According to California education law, California Education Code, Section 14041, subsection (a), governs this principal apportionment payment by the state controller to the Superintendent of Public Instruction.
Arnold Schwarzenegger has proposed cutting an additional $5.3 billion from schools through next year -- in addition to an $8.6 billion cut announced in February. California schools near the bottom of per-pupil spending as it is. What gives Schwarzenegger the power to determine using school apportionment for the California general budget? The answer is a series of complicated decisions dating back over 30 years ago.
In 1978, Proposition 13 was passed shifting local real property taxes from the schools to Sacramento for redistribution. This was done to create equity within varying socio-economic areas in California. However, Proposition 13 has left the door wide open for the governor to back fill California's general budget with this tax revenue.
Despite the passing of Proposition 98, a school fund guarantee that passed several years ago, Schwarzenegger has used this fund as leverage to use federal aid to back fill spending from this fund to schools. In other words, instead of the local school districts controlling the money and spending, it is in the hands of California legislators. According to John Rogers, an education professor at the University of California at Los Angeles, the state controls and distributes about 75% of school's budgets.
What affects can California schools and students expect for the fall when students go back to school? It's a long list of cuts. Although many schools have lobbied for flexibility in spending to redistribute categorical funds (funds that can only be used for a particular purpose), there is little to no movement in this regard.
The projected next two years will be a trying time for education. The Center on Budget and Policy warned the public about education, "... state governments reeling from a free fall in tax revenues, have run out of tricks. And, Americans are about to feel it ..."
Many education business sectors have been hit hard as well, including the school construction industry that boomed in the last ten years from school improvement bond measures. Half of the money from the bond measures is required to come from the state, which California can no longer afford to contribute this apportionment, causing contruction companies to become bankrupt. http://www.examiner.com/x-5067-Education-in-the-News-Examiner~y2009m7d2-Californias-financial-education-crisis-trickles-down-causing-contruction-nightmare
As far as the affects on the local school districts - here is what a small school district (about 15,000 students) can expect to see this fall when they return to school. To start with, school districts will see a $7 million dollar shortfall over the next two years on top of the already cut budget from December 2008. That is a $3.5 million cut starting this fall spread over a year for a small school district. To put it in perspective, only $1.3 million is needed to reinstate the teachers that have already laid off for the next two years.
On top of the $3.5 million in cuts in 2009-2010 for this school district, there will be no flexibility in categorical spending. These cuts will be most-likely universal in all school districts, but the following specific cuts are profiled from one small school district (about 15,000 students: 10 elementary schools, 3 middle schools and 2 high schools) in Southern California:
- A universal spending freeze on materials, teacher enrichment conferences, equipment and supplies.
- Precautionary pink slips (lay off notices) will be served to classified and certified staff as well as management employed by the district.