California Budget Pinch Leaves Schools Largely Unscathed

By Jessica L. Sandham

When the dust finally settled from the California legislature's weeks-long battle over a slimmed-down state budget, the schools proved to be the biggest victors.

At a July 26 budget-signing ceremony at a Sacramento elementary school, Gov. Gray Davis emphasized lawmakers' efforts to make education a priority despite a less prosperous economy. While the fiscal 2001-02 budget included a reduction in general-fund spending of about 2 percent, the budget for K-12 schools grew to $45.4 billion, almost 6 percent more than the previous year.

The spending hike includes a $200 million grant program to help low-performing schools and $250 million to help districts offset rising energy...