Governor's Budget Revision Projects Fewer Education Cuts

While school districts feared the worst after Gov. Jerry Brown's failed attempt to put tax extensions that would cover education spending on a June ballot, things may be looking up with the release of the Governor's revised budget this morning.

During a televised conference Monday morning, Brown said that California expects $6.6 billion more in tax revenue than originally anticipated over the next 13 months, putting the deficit to $9.6 billion through to the end of the next fiscal year.

If the trend continues, Brown said the state could take in $3.6 billion by July 2012.

Schools should expect to see half of that revenue because of Proposition 98, which guarantees K-12 schools and community colleges a minimum amount of state funding. Schools should receive $3 billion more next year than it received this year.

While the Walnut Valley Unified School District did not send out any teacher layoff notices for next school year, officials has been making preparations for $5.1 million in possible cuts.  Assistant Superintendent Jack LeBrun told the  that without the governor’s proposed tax extensions, those cuts would total around $350 per pupil.

The Pomona Unified School District, which has , is also looking to the proposed tax extensions to cover a similar potential cut of $349 per student.

The district is currently involved in negotiations with the teachers union and classified employees union, Superintendent Richard Martinez said at the May 11 school board meeting, and the negotiations will look to produce "reduced costs while still treating our employees fairly," Martinez said. 

Even with revenues up some, Brown said he wanted to continue to pursue tax increase extensions to eliminate what he called a “wall of debt,” one that he said would not go away with the Republican assembly’s proposed budget.

Brown called for a 1 percent sales tax extension and a 0.5 percent vehicle license fee extension.  Brown is urging that the tax increases be put before voters as soon as possible, although negotiations with the legislature came to a standstill in March.

The new budget will ask legislators to pass the tax extensions which would be validated by voters in November.

Brown also reinvigorated his push to eliminate redevelopment agencies, which he said will save the state $1.7 billion.

Sen. Bob Huff (R-Diamond Bar) has fought against the move to defeat redevelopment agencies — a stance for which he caught criticism in a recent Los Angeles Times article, which detailed consulting work that Huff's wife, Mei Mei, has done for developer Ed Roski, Jr.

Though Diamond Bar does not have a redevelopment agency, neighbors like Walnut will likely fight hard against the proposal. Walnut City Attorney Michael Montgomery said earlier this month at a Walnut Planning Commission meeting that the Legislative Council, a group of attorneys who represent state lawmakers, recently ruled that the governor’s plan to get rid of redevelopment agencies is illegal.

State Senate Republicans Huff and Bob Dutton (R-Rancho Cucamonga), issued a joint statement that praised the governor for “embracing Republican proposals for paying down state debt and providing some job-creation incentives.” 

However, the senators said they feel this budget revision is too reliant on taxes and not dependent enough on reforms, specifically those related to a hard-spending cap, business-regulation relief, and pensions.

“Rather than curbing government spending, the governor’s revised budget still sets the state on a course of excessive spending growth in the future – spending that relies on tax increases,” they said.  “With $6.6 billion in revenues…we don’t need, and it’s ridiculous to ask voters for, five years of new taxes.”