009 @ 2:33 pm
If the schools have gotten the 10 billion in stimulus then they will raise their pay, that is the only thing teachers care about. We don't know how much they make becasue of like minded reporters who distort and lie about their pay and budgets. But it doesn't really matter because we can no longer afford the school system, it is running neck and neck with medical, both are unsustainable. CA was going down before but the housing was the final nail. Property taxes and sales taxes should be cut 50 percent. Why? because they are too high and it is the only way the private sector can come back. The state gov has too much money that is the problem. Giving people 75 and 95 percent of their pay in retirement, paying for 90 percent of city college costs. useless boards and commissions. refusing to allow any nuclear power. If the feds are stupid enough to give ca any more money it will just dig a deeper hole.
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Comment posted July 13, 2009 @ 6:55 pm
Some of these stimulus funds were earmarked for California universities. Instead the Governor has stolen the money forcing UC to furlough faculty, cease hiring, and raise tuition. The Board of Regents act like a bunch of state lackeys and do nothing about this. The stimulus funds were supposed to save jobs in education and instead Schartzenegger is doing the opposite. We are eating our seed corn!
Comment posted July 14, 2009 @ 2:21 am
I truly believe cuts should be made to the high end salary employees, cutting school funds and jeopardizing grants should not be a way of saving Arnold's budget problems. The democrats and Arnold need to stop playing childish games and they should begin to lobbyist as grown ups. Please begin by putting your differences aside and make this great state as strong as it was in the 90's. We are such a rich state!
It is time the budget gets approve and finalize so it doe not continue to cost the tax payers, city employees, school districts, students such a burden, etc. . Lets get to work and lets unite as a government; remember a united government is much stronger than a divided one. Let's behave like adults and lets get to work!
Comment posted July 14, 2009 @ 5:44 am
I am reading with great apprehension the evolving news about our State's budget.
I cannot believe that Sacramento is starting to talk about suspending prop 98, for the second time in 2 years.
Education, the corner stone of our democracy, is once again made the scapegoat.
A bill is currently being discussed in the Senate which would lower the majority requirement necessary to raise a parcel tax, benefiting school districts. The bill is called SCA 6.
This bill is not a tax increase, rather, it would restore the democratic process, giving communities the opportunity to make local choices, benefiting local schools without going through Sacramento.
Please consider signing an on line petition in support of this bill
http://www.gopetition.com/petitions/save-califo…
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