Education Funding

As Deficit Mounts, Davis Tries To Spare Schools

By Joetta L. Sack — May 22, 2002 4 min read
  • Save to favorites
  • Print

Gov. Gray Davis proposed new taxes and cuts in a revised budget plan for California last week that attempts to protect schools while managing a deficit that has surpassed $23 billion.

He alleviated educators’ concerns by refusing to suspend Proposition 98, the state’s ballot measure that changed the constitution to guarantee minimum funding for schools. The governor, a first-term Democrat facing re-election this fall, instead wants to see a 2 percent cost-of-living increase for K-12 schools, but he also said cuts to some specific education programs would be needed.

Mr. Davis proposed several new revenue sources in a bid to find enough money to try to patch the growing budget hole, which affects both the current fiscal 2002 and upcoming fiscal 2003 budgets. Among the proposals, the governor wants to raise taxes significantly on motor-vehicle licenses and cigarettes, borrow from the state’s future tobacco-settlement funds, use such accounting maneuvers as delayed payments to schools, and reduce state spending by $7.6 billion in fiscal 2003. The total state budget approved for fiscal 2002 was $78.8 billion, with about $31.3 billion allotted to K-12 education.

“Education remains my top priority, and I’m pleased we were able to provide the Proposition 98 requirements,” Gov. Davis said in announcing his proposal on May 14. “Even in the hardest times, we can’t turn our backs on the progress our children have made.”

The state has already made deep cuts in its fiscal 2002 budget plan to alleviate shortfalls.

The governor is allowed to suspend Proposition 98 in times of state economic crisis, but chose instead to make deep cuts in other programs, a spokeswoman for the governor said.

Gov. Davis received praise from education groups for what they perceived as his willingness to fight for precollegiate education under tough conditions.

“It is extraordinary that the governor is making the kind of effort he is to protect the investments in public education,” said Kevin Gordon, the executive director of the California Association of School Business Officials. “It takes a lot of guts to put forward a tax increase when you are nearly six months away from Election Day, for the sake of public schools.”

The two main teachers’ unions backed the plan. “We’ve been saying all along that you can’t make this deficit up in cuts,” said Steve Hopcraft, a spokesman for the California Federation of Teachers.

The budget proposal, however, would not be pain-free for the state’s 6.7 million students and its nearly 1,000 school districts.

It would defer payment on new teacher-training programs and awards to schools that performed well on state assessments; payments for last year’s winners would be postponed, and awards for this year would be suspended.

It also would scale back funding for instructional materials, from $625 million to $480 million; school library funding, from $100 million to $80 million; and aid for reading textbooks, from $200 million to $150 million. Moreover, the plan would eliminate a $75 million proposal to purchase new science equipment in fiscal 2003.

The governor’s plan gives community colleges a 2 percent funding increase.

But out-of-state tuition at the state’s universities would increase by 15 percent, and the University of California system would see $162 million in cuts, mainly to research programs.

The state’s revenue shortfall has been growing since January, when it was estimated at $12.5 billion for the coming 18 months.

California’s problems started last year with the collapse of the dot.com industry, and the state saw drops in capital-gains tax proceeds from its wealthiest residents and businesses. As the national economy went into recession, California’s problems intensified. (“Revenue Shortfall Prompts Big School Cuts in California,” Feb. 6, 2002.)

Plan Questioned

Steve Smith, a policy analyst with the National Conference of State Legislatures in Denver, said other states that are feeling the effects of the ailing economy have been exploring increased taxes, such as the cigarette tax.

“The magnitude is always going to seem enormous because it’s California,” he added.

Gov. Davis said in his announcement that he felt confident that the state’s economy would improve later this year, although not dramatically, and that the state would be able to repay the funds it would borrow under his plan.

Republicans in the legislature are more skeptical. Sen. James L. Brulte, the Senate’s GOP leader, said that in January, the governor had predicted the economy would improve by this month.

Sen. Brulte criticized the plan last week because he believes that the tax proposals are unnecessary and that the state “does not have a revenue issue, but a restraint issue,” an aide said in reference to the state’s reluctance to put the brakes on spending.

Mr. Gordon meanwhile, predicted other state politicians would have to follow Gov. Davis’ lead or risk being seen as not caring about education. “Once the governor stakes out his turf on Proposition 98, the politician who has the temerity to disagree becomes the perceived enemy of public education statewide,” he said.

Staff Writer Michelle Galley contributed to this report.

A version of this article appeared in the May 22, 2002 edition of Education Week as As Deficit Mounts, Davis Tries To Spare Schools

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education
Bringing Dyslexia Screening into the Future
Explore the latest research shaping dyslexia screening and learn how schools can identify and support students more effectively.
Content provided by Renaissance
Artificial Intelligence K-12 Essentials Forum How Schools Are Navigating AI Advances
Join this free virtual event to learn how schools are striking a balance between using AI and avoiding its potentially harmful effects.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
A Blueprint for Structured Literacy: Building a Shared Vision for Classroom Success—Presented by the International Dyslexia Association
Leading experts and educators come together for a dynamic discussion on how to make Structured Literacy a reality in every classroom.
Content provided by Wilson Language Training

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Opinion The Federal Shutdown Is a Rorschach Test for Education
Polarization, confusion, and perverse incentives turn a serious discussion into a stylized debate.
7 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Many Districts Will Lose Federal Funds Until the Shutdown Ends
And if federal layoffs go through, the Ed. Dept. would lack staff to send out the funds afterward, too.
7 min read
Students from Rosebud Elementary School perform in a drum circle during a meeting about abusive conditions at Native American boarding schools at Sinte Gleska University on the Rosebud Sioux Reservation in Mission, S.D., on Oct. 15, 2022.
Students from Rosebud Elementary School perform in a drum circle on Oct. 15, 2022. The Todd County district, which includes the Rosebud school, relies on the federal Impact Aid program for nearly 40 percent of its annual budget. Impact Aid payments are on hold during the federal shutdown, and the Trump administration has laid off the federal employees who administer the program.
Matthew Brown/AP
Education Funding Trump Admin. Relaunches School Mental Health Grants It Yanked—With a Twist
The administration abruptly discontinued the grant programs in April, saying they reflected Biden-era priorities.
6 min read
Protesters gather at the State Capitol in Salem, Ore., on Feb. 18, 2019, calling for education funding during the "March for Our Students" rally.
Protesters call for education funding in Salem, Ore., on Feb. 18, 2019. The Trump administration has relaunched two school mental health grant programs after abruptly discontinuing the awards in April. Now, the grants will only support efforts to boost the ranks of school psychologists, and not school counselors, social workers, or any other types of school mental health professionals.
Alex Milan Tracy/Sipa via AP
Education Funding Trump Administration Slashes STEM Education Research Grants
Some experts say the funding cuts are at odds with the administration's AI learning priorities.
3 min read
Vector illustration of a giant pair of scissors coming in the side of the frame about to cut dollar signs that are falling off of a microscope. There is a businessman at the top of a ladder looking down into the microscope at the dollar signs falling off the lense.
Collage by Gina Tomko/Education Week and Getty