Education Funding

California Budget Pinch Leaves Schools Largely Unscathed

By Jessica L. Sandham — August 08, 2001 4 min read
  • Save to favorites
  • Print

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 costs and conserve energy.

“I wanted to make sure that for three years in a row, we kept education first,” the Democratic governor said at the ceremony. “Even in a softening economy, I wanted to maintain a strong commitment to education.”

The state constitution requires that the budget be completed by July 1, but this year legislators missed the deadline by more than three weeks as they locked horns over a quarter-cent increase in the sales tax that was opposed by Republicans.

The tax increase, originally implemented in 1991, was designed to disappear when the state’s budget reserve topped 4 percent of the general fund for two consecutive years. The tax was eliminated automatically at the start of this year, bringing the rate down to 4.75 percent, in the wake of a wave of prosperity supported by the then-booming technology industry. But with declining state revenues eating into budget reserves, the sales tax is expected to climb back to 5 percent this coming January.

Republican members of both the Assembly and the Senate held out against a budget compromise for weeks, as they called for the elimination of the tax. In the end, two Senate Republicans and 26 Democrats voted July 22 to pass the budget without repealing the quarter-cent tax, clearing the way for the governor’s signature. The Assembly, the legislature’s lower house, had passed the measure July 16.

Deeper Cuts Predicted

Assemblyman Dave Cox, a Republican, said that by not making hard decisions about spending cuts this year, lawmakers were setting themselves up for problems next year.

“Only politicians would think that raising taxes and having a deficit budget would stimulate the economy,” Mr. Cox said. “Clearly, if the economy continues to move in the direction it’s moving, there will have to be a slash-and-burn approach next year in order to balance the budget.”

In the course of budget negotiations, Gov. Davis dropped his $65 million proposal to extend the school year by 30 days for middle school students statewide, and scaled back several other education initiatives. The plan for an extended year for middle school students had been greeted with skepticism in the legislature and had failed to garner enough support from education groups.

“Where he came up with that, we have no idea,” said Wayne Johnson, the president of the California Teachers Association. “It wasn’t a well-thought-out idea. If you’re really looking to help low-performing schools, how does extending middle school in Beverly Hills help kids in Compton?”

Despite the targeted cuts, the budget for schools largely “held its own” since first proposed by the governor in January, said Rick Pratt, the assistant executive director for governmental relations for the California School Boards Association.

In addition to the programs for low-performing schools and energy costs, the budget includes $80 million for the first year of a four-year program that aims to train more than 260,000 educators in mathematics and reading instruction. Another $15 million is earmarked for the first year of a three-year principal-training initiative.

Still, Mr. Pratt noted that education lobbyists had originally hoped that a $200 million program designed to raise achievement in schools scoring near the bottom on state tests would receive more money.

“There are a number of areas where we’re looking to try to help the low-performing schools,” Mr. Pratt said. “But while we could use more money, we really can’t be disappointed because we did pretty well.”

An Eye Toward Exams

The legislature is sending more help to low-performing schools as the state moves closer to implementing its high school exit exam. Under current law, this fall’s incoming 10th graders will be the first class required to pass the test to graduate. The students took the test for the first time on a voluntary basis as 9th graders last spring—with 65 percent passing the English portion of the test, and 45 percent passing the math section.

Gov. Davis is supporting a measure—now pending in the legislature—that would authorize an independent study to gauge how prepared the class of 2004 is to pass the test. Depending on the study’s findings, the state board of education could vote to delay the graduation requirement.

In a state- commissioned evaluation of the exit exam released last month, the Human Resources Research Organization, a nonprofit research group based in Alexandria, Va., recommended that the state maintain the testing requirement for the class of 2004.

Related Tags:

A version of this article appeared in the August 08, 2001 edition of Education Week as California Budget Pinch Leaves Schools Largely Unscathed

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 Webinar
Hidden Costs of Special Ed Vacancies: Solutions for Your District
When provider vacancies hit, students feel it first. Hear what district leaders are doing to keep IEP-related services on track.
Content provided by Huddle Up
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
Privacy & Security Webinar
How Technology Is Reshaping Childhood
How do we protect kids online while embracing innovation? Learn about navigating safety, privacy, and opportunity in the Digital Age.
Content provided by Connect x Protect
Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.

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 Trump Holds Back $2 Billion for Education Grants. What Will Happen Next?
The White House is keeping congressionally approved money locked up through a little-known process.
11 min read
050626 funding cuts trump schools lieberman fs 2270953986
Getty
Education Funding A School Wants a Tornado Shelter. A Federal Grant Keeps Getting in the Way
The district still can't spend a FEMA grant it was originally awarded in 2022.
9 min read
FemaGrant Maiorella 02
A new gym under construction in Wisconsin's Cuba City school district, pictured April 16, 2026, would have also served as a tornado shelter, thanks to an $8.8 million FEMA grant. But nearly four years after it was awarded the grant, the district still doesn't have the money.
Arthur Maiorella for Education Week
Education Funding Trump Sidestepped Congress on More Than $1 Billion in Ed. Spending Last Year
Newly published documents show how the Ed. Dept. departed from Congress' plans.
13 min read
The likeness of George Washington is seen on a U.S. one dollar bill, March 13, 2023, in Marple Township, Pa. The nonpartisan Congressional Budget Office says it expects the federal government will be awash in debt over the next 30 years.
Newly published budget documents show the U.S. Department of Education, in the first year of President Donald Trump's second term, took roughly $1 billion Congress appropriated for specific education programs and spent it differently than how lawmakers intended—or didn't spend it all.
Matt Slocum/AP
Education Funding Federal Funds for Schools Will Still Flow Through Ed. Dept. System—For Now
The Trump administration has been touting its transfer of K-12 programs to the Labor Department.
5 min read
Remaining letters on the Department of Education on Wednesday, March 18, 2026, in Washington.
Remaining letters on the U.S. Department of Education building in Washington on Wednesday, March 18, 2026. Despite the agency's efforts to shift management of many of its programs to the U.S. Department of Labor, key K-12 funds will continue to flow through the Education Department's grants system this summer.
Allison Robbert/AP