OF THE SENATE BUDGET BUDGET,
SUB-COMMITTEE ONE ON EDUCATION
WILL COME TO ORDER. THIS IS OUR
FIRST, UH MEETING OF 2024 AS A
SUB COMMITTEE AND WE'LL BE
MEETING MANY THURSDAYS BETWEEN
NOW AND THE MAY. REVIS UH, WE
WILL NOT TAKE ACTION TODAY, BUT
WE ARE EXPECTING SENATOR MIN IN
A LITTLE BIT. AND WHEN HE
ARRIVES, WE WILL, UH, CALL A
QUORUM TO FORMALLY UH UH, HAVE
ONE. IN THE PAST FEW YEARS. UH,
WE'VE BEEN ABLE TO SECURE A
RECORD LEVEL OF DISCRETIONARY
FUNDS FOR LOCAL SCHOOLS
STABILIZE FUNDING FOR SCHOOL
TRANSPORTATION AND PROVIDE
UNIVERSAL SCHOOL MEALS WITHOUT
REGARD TO INCOME. HOWEVER
CALIFORNIA IS NOW FACING A MAJOR
BUDGET DEFICIT. AND WHILE THE
RANGES ARE BETWEEN 38 BILLION
AND 73 BILLION, UH, WE ARE
FACING DECISIONS THAT WILL HAVE
REAL IMPACTS ON THE THINGS WE
FUND AND THESE NUMBERS QUITE
POSSIBLY WILL CHANGE EVEN MORE
AS WE HEAD TOWARD THE MAY REVISE
IN IN JUNE DECISIONS AND OTHER
UNLIKE OTHER PARTS OF THE BUDGET
, SUCH AS REDUCTIONS TO COW
WORKS PROGRAMS, FOSTER YOUTH
FORMER FOSTER YOUTH PROGRAMS,
VICTIM ASSISTANCE, HOUSING AND
OTHERS. THE GOVERNOR DOES NOT
PROPOSE TO REDUCE CASE THROUGH
12 EDUCATION. IT PROPOSES BY, UH
UH, TO DO THIS BY USING A NOVEL
APPROACH, UH, IN ACCOUNTING THAT
WE WILL DISCUSS LATER TODAY, UH,
REVENUE PROJECTIONS ARE COMING
IN LOWER AND THAT MEANS AS WE
CONTINUE THE BUDGET DISCUSSIONS
WE'RE GOING TO HAVE TO CONSIDER
ALMOST EVERY, UH UM, TOOL IN OUR
TOOLBOX WITH HIS LITTLE
DISRUPTION TO LEARNING AND, UH.
LEARNING FOR KIDS AS POSSIBLE,
AND WE ARE MINDFUL THAT WHILE
THE EDUCATION PART OF THE BUDGET
IS A SIGNIFICANT PART, INCLUDING
, UH UH, HIGHER EDUCATION GETS
NEAR 40 TO 45% OF THE TOTAL
BUDGET. IF YOU PROTECT THAT
THEY'LL BE EVEN MORE MAJOR CUTS
IN THE OTHER PARTS OF THE BUDGET
, AND THOSE MAJOR CUTS AFFECT
THE VERY KIDS THAT ARE IN SCHOOL
AND CHILD CARE, STUDENT AID,
HEALTH CARE, TRANSPORTATION AND
OTHER THINGS, SO WE ARE MINDFUL
OF THE DECISIONS THAT WE HAVE TO
MAKE THIS YEAR WILL CLOSELY
EXAMINE ISSUES AND CHALLENGES
FACING PRE Kò TO 12 COMMUNITY
COLLEGES AND HIGHER EDUCATION
AND ENSURE THAT WE COMMIT TO
CALIFORNIA THAT OUR SCHOOLS WILL
CONTINUE TO THRIVE DURING THESE
CHALLENGING TIMES, AND WE WILL,
AS WE HAVE EXCUSE ME, AS WE HAVE
IN PREVIOUS YEARS. WE WILL NOT
BE TAKING ACTION AS WE MOVE
THROUGH THE HEARINGS AND THE
LAST DAY OF FEBRUARY, MARCH,
APRIL AND INTO MAY, BUT WE WILL
BE AIRING EVERY ISSUE IN SUCH
DETAIL THAT WE START TO
UNDERSTAND THE BUILDING BLOCKS
THAT WE WILL HAVE AS WE HEAD TO
THOSE TOUGH DECISIONS IN IN MAY
AND JUNE. AND UM, WE'LL BE
OBLIGATED TO CONSIDER MANY
OPTIONS THAT WE JUST WOULD NOT
CONSIDER IN ANY OTHER YEAR. AND
THOSE TO ME ARE THE LAST RESORT.
BUT THAT'S THE REASON WE'RE
HAVING THE HEARINGS TO DRIVE
THEM TO GROUND AND UNDERSTAND
EXACTLY WHAT THEY ARE AND ON A
PERSONAL NOTE. I AM FINDING THAT
MANY STAKEHOLDERS DO NOT
APPRECIATE THE SITUATION WE'RE
IN. IN THE LAST TWO WEEKS. I'VE
BEEN VISITED BY REPRESENTATIVES
FOR HOSPITALS. èC RL, A
CHILDCARE, DIFFERENT LEVELS OF
EDUCATION AND WHETHER THEY USE
THE SAME PHRASE OR NOT. IT'S
BASICALLY JUST DON'T CUT US AND
IF WE HAVE A DEFICIT THAT
CHARITABLY IS 38 BILLION, BUT IS
MORE LIKELY HIGHER THAN THAT BY
POSSIBLY TENS OF BILLIONS.
EVERYBODY IN SOME WAY WILL HAVE
TO TAKE A HAIRCUT. THE QUESTION
IS, CAN WE DO IT WITH THE
ABSOLUTE MINIMUM DISRUPTION OF
SERVICES, PARTICULARLY WHEN WITH
EDUCATION AND OTHER SERVICES? WE
ARE THE SAFETY NET AT STATE
GOVERNMENT AND I HAVE BEEN ADVI.
PEOPLE WHO LOOK AT LOOK AT ME
WITH IN RATHER STUNNED SILENCE
THAT THEY SHOULD HAVE
CONVERSATIONS AMONG THEMSELVES
ABOUT WHAT THEIR MOST IMPORTANT
PRIORITIES ARE AND DON'T
NEGOTIATE AGAINST THEMSELVES.
DON'T LEAD WITH IT, BUT AT LEAST
HAVE A SENSE OF WHERE PEOPLE ARE
ON ISSUES TO KNOW THAT WHEN IT
GETS TO CRUNCH TIME AND TOUGH
DECISIONS ARE MADE, UM THERE'S A
WAY TO ONE WANTS THE OUTCOME TO
YOUR BEST ADVANTAGE. AND SO I
WOULD GIVE EVERYBODY IN THIS
ROOM, UH, THAT ADVICE AS WELL.
AND DON'T COMPLETELY FREAK OUT
BECAUSE WE'RE CONSIDERING EVERY
OPTION, BUT WE'VE NEED TO KNOW
WITH EVERY OPTION HOW MUCH IT'S
GOING TO COST OR NOT COST AND
WHAT IT MIGHT DO TO THE BUDGET,
SO WE AT LEAST KNOW THOSE
BUILDING BLOCKS AND YOU KNOW
THOSE BUILDING BLOCK. AND SO, UM
, I WAS BUDGET CHAIR IN THE
ASSEMBLY 15 YEARS AGO AND VERY
DIFFICULT TIMES AND I KEEP
SAYING THAT IS WHEN YOU DO YOUR
BEST WORK BECAUSE THAT IS WHEN
YOU REALLY PROTECT THINGS THAT
YOU NEED TO. SO WITH THAT, UH UM
THAT WE WILL START ON THE
HEARING. WE HAVE FIVE ISSUES
TODAY, AND WE ARE GONNA TAKE
PUBLIC COMMENT AFTER THE FIVE
ISSUES AND BECAUSE WE HAVE
SOMEHOW MOVED PAST THE PROCESSES
FOR COVID. UH, THE ONLY COMMENT
WILL BE IN PERSON. SO UH, WE
WILL NOT BE TAKING A TELEPHONE
OR REMOTE COMMENTS TODAY. SO
WITH THAT, UH UH, LET'S MOVE. TO
ISSUE NUMBER ONE AN ISSUE NUMBER
ONE IS MARY NICELY? CHIEF DEPUTY
SUPERINTENDENT FROM THE
DEPARTMENT OF EDUCATION HERE ON
BEHALF OF, UM STATE
SUPERINTENDENT. UH, TONY THURMAN
. ALTHOUGH I'M VERY CONFIDENT IN
THE FIRST SENTENCE, YOU'RE GOING
TO SAY THAT THAT'S HOW YOU'RE
SPEAKING AND, UM YOU'LL PROVIDE
AN UPDATE FROM THE
SUPERINTENDENTS OF YOU ON THE
STATE OF Kò THROUGH 12 EDUCATION
. SO UH, WELCOME TO THE
COMMITTEE, AND I DID SEE HIM
LAST NIGHT AT A RECEPTION. AND
UH UH, HE INDICATED THAT HE
WOULD HAVE LIKED TO HAVE BEEN
HERE. BUT HE DIDN'T HAVE MUCH
CHOICE TODAY. SO WELCOME TO THE
COMMITTEE. THANK YOU. THANK YOU,
SENATOR LAIRD. UM AND I DO
REALLY APPRECIATE. YEAH IT'S
VERY NICELY. CHIEF DEPUTY
SUPERINTENDENT HERE ON BEHALF OF
, UH, STATE SUPERINTENDENT
PUBLIC INSTRUCTION THURMONT
ABOUT, UM, YOU KNOW HIS
PRIORITIES FOR CALIFORNIA'S
EDUCATION AND, UH, THE
GOVERNOR'S BUDGET AND I DO
APPRECIATE YOUR OPENING
STATEMENT BECAUSE I THINK YOU
COVERED ALMOST EVERYTHING I NEED
TO TALK ABOUT. SO THANK VERY
MUCH. UM BUT NÓ I DO. I DO
APPRECIATE THIS OPPORTUNITY TO
ADDRESS YOU AND UM AND WE DO
APPRECIATE THE FACT THAT THIS
BUDGET DOES YOU PRIORITIZE
EDUCATION AND TRY AND KEEP SOME
CONSISTENT FUNDING FOR OUR KIDS
OVER THESE YEARS. UM AND DESPITE
ALL OF THAT, WE DO HAVE GOOD
NEWS THAT THERE IS SOME FUNDING
COMING IN FOR PROP 28 TO SUPPORT
ARTS AND MUSIC, SO AT LEAST WE
HAVE THAT AS SOME IN YOUR NEW
INCOME TO BE ABLE TO LOOK
FORWARD TO ENSURE OUR KIDS HAVE
A WELL ROUNDED, UM, EDUCATION.
UH, BUT ALSO WE ALSO KNOW THAT
THIS ISN'T THE TIME FOR NEW
INVESTMENTS, SO WE ARE GRATEFUL
TO BE ABLE TO LOOK AT ALL OF
THOSE, UH, INVESTMENTS THAT YOU
SPOKE ABOUT EXPANDED LEARNING
UNIVERSAL Tð Kò OUR MEALS, UM,
LEARNING RECOVERY BLOCK GRANT,
UM READING COACHES AND LITERACY
SPECIALISTS, ALL OF THOSE THINGS
SO THIS YEAR REALLY IS SOMETHING
FOR US TO LOOK AT AND FOCUS ON
MAXIMIZING HOW WE ARE TRACKING
THOSE INVESTMENTS. SO THIS IS
SOMETHING THE SUPERINTENDENT IS
VERY FOCUSED ON BEING ABLE TO,
UM, LOOK AT THE MEASURABLE
OUTCOMES AND WE REALLY WANT TO
WORK WITH YOU ALL ON. HOW DO WE
DO THAT? WITH THIS LIMITED
FUNDING. HOW DO WE LOOK AT HOW
WHAT WE ARE DOING TO HELP OUR
KIDS WITH THESE HISTORIC
INVESTMENTS TO ADDRESS CHRONIC
ABSENCE TO INCREASE GRADUATION
RATES TO, UH, ADDRESS LITERACY?
UH, AND SOME OF HIS MANY BIG
PRIORITIES AROUND READING BY
THIRD GRADE, SO WE WANT TO BE
ABLE TO LOOK AT THAT AND WORK
WITH YOU ON THAT, AND WE'RE
REALLY GRATEFUL THAT LAST YEAR,
THE LEGISLATURE DID FUND THE
FIRST EVER DEPARTMENT, UM,
OFFICE FOR èC Dð AROUND DATA
ANALYSIS AND VISUALIZATION. WE
COULD DIG INTO THE DATA AND
REALLY LOOK AT HOW THESE
INVESTMENTS ARE WORKING SO THAT
WHEN WE DO GET MORE FLUSH, WE
CAN CONTINUE ON WITH THOSE, UH,
THOSE MAJOR INVESTMENTS TO
SUPPORT OUR KIDS. AND UH SO THAT
THEY THRIVE. UM SOME OTHER
THINGS THAT WE ARE CONTINUING TO
DO AS WELL, UH, THAT WE STARTED
LAST YEAR. EVEN THOUGH WE DON'T
HAVE RESPONSIBILITY IS TO WORK
VERY, VERY HARD ON TEACHER
RECRUITMENT AND RETENTION. SO
THAT IS SOMETHING THAT THE
SUPERINTENDENT WILL CONTINUE ON.
UH, WE BROUGHT ON A, UH, A
PERSON FULL TIME TO ACTUALLY
LEAD THOSE EFFORTS FOR US TO BE
ABLE TO ALIGN SOME OF THE WORK
THAT IS IN THERE, AND WE'RE ALSO
GRATEFUL FOR THE FUNDING FOR THE
GOLDEN STATE SCHOLARSHIPS THAT
WERE EXPANDED TO INCLUDE
COUNSELORS BECAUSE WE ALSO KNOW
SCHOOL COUNSELORS, UM MENTAL
HEALTH PROFESSIONALS ARE ALSO AS
VERY IMPORTANT AS WE COME OUT OF
COVID AND THAT WE HAVE OUR
TEACHERS. UM ONE OF THE OTHER
BIG PRIORITIES FOR THE
SUPERINTENDENT IS AROUND
PROFESSIONAL DEVELOPMENT. SO WE
ARE PUTTING IN UM SOME
LEGISLATION TO ASK FOR THE
FUNDING TO BE ABLE TO TRAIN UP
TO 100 AND 60,000 EDUCATORS IN
MATH AND READING AND SO THAT OUR
STUDENTS CAN CONTINUE TO HAVE
HIGH QUALITY EDUCATORS IN EVERY
CLASSROOM BECAUSE WHAT IS THE
USE OF A CLASSROOM WITHOUT
HAVING AN AMAZING TEACHER IN
THERE TO SUPPORT ALL OF OUR
KIDS? SO WE ARE LOOKING AT THAT
AS A PRIORITY? UM ANOTHER
PRIORITY THAT WE ARE LOOKING AT
IS COMPUTER SCIENCE, A COMPUTER
SCIENCE REQUIREMENT BECAUSE WE
ALSO KNOW THAT OUR STUDENTS IN
THE HEART OF SILICON VALLEY IN
THE, UH, TECHNOLOGY WORLD, UH,
CALIFORNIA SHOULD BE KEEPING UP
WITH THE REST OF THE COUNTRY AND
FOR THE FUTURE OF OUR ECONOMY
AND THE FUTURE OF OUR STATE. OUR
STUDENTS HAVE TO BE READY TO
THRIVE IN THIS GLOBAL ECONOMY.
THAT IS SO TECHNOLOGY BASED, UH,
WE'RE ALSO LOOKING AT THE
IMPACTS OF ARTIFICIAL
INTELLIGENCE, THOUGH USING THOSE
TOOLS, UH, IN OUR CLASSROOMS,
BUT ALSO MAKING SURE THAT WE
HAVE DIGITAL LITERACY. AND ALL
OF THE SAFEGUARDS AROUND HOW WE
ENSURE THAT, UM ARTIFICIAL
INTELLIGENCE IS USED FOR GOOD
AND NOT FOR EVIL. SO THAT IS
ANOTHER, UH, VERY HIGH PRIORITY
FOR US TO WORK WITH, UM. AND
ALSO JUST IN PREPARATION FOR OUR
KIDS FOR THE FUTURE WE ARE
LOOKING AT. UH, WE'VE DONE SOME,
UH, PRIVATE FUNDRAISING TO BE
ABLE TO LOOK AT, UH, SOME PAID
INTERNSHIP PROGRAMS FOR OUR
STUDENTS TO HELP THEM ALSO LOOK
AT BRIGHT FUTURES. SO AS WE LOOK
AT THE STATE, NOT POTENTIALLY
HAVING A LOT OF NEW EXPENDITURES
COMING, WE ARE LOOKING AT
DIFFERENT WAYS TO CONTINUE TO
SUPPORT OUR KIDS, UH, IN IN
THEIR JOURNEY. UM AND SO WE ARE
ALWAYS GRATEFUL FOR THE FUNDING
THAT COMES IN FROM THE FEDERAL
GOVERNMENT AND THE STATE. CAREER
TECHNICAL EDUCATION IN THE
PATHWAYS THAT ARE AVAILABLE TO
OUR KIDS. UM AND SO THOSE OF YOU
THAT YOU KNOW WERE IN THIS
LEGISLATURE WITH THE ST WITH THE
SUPERINTENDENT KNOW THAT HE WILL
NEVER GIVE UP BEING A LEGISLATOR
SO HE'LL COVER AND HE'LL CARRY.
UH, WE HAVE AN AMAZING
GOVERNMENT AFFAIRS TEAM HERE
THAT WILL ALWAYS SAY HE WANTS TO
CARRY HIS OWN BILL PACKAGE. AND
SO YOU KNOW THAT YOU HE WILL BE
WALKING THESE HALLS TO SUPPORT
HIS LEGISLATION THAT WILL
SUPPORT OUR KIDS AND OUR
FAMILIES IN OUR COMMUNITIES,
AND, UM, JUST IN CLOSING. I JUST
WANNA SAY, YOU KNOW BE. I'M JUST
GRATEFUL FOR EVERYTHING THAT YOU
HAVE DONE TO SUPPORT US. AND YOU
KNOW, SENATOR LAIRD, WHAT YOU
SAID AT THE BEGINNING KIND OF
ENCAPSULATED ALL OF OUR
FEELINGS. WE DON'T WANT TO BE
ABLE TO CUT UH, IN INTO
EDUCATION. WE DON'T WANT TO TAKE
ANY STEPS BACKWARDS. WE DO KNOW
THAT THERE ARE OUR SCHOOL
DISTRICTS THAT ARE COMING TO US
AND SAYING WHEN WE DO HAVE THE
ABILITY TO HAVE MORE FUNDING,
PLEASE, YOU KNOW, SUPPORT A COLA
. UH PLEASE DO NOT, YOU KNOW,
KEEP US WHOLE KEEP EDUCATION.
COOL SO WE DO NOT STEP BACK. UM
BUT, UH, I'M JUST REALLY
GRATEFUL FOR TO BE HERE TODAY.
AND IF YOU HAVE ANY QUESTIONS,
PLEASE LET ME KNOW. UM. I
APPRECIATE YOUR COMMENTS VERY
MUCH AND LOOK FORWARD TO WORKING
WITH YOU. AND I KNOW THAT ONE OF
THE THINGS THAT'S AT RISK IS
IMPLEMENTING BILLS THAT WERE
ADOPTED LAST YEAR AND WE HAVE
ONE ON, UH, AN L GB Tð Q
STUDENT. ADVISORY COMMITTEE THAT
, UM YOUR CHARGED WITH
IMPLEMENTING SO WE HOPE WE CAN
FIGURE OUT A WAY THAT THAT GOES
FORWARD IN OTHER SIMILAR THINGS,
BUT I JUST APPRECIATE YOUR
COMMENTS BECAUSE, UM, WE WON'T
JUST NEED TO WORK TOGETHER
CLOSELY. AND I ALSO APPRECIATE
YOUR ACKNOWLEDGING THE
SUPERINTENDENT'S RELENTLESSNESS.
GOOD THING. LET ME ASK US. WE
HAVE BEEN JOINED BY SENATOR MIN
WHETHER YOU HAVE ANY COMMENTS OR
QUESTIONS, OK, WELL, THANK YOU
VERY MUCH. WE REALLY APPRECIATE
YOU BEING HERE. THANK YOU. THANK
YOU FOR YOUR TIME. AND WE'RE
GOING TO MOVE TO ISSUE TWO. THE
FISCAL HEALTH OF SCHOOL
DISTRICTS, MIKE FINE IS HERE.
UH, UH, THE CHIEF EXECUTIVE
OFFICER OF THE FISCAL CRISIS AND
MANAGEMENT ASSESSMENT ASSISTANCE
TEAM IN MY WAR ON ACRONYMS. I
NEED TO SAY IT FIRST. IT'S FC
MAT. AND THEN WHILE GETTING
READY TO PRESENT I'M GOING TO
ASK THAT WE CALL THE ROLL FOR A
QUORUM. UH, POLICE CALL THE ROLL
. SENATOR LAIRD HERE, SENATOR
LAIRD HERE, SENATOR. M SENATOR
MIN HERE, SENATOR WILK. OK WE
HAVE ESTABLISHED DECORUM. EVEN
THOUGH WE DON'T EXPECT TO BE
TAKING ANY ACTIONS. WE HAVE
FORMALLY ESTABLISHED A COR. SO,
UM WELCOME AND I KNOW THAT WE
HAVE A VERY DETAILED REPORT THAT
IS IN OUR AGENDA PACKET AND
MAYBE IF YOU JUST GIVE US SOME
TOP LINES OF WHAT'S GOING ON
WITH THE FISCAL HEALTH OF THE
SCHOOL DISTRICTS, I WOULD DO SO.
GOOD MORNING, SENATOR LAIRD,
SENATOR MIN AND STAFF. MICHAEL
FINE, CHIEF EXECUTIVE OFFICER OF
THE FISCAL CRISIS MANAGEMENT
ASSISTANCE TEAM. YOUR STAFF
REPORT IS VERY THOROUGH. I HAVE
GIVEN YOU A HANDOUT OF BOTH MY
COMMENTS AND OF SOME CHARTS THE
CHARTS. I WILL SIMPLY JUST
REFERRED TO MAYBE, UH, TWO OF
THEM. UH, THE FIRST ONE IS A
SLIDE TWO, THE HISTORICAL
QUALIFIED AND NEGATIVE
CERTIFICATIONS. I THINK THE
COMMITTEE IS WELL AWARE OF, UH,
SCHOOL DISTRICT CERTIFICATION OF
THEIR BUDGET. THOSE ARE DONE AT
THE SCHOOL DISTRICT LEVEL BY
THEIR GOVERNING BOARDS AND THEN
THE COUNTY SUPERINTENDENT OR THE
STATE SUPERINTENDENT IN THE CASE
OF SOME DISTRICTS AND COUNTIES,
UH, VALIDATE THOSE IN A
QUALIFIED OR NEGATIVE
CERTIFICATION QUALIFIED AS AS
STAFF REPORT EXPLAINS IS THEY
MAY NOT MEET THEIR OBLIGATIONS
NEGATIVE IS THAT THEY WILL NOT
MEET THEIR OBLIGATIONS IN EITHER
THE CURRENT OR THE SUBSEQUENT
YEARS. UM THE CHART THAT I'VE
GIVEN YOU ON THE FAR RIGHT IS
DECEMBER DATA. UM IT COMPARES TO
LAST SPRING, WHICH IS JUST RIGHT
NEXT TO IT, AND YOU CAN SEE THAT
FOR NEGATIVE DISTRICTS. WE HAVE
DOUBLED THOSE FROM THREE TO SIX.
AND WHILE THE TOTAL NUMBER
DOESN'T SOUND LIKE A LOT, THE
FACT THAT THEY'VE DOUBLED IS A
IS A LEADING INDICATOR FOR US.
AND THAT FOR OUR QUALIFIED
DISTRICTS. WE'VE GONE FROM 10
LAST SPRING TO 31 IN DECEMBER,
TRIPLING THE NUMBER AND SO WE'VE
HAD THROUGH THIS COMMITTEE'S
WORK AND THROUGH THE ENTIRE
LEGISLATURE ADMINISTRATION'S
WORK THE LAST SEVERAL YEARS A
GREAT DEAL OF FUNDING TO SUPPORT
OUR PROGRAMS IN IN OUR LE, A S¼
AND, UH, YOU CAN SEE THAT IN THE
LAST COUPLE OF YEARS, WE'VE HAD
SOME VERY LOW. UM UH, CERT OR
QUALIFIED AND NEGATIVE
CERTIFICATIONS. UM AND STARTING
TO SEE THOSE TICK UP. I EXPECT
THEY WILL TICK UP FURTHER AT
SECOND INTERIM, WHICH IS JUST A
COUPLE WEEKS AWAY, UM, THAT
THOSE ARE DUE. UM AND I'LL SPEAK
TO THE TRENDS THAT ARE THAT ARE
CAUSING THAT, UH, THE NEXT SLIDE
I WOULD WANT TO TAKE YOU TO, UM
IN MY MATERIALS IS ACTUALLY
SLIDE. I'M SORRY IT'S SLIDE.
NINE. WHICH IS LACK OF GOING
CONCERN SO SIMILAR TO THE
CERTIFICATIONS THAT HAPPEN AT
FIRST INTERIM AND SECOND INTERIM
REPORT. LACK OF GOING CONCERN IS
ANOTHER WAY FOR THE COUNTY, UH,
TO ACKNOWLEDGE THAT THE DISTRICT
IS HAVING TROUBLE BUT AT ANY
TIME DURING THE SCHOOL YEAR, NOT
JUST IF THOSE OFFICIAL REPORTING
PERIODS AND WE HAVE SIX OF THOSE
RIGHT NOW, SO FAR THIS DISTRICT
SO FAR THIS YEAR. A NOTEWORTHY
AMONG THESE ARE SOME REPEATS
FROM PRIOR PERIODS. YOU CAN YOU
CAN SEE THE RECENT HISTORY ALL
ON ON SLIDE NINE AND WE ARE
ENGAGED WITH ALL OF THESE
DISTRICTS OR HAVE BEEN THE OTHER
NOTABLE THING, UH, THAT'S BURIED
IN IN THESE IN THESE SLIDES, AND
I WON'T TAKE THE TIME TO
HIGHLIGHT IT BECAUSE I I'LL MAKE
THOSE COMMENTS HERE IN MY
TRENDS. UH, BUT MANY OF THE
DISTRICTS THAT ARE EXPERIENCING
PROBLEMS ARE SMALL AND TINY
DISTRICTS, UM AND AS WE SEE
DECLINING ENROLLMENT, UM, REALLY
IN EVERY REGION OF THE STATE,
NOT EVERY DISTRICT, NOT EVERY
COUNTY, BUT EVERY REGION OF THE
STATE. UM IT'S OUR SMALLS AND
OUR TINY THAT HAVE LESS ABILITY
TO DEAL WITH THAT WHEN THEY ONLY
HAVE 4088. START WITH AVERAGE
DAILY ATTENDANCE, AND TWO
FAMILIES MOVE OUT THAT EACH HAVE
THREE KIDS. THEY'VE LOST A
PRETTY SIGNIFICANT, UM, AMOUNT
OF THEIR A Dð A AND THEY ALREADY
ONLY HAVE ONE TEACHER TEACHING
KINDERGARTEN 1ST, 2ND AND 3RD
GRADE IN A COMBO CLASS, RIGHT?
SO THERE ISN'T A WHOLE LOT OF
ROOM, UH, FOR THEM TO ADJUST
THEIR EXPENDITURES, AND SO WE'RE
SEEING THAT IN THE DATA, MANY OF
THE DISTRICTS THAT ARE ON THE
LIST IN THE CHARTS, UM, ARE FIT
THAT CRITERIA. UM BACK TO MY
TALKING POINTS, THE NEAR TERM
TRENDS AND I'LL I'LL WALK
THROUGH THESE BECAUSE I THINK,
UH, WELL, SOME OF THEM ARE
REPEATS FROM LAST YEAR. SOME OF
THEM ARE NEW AND A LITTLE BIT
MORE, UH, DETAIL ON ON ONE.
DECLINING ENROLLMENT, AS I JUST
INDICATED, IS PRESENT IN EVERY
REGION OF THE STATE. UM, AND AS
I JUST INDICATED SMALL AND TINY
ARE REALLY FEELING THAT IMPACT.
UM OUR LARGEST DISTRICTS, OF
COURSE, ARE LOSING THE MAJORITY
OF THE KIDS, BUT THEY ALSO HAVE
MORE FLEXIBILITY. UH, TO ADJUST,
UM, IN IN THOSE SCENARIOS.
ATTENDANCE YIELD. UH, COMING OUT
AT A LOW POINT OF THE PANDEMIC,
UM, HAS STARTED TO GROW, WHICH
IS GOOD NEWS, SO WE HAVE
DECLINING ENROLLMENT, BUT THE
ACTUAL YIELD OF ATTENDANCE IS
GOING UP. AND SO THESE TWO
THINGS ARE CROSSING EACH OTHER,
AS OPPOSED TO MOVING TOGETHER
RIGHT NOW THAT WILL BEGIN TO
CHANGE IN NEXT FISCAL YEAR ON
JULY 1ST, AND THAT'S BECAUSE
SOME OF THE MITIGATION MEASURES
THAT WE PUT IN PLACE DURING THE
PANDEMIC WILL BEGIN TO HAVE LESS
OF AN IMPACT AS WE MOVE INTO A
MORE STABLE ENVIRONMENT. BOTH
ENROLLMENT UM AND A Dð, A WE
CERTAINLY HAD A LARGE AMOUNT OF
ONE TIME FUNDING BOTH FROM THE
STATE AND THE FEDERAL GOVERNMENT
DURING THE PANDEMIC, THE LARGEST
SINGLE POT OF MONEY FROM THE
FEDERAL GOVERNMENT DOES EXPIRE
IN SEPTEMBER. SEPTEMBER 30TH
EITHER THE FUNDS HAVE TO BE
FULLY EXPENDED OR WILL RETURN
THEM TO WASHINGTON. WE HAVE
ABOUT 30% OF THOSE FUNDS STILL
ON SPENT AT THIS POINT IN TIME,
UM AND, UH AND SO WE HAD STAFF
IN MANY DISTRICTS HAD STAFF TIED
TO THOSE FUNDS. YOU'RE STARTING
TO SEE THAT IN THE HEADLINES OF
LAST SEVERAL WEEKS AROUND A
POTENTIAL LAYOFFS THAT DISTRICTS
ARE ENACTING. PART OF THAT IS
TIED TO THOSE FUNDS THAT EXPIRE
IN SEPTEMBER, AND THEY HAVE TO
TAKE THOSE ACTIONS BY MARCH.
15TH. UM LOW TO NORMAL, COS
YOU'RE CERTAINLY WELL AWARE OF
THE COLA THAT'S IN THE
GOVERNOR'S, UH, JANUARY BUDGET.
UM AND I KNOW YOU HEAR FROM YOUR
CONSTITUENTS. IT'S JUST THAT'S
AN UNWORKABLE NUMBER. THE
REALITY IS ANY COAL THAT'S
PROBABLY BELOW 4.5 5% FEELS
LOCALLY LIKE A CUT BECAUSE
THEY'RE FIXED COSTS ARE GOING UP
4.5% FROM YEAR TO YEAR. I LIKE
TO SAY WHETHER THEY GET OUT OF
BED AND GO TO WORK, OR THEY GET
OUT OF BED AND GO TO SCHOOL OR
NOT, THEIR COSTS ARE GOING UP.
5% A YEAR. SO A COLA THAT IS
BELOW THAT ALWAYS GETS GOING TO
FEEL LIKE A CUT AT THE LOCAL
LEVEL. UM AND WE AND WE ALL
UNDERSTAND THAT DYNAMIC.
INCLUDED IN THAT, UM ARE, UH,
STEP IN COLUMN FOR OUR STAFF. UM
THAT ARE SOMEWHAT AUTOMATIC, UM,
FORECASTED INCREASES IN
RETIREMENT SYSTEM CONTRIBUTIONS,
UTILITY COSTS. ALL ALL TYPES OF
COSTS ARE EMBEDDED IN THAT 4.5
TO 5% YEAR OVER YEAR GROWTH.
INFLATIONARY PRESSURES, AS YOU
KNOW, FROM JUST GOING TO THE
GROCERY STORE REMAIN. THEY MAY
NOT BE INCREASING AT THE RATE
THAT THEY WERE INCREASING, BUT,
UH, COST OF PENCILS ARE STILL AT
THE THREE DOLLAR MARK. AFTER
BEING AT $2. THEY'RE NOT ROLLING
BACK TO $2 IF YOU WILL, AND SO
DISTRICTS STILL FEEL THAT
INFLATIONARY PRESSURE AS WELL.
WELL IT'S BEEN ON MY LIST FOR
THE LAST SEVERAL YEARS, WE ARE
STARTING TO BE ABLE TO QUANTIFY
THE IMPACT OF ASSEMBLY BILL 218
FROM SEVERAL YEARS AGO. THIS
DEALS WITH SEXUAL ABUSE OF
MINORS. UM. WE ARE MOVING INTO
AS THESE CASES MATURE. UM AND GO
TO TRIAL WHERE YOU ARE STARTING
TO SEE VERY, VERY LARGE
JUDGMENTS. WE HAVE A RECENT
JUDGMENT JUST THIS FALL OF 137
MILLION FOR TWO VICTIMS. THERE
ARE FOUR MORE VICTIMS FROM THE
SAME EVENT, UM, THAT ARE PENDING
TRIAL. UM IN MANY CASES, THE
CLAIMS THAT WERE SEEING TODAY
THAT ARE BEING ADJUDICATED TODAY
ARE EITHER UNINSURED OR
UNDERINSURED. THEY GO BACK 3040
YEARS INSURANCE COMPANY THAT WAS
EXISTENCE AT THAT POINT MAY NOT
EVEN STILL BE IN BUSINESS. UM
IT'S A QUESTION THAT THE
DISTRICT EVEN KNOWS WHO ITS
INSURANCE PARTNER WAS 30 YEARS
AGO, BUT TODAY MOST INSURANCE
FOR SCHOOL DISTRICTS IS PROVIDED
BY RISK POOLS THAT THE SCHOOL
DISTRICTS ACTUALLY OWN AND
CONTROL. A GROUPS OF DISTRICTS
POOL THEIR WRISTS TOGETHER, AND
THOSE POOLS HAVE TO REMAIN
SOLVENT. AND SO THEY ASSESS. UM
A SPECIAL ASSESSMENT ON THEIR
MEMBER DISTRICTS TO MAKE UP FOR
THOSE LOSSES. ONE WAY OR THE
OTHER THROUGH PREMIUM INCREASES
THROUGH SPECIAL ASSESSMENTS OR
THROUGH THE PAYMENT OF THE CLAIM
OR THE JUDGMENT ITSELF. THOSE
ARE COMING OUT OF CURRENT YEAR L
èC FF FUNDS FOR DISTRICTS,
NOTABLY WHAT WE EXPECT.
DIFFERENT THIS YEAR TO NEXT YEAR
IS THE PREMIUM INCREASE FOR
THEIR BASIC LIABILITY COVERAGE,
ASSUMING THEY CAN ACTUALLY
OBTAIN IT. THE SPECIAL
ASSESSMENTS FOR PRIOR CLAIMS.
THOSE TWO ITEMS ALONE. JUST
GROWTH THIS YEAR OR NEXT YEAR
WILL EAT UP 100% OF THE CURRENT
FORECASTED PER A COLA. SO BEFORE
WE EVEN GET INTO THOSE FIXED
COSTS. I WAS TALKING ABOUT A FEW
MINUTES AGO. 100% OF THAT WILL
BE EATEN UP AS WE MOVE FROM THIS
YEAR TO NEXT YEAR IN JUST THOSE
TWO ITEMS OF RELATED TO
LIABILITY COVERAGE. ON THE GOOD
NEWS AS WE ENTER INTO THIS, UH,
PERIOD OF, UH UM, CONTRACTING
RESOURCES. IF YOU WILL, UM,
DISTRICTS ENTER THIS PERIOD VERY
DIFFERENTLY THAN THEY DID, UH,
ENTERING IN THE GREAT RECESSION,
FOR EXAMPLE, THEY HAVE STRONG
RESERVES AVERAGING AROUND 22%
GREATER THAN THE 8% WE SAW IN 78
. AND THEY HAVE STRONG CASH
RESERVES AND BOTH OF YOU WILL
REMEMBER IN 781 OF THE ISSUES
WAS CASH ON HAND. BOTH THE STATE
AND THE DISTRICTS HAVE STRONG
CASH RESERVES AT THIS POINT, SO
THAT WILL, UM, THAT WILL HELP
THEM MITIGATE SOME SHORT TERM
IMPACTS FROM THE DISCUSSIONS
THAT OBVIOUSLY YOU'RE HAVING
TODAY AND OVER THE COURSE OF THE
NEXT COUPLE OF MONTHS. THOSE ARE
MY COMMENTS, SENATOR HAPPY TO
ANSWER ANY QUESTIONS? THANK YOU.
I REALLY APPRECIATE YOUR
COMMENTS AND LET ME JUST. SORT
OF CONCUR IN A COUPLE OF WAYS. I
MEAN, FIRST, IF YOU LOOK AT THE
GOVERNOR'S CALL OUT, WHICH HOPE
ISN'T. IN THE END, AN OPTIMISTIC
ONE BUT AS A FRACTION OF 1% AND
THE FEDERAL MONEY RUNNING OUT
AND ENROLLMENT DECLINING. I HAVE
A SCHOOL DISTRICT THAT'S SMALLER
THREE. MAYBE TWO ELEMENTARY ONE
MIDDLE SOMETHING LIKE THAT THAT
JUST THIS WEEK ENACTED MAJOR
LAYOFFS. THERE'S A HUGE UPROAR.
AND YET IT IS THAT COMING HOME
TO ROOST, AND IT SEEMS TO ME
THAT THAT AS THE FEDERAL MONEY
RUNS OUT, IF YOU'RE MAKING THIS
REPORT NEXT YEAR, WE'RE GOING TO
HAVE MUCH MORE IN IT. AND THAT'S
NOT GOOD. BUT IT UH UH, IN THAT
ONE, THEY ENACTED IT BECAUSE THE
COUNTY SUPERINTENDENT WAS ABOUT
READY TO HAVE TO TAKE SOME
ACTION. ABSENT THEM ARE DOING
IT. SECONDLY, THANK YOU FOR
BRINGING UP. UH, A B 218. AND
THE THING ABOUT IT IS WHEN I
MADE MY ROUNDS IN THE FALL, I
HAD TWO SCHOOL DISTRICTS THAT
BROUGHT IT UP VEHEMENTLY, AND
THEY'RE BOTH RELATIVELY SMALL
AND ONE OF THEM. THE INSURANCE
COMPANY IS LONG GONE FROM THE
TIME THAT THE, UH THING HAPPENED
AND THEY'RE SITTING HERE LOOKING
FOR SOME SORT OF REDRESS. I MEAN
WHAT THEY WERE ASKING FOR, AND
I'M SAYING THIS BECAUSE THERE'S
LOTS OF PEOPLE FROM THE
LEGISLATIVE A FINANCE AND OTHERS
SITTING HERE THEY WERE ASKING
FOR. THE REDRESS OF HAVING THEIR
CURRENT INSURANCE. UH, OPERATOR
COVER IT SINCE IT WAS SO FAR
BACK AND YOU COULDN'T FIGURE OUT
HOW TO DO IT. I DON'T KNOW IF
THAT'S A LOGICAL THING. BUT
SOMETHING HAS TO BE DONE BECAUSE
THEY WILL JUST LITERALLY GO
UNDER WITH ONE PAYMENT AND NOT
BEING INSURED. THAT'S RIGHT. SO
THERE WE NEED TO DO SOMETHING IN
SOME WAY. I'M JUST NOT SURE WHAT
IT IS. AND I'M HAPPY YOU KNOW
THIS MORNING, BUT IF THIS
COMMITTEE WANTS TO EXPLORE SOME
THOSE POLICY IDEAS AND WOULD BE
HAPPY TO COME TALK TO YOU ABOUT
THOSE. THERE ARE SOME SIMPLE
THINGS WE CAN DO THAT DON'T
REALLY INTERFERE WITH THE
VICTIM'S COMPENSATION, WHICH I
THINK WOULD BE A PRIORITY. UM UH
AND THEN THERE ARE SOME OTHER
THINGS THAT WE COULD LOOK AT
THAT WE MODEL IN OTHER WAYS,
EARTHQUAKE COVERAGE AND SOME
OTHER THINGS, SUCH AS INVITING
COMPENSATION POOLS, UM, THAT IN
THIS CASE, THE STATE WOULDN'T BE
ABLE TO AFFORD TO CONTRIBUTE TO
IT. BUT DISTRICTS COULD
CONTRIBUTE TO IT. THOSE OFTEN
OPERATE WITH WITHIN SET LIMITS.
SO WE DON'T END UP WITH
JUDGMENTS IN THE 137 MILLION
THAT ARE UNINSURED TYPE OF THING
. UM, SO SEVERAL IDEAS THAT WE,
THE BUDGET STAFFERS WEARING A
MASK AND IA SHOES. SHE'S
PROBABLY WISHING SHE'S WEARING
IT OVER HER EYES. IF I SUGGEST
ANOTHER MEETING IN THE MIDDLE OF
ALL THESE HEARINGS, UH AS HIDES
THE EYE ROLL. UH UH. BUT IT
WOULD BE GOOD. IT WOULD BE GOOD
TO HAVE A DISCUSSION ABOUT THAT,
AND IT WOULD BE GOOD AT SOME
POINT TO INVOLVE A FINANCE. IN
OTHER BECAUSE THERE MAY BE
SOMETHING THAT A BUDGET TRAILER
BILL COULD DO. BUT YOU KNOW,
THIS IS ENOUGH OF A POLICY THAT
MAYBE WE NEED TO BUILD, BUT
NEVERTHELESS, IT CAN'T GO ON A
UNADDRESSED IT. IT CAN'T BECAUSE
AT SOME POINT IT DOES FALL BACK
TO THE STATE. IF THAT DISTRICT
CAN'T ADDRESS IT, THEN WE'RE
LOOKING AT RECEIVERSHIP ISSUES
AND THE STATE WOULD BE LOANING
THEM THE MONEY. THE STATE
WOULDN'T BE PAYING THE BILL, BUT
THEY WOULD BE LOANING THE MONEY
BUT THE BAGGAGE AND I'M GONNA
USE THAT TERM THE BAGGAGE THAT
COMES WITH THE RECEIVERSHIP. UM,
HISTORICALLY ASSOCIATED WITH
POOR MANAGEMENT. FISCAL
MANAGEMENT IN A DISTRICT IN
THESE CASES, THAT'S NOT
NECESSARILY THE CASE, RIGHT?
WELL THE OTHER THING IS I. I
LOOK AT YOUR LIST EVERY YEAR AND
THE SCHOOL DISTRICT THAT I GREW
THAT I GREW UP IN IN FKI WERE
JUST COUNTING ON THE ADULTS TO
TAKE CARE OF THINGS AND HAVE A
CLASSROOM FOR US TO SHOW UP TO,
SO IT IT. IT IS SOMETHING THAT
WE JUST HAVE TO MAKE SURE AND
THIS WHOLE THING TRIGGERS ONE
THING THAT MAY BE MORE LOGICAL.
WHEN THE NEXT DISCUSSION, BUT,
UM, THERE WAS A BUDGET. LIGHT
CARVE OUT OR ALLOCATION FOR TWO
SCHOOL DISTRICTS. LAST I THINK
TWO DUE TO FIRE AND, UH, JUST,
UH AND I HAVE A SCHOOL DISTRICT.
IN BONNIE DOON, WHERE 27% OF THE
ENROLLED STUDENTS LIVED IN A
HOUSE THAT BURNED DOWN AND THE
ONLY THING THAT HAS SAVED THEM
HAS BEEN THE ROLLING AVERAGE
THAT WE'VE BEEN DONE ON A Dð A,
BUT THAT'S GOING TO GET TO THE
OTHER END OF IT, AND THEY CAME
TO ME AND SAID, WHAT WERE YOU
SLEEPING THROUGH THAT? WHY
WEREN'T WE ADDED TO THAT? SO I
WILL BE VIGILANT THIS YEAR THAT
IF THERE'S ANYTHING THAT THAT,
UH, BONNIE DONORS INCLUDED, BUT
THAT'S ANOTHER THING THAT WE ALL
NEED TO THINK ABOUT BECAUSE
THERE ARE DISPROPORTIONATE FOR
THINGS LIKE THAT. YES AND WE'VE
ACTUALLY RECENT HISTORY,
ESPECIALLY WITH FIRES. WE WE'VE
GOT SOME DECENT HISTORY BEHIND
POLICY AND FISCAL THINGS TO LOOK
AT TO MODEL. UM AFTER THE
CAMPFIRE AND PARADISE PIONEER
SCHOOL DISTRICT AND THAT IN
BUTTE COUNTY AS WELL, WE HAVE
SOME EXAMPLES WE COULD. WELL, I
HAD THE MISFORTUNE OF STILL
BEING RESOURCES SECRET SECRET
AND I WENT UP. TWO OR THREE DAYS
AFTER THE PLACE WE WERE WAS AN
ELEMENTARY SCHOOL PLAYGROUND FOR
THE ONLY THING THAT SURVIVED
FROM THE ENTIRE ELEMENTARY
SCHOOL WAS A COUPLE OF JUNGLE
GYMS THAT WERE OUT ON THE
PAVEMENT. IT WAS JUST GONE. YOU
KNOW, SO WELL, I WAS GONNA ASK
SENATOR MIN IF HE HAS ANY
QUESTIONS, AND HE PROBABLY FEELS
RESCUED BY THE FACT THAT I TOOK
SO LONG. SO UM, I APPRECIATE YOU
BEING HERE AND LOOK FORWARD TO
CONTINUING SOME OF THOSE
CONVERSATIONS. THANK YOU,
SENATOR. THEN WE ARE GOING TO
MOVE TO ISSUE THREE. WHICH SOME
PEOPLE THINK IS THE MAIN EVENT.
UH UM IT'S THE PROPOSITION 98
OVERVIEW AND STRUCTURE WE HAVE
ALEX FROM THE DEPARTMENT OF
FINANCE KENT, KAN. FROM THE
LEGISLATIVE ANALYSTS OFFICE, AND
I'M SURE THERE'S OTHER PEOPLE
THAT WILL BE HERE FOR THIS. AND,
UH, LET'S START WITH OPENING
STATEMENTS ON THIS AND
DEPARTMENT OF FINANCE. WELCOME
TO THE COMMITTEE. THANK YOU, MR
CHAIR. UH ALEX SHOW WITH THE
DEPARTMENT OF FINANCE. UH, SO
I'M GOING TO PROVIDE AN OVERVIEW
OF THE PROP 98 GUARANTEE, UM,
INCLUDING PROPOSED RESERVE
WITHDRAWALS AND ACCOUNTING
PROPOSAL RELATED TO THE 2223
GUARANTEE. UH, AND OTHER
SOLUTIONS AND INVESTMENTS IN THE
GOVERNOR'S BUDGET FOR Tð Kò TO
12 AND COMMUNITY COLLEGES. SO
THE GOVERNOR'S BUDGET FORECAST
THAT THE PROP 98 GUARANTEE
AMOUNT FOR 2425 WILL BE 109
POINT 1,000,000,800 MILLION MORE
THAN FORECAST AT THE 2020 THREE
BUDGET ACT ALL BUDGET YEARS
REMAIN IN TEST ONE. UM IN THE
THREE YEAR BUDGET WINDOW, THE
GOVERNOR'S BUDGET SHOWS A
DECLINE OF 11 BILLION COMPARED
TO THE BUDGET ACT WITH ABOUT 8
BILLION OF THAT ATTRIBUTED TO
2220 THREE. UH, THE BUDGET ALSO
PROPOSES STATUTORY CHANGES TO
ADDRESS THE ROUGHLY $8 BILLION
DECREASE IN 2220 THREE TO AVOID
IMPACTING EXISTING SCHOOL
BUDGETS IN THE PAST YEAR AND
SUBSEQUENT YEARS WILL PROVIDE
MORE DETAILS ON THAT LATER, UM
IN THE PRESENTATION SO TO FULLY
FUND THE LOCAL CONTROL FUNDING
FORMULA, L èC FF AND THE
STUDENT CENTERED FUNDING FORMULA
S¼ èC FF. THE GOVERNOR'S BUDGET
ALSO INCLUDES WITHDRAWALS FROM
THE RAINY DAY FUND FOR SCHOOLS
OF ROUGHLY THREE BILLION IN 2324
AND 2.7 BILLION IN 2425,
RESULTING IN A REVISED ACCOUNT
BALANCE OF MORE THAN 3.8 BILLION
IN 2425 AND AGAIN, I'LL PRO
PROVIDE MORE DETAIL ON THAT
LATER IN THE PRESENTATION. UM SO
DESPITE THE DROP IN THE PROP 98
GUARANTEE LEVEL PER PEOPLE
FUNDING IS AT ONE OF ITS HIGHEST
EVER ANNUAL AMOUNTS WITH ABOUT
17,600 PROP 98 FOR STUDENTS AND,
UH OVER 23,500 PER STUDENT WENT
ACCOUNTING FOR ALL FUNDING
SOURCES. UH SO MOVING TO
ATTENDANCE, THE PERCENTAGE DAILY
OR THE PERCENTAGE CHANGE IN
AVERAGE DAILY ATTENDANCE A Dð A
FROM 2324 TO 2425 IS EXPECTED TO
BE NEGATIVE 0.0 THREE PERCENT,
SO, INDICATING THE SLIGHT
DECLINE. UM A Dð CONTINUES TO BE
A LOWER SHARE OF ENROLLMENT THAN
BEFORE. COVID-19 UM, HOWEVER, A
REDUCTION IN COVID-19, UH,
RELATED ABSENCES IS ASSUMED,
STARTING WITH 2223, AND IT IS
ANTICIPATED TO CONTINUE. UH, SO
FOR THE PROP 90 RE BENCH, THE
GUARANTEE WAS RE BENCHED TO
REFLECT, UM, THE CONTINUED
IMPLEMENTATION OF UNIVERSAL
TRANSITIONAL KINDERGARTEN AND
PROPOSITION 28. SPECIFICALLY THE
GUARANTEE WAS REEN IN 2425 TO
INCLUDE AN INCREASE OF 938
MILLION FOR PROP 28 AND ABOUT
1.8 BILLION TO REFLECT CONTINUED
UNIVERSAL TRANSITIONAL
KINDERGARTEN IMPLEMENTATION. THE
REV. BENCH GUARANTEE INCREASED
AS A SHARE OF GENERAL FUND
REVENUES FROM 38.6% TO ABOUT
39.5. AH, SO THE GOVERNOR'S
BUDGET PROPOSES SEVERAL
BUDGETARY ACTIONS, INCLUDING
SOLUTIONS TO AVOID NEGATIVELY
IMPACTING SCHOOL FUNDING. UM,
DUE TO THE REVISED GUARANTEE
AMOUNTS, UM, GIVEN THE CURRENT
FISCAL OUTLOOK, THESE SOLUTIONS
WERE CAREFULLY CONSIDERED AND
ARE INTENDED TO MITIGATE
DISRUPTION TO EDUCATION PROGRAMS
BASED ON AVAILABLE RESOURCES. SO
ON THE Kò 12 SIDE, THIS INCLUDES
AN ONGOING REDUCTION OF 1.4
BILLION FOR THE L èC FF TO
REFLECT DOWNWARD GROWTH
ADJUSTMENTS DUE TO DECLINE IN
ENROLLMENT. IN PRIOR YEARS AND
OF 0.76% COST OF LIVING
ADJUSTMENT. AN ONGOING INCREASE
OF ROUGHLY 796 MILLION FOR THE L
èC FF TO SUPPORT TRANSITIONAL
KINDERGARTEN EXPANSION AND ADULT
TO STUDENT RATIO REDUCTION. AN
INCREASE OF 122.2 MILLION FOR
UNIVERSAL SCHOOL MEALS. AND AN
ONGOING INCREASE OF ROUGHLY 65
MILLION TO FUND A 0.76% COST OF
LIVING ADJUSTMENT IN CASE LOAD
ADJUSTMENTS FOR VARIOUS
CATEGORICAL PROGRAMS. UM, FOR
SOLUTIONS ON THE Kò 12 SIDE.
THESE INCLUDE SAVINGS OF 445
POINT 7,000,001 TIME PROP 98
GENERAL FUND FOR THE CALIFORNIA
STATE PRESCHOOL PROGRAM. UH, A
RAINY DAY FUND WITHDRAWAL OF
APPROXIMATELY 5 BILLION INTO
ROUGHLY $7 BILLION PAST YEAR
ACCOUNTING SOLUTION THAT AGAIN
WE GET TO SHORTLY, UM AND THEN
RE APPROPRIATION AND REVERSION
FUNDING TOTALING 36.6 MILLION TO
SUPPORT ONGOING L èC FF COSTS
IN 2425. ON THE COMMUNITY
COLLEGE SIDE. UM SOME OF THE TOP
ITEMS INCLUDE AN ONGOING
INCREASE OF ROUGHLY 69.1 MILLION
TO FUND A 0.76% COST OF LIVING
ADJUSTMENT FOR THE STUDENT
CENTERED FUNDING FORMULA. UH, A
ONE TIME INCREASE OF 60 MILLION
TO SUPPORT COMMUNITY COLLEGE
NURSING PROGRAMS APPROVED AT THE
2023 BUDGET ACT AND THEN AN
ONGOING INCREASE OF ROUGHLY 29.6
MILLION TO SUPPORT ENROLLMENT
GROWTH WITHIN THE S¼ EFF. UM SO
SIMILAR TO Kò 12 SOLUTIONS ON
THE COMMUNITY COLLEGE SIDE
INCLUDE A RAINY DAY FUND
WITHDRAWAL OF APPROXIMATELY 722
MILLION AND ROUGHLY 910 MILLION
FOR THE PAST YEAR ACCOUNTING
SOLUTION. UH, SO NOW I'LL I'LL
TALK A LITTLE BIT MORE ABOUT,
UH, THE PROPOSAL AND THE
GOVERNOR'S BUDGET RELATED TO THE
PUBLIC SCHOOL SYSTEM
STABILIZATION ACCOUNT. UH, THE
STATE'S PROPOSITION 90 RAINY DAY
FUND. UM SO, UH, DEPOSITS INTO
THE RAINY DAY FUND ARE REQUIRED
WHEN CAPITAL GAINS REVENUES ARE
EQUAL TO 8% OR MORE OF GENERAL
FUND REVENUE. THE 2023 BUDGET
ACT PROJECTED A TOTAL BALANCE OF
10.8 BILLION INTO THE RAINY DAY
FUND. UM, SO THE GOVERNOR'S
BUDGET REFLECTS REVISED DEPOSITS
BASED ON UPDATED LOWER CAPITAL
GAINS REVENUES SO REVISED
DEPOSITS INTO THE RAINY DAY FUND
OF THREE 139 MILLION IN 2220
THREE AND 288 MILLION IN 20,
THREE 24. ADDITIONALLY THE
GOVERNOR'S BUDGET ALSO INCLUDES
A MANDATORY DEPOSIT OF 751
MILLION INTO THE RAINY DAY FUND
IN 2425. SO THE GOVERNOR'S
BUDGET ALSO INCLUDES
DISCRETIONARY WITHDRAWALS. UM,
FROM THE RAINY DAY FUND OF
ROUGHLY 3 BILLION IN 20, THREE
24 IN 2.7 BILLION IN 2425,
RESULTING IN A BALANCE OF OVER
THREE 0.8 BILLION IN 2425. UH,
SO THESE DISCRETIONARY
WITHDRAWALS WOULD BE USED TO
FUND LOCAL CONTROL FUNDING
FORMULA AND STUDENT CENTERED
FUNDING FORMULA COST IN THE
FISCAL YEARS IN WHICH THEY ARE
MADE. UH SO YOU KNOW,
MAINTAINING PREDICTABILITY AND
STABILITY FOR FUNDING THAT
SUPPORTS, UH, YOU KNOW, TEACHER
SALARIES, INSTRUCTIONAL
MATERIALS, UH, TRANSPORTATION,
OTHER CRITICAL EDUCATIONAL
COSTS. THEN FINALLY, THE REVISED
RESERVE BALANCE OF 5.7 BILLION
IN 2324 CONTINUES TO TRIGGER
SCHOOL DISTRICT RESERVE CAP
REQUIREMENTS IN 2425. THESE
REQUIREMENTS LIMIT THE AMOUNT OF
FUNDS DISTRICTS CAN MAINTAIN, UM
AS DISCRETIONARY RESERVES FROM
ONE YEAR TO THE NEXT. UM, BUT WE
DON'T ANTICIPATE THIS CREATING A
, UH, SIGNIFICANT HARDSHIP FOR
MOST DISTRICTS. UH, AND THEN,
FINALLY FOR THE RAINY DAY FUND.
WE JUST NOTE OR THE
ADMINISTRATION WOULD NOTE THAT
THE PROPOSED DISCRETIONARY
WITHDRAWALS WOULD REQUIRE THE
DECLARATION OF A FISCAL
EMERGENCY BY THE GOVERNOR. UH,
OK, SO FINALLY I WILL MOVE ON
TO, UM THE ACCOUNTING SOLUTION,
UM IN THE PAST YEAR. SO JUST A
LITTLE CONTEXT DUE TO THE WINTER
STORMS IN 2020 THREE, THE
INTERNAL REVENUE SERVICE
EXTENDED THE TAX FILING
DEADLINES FOR THE 2022 TAX YEAR
FROM APRIL 15TH 2020 THREE TO
NOVEMBER 16TH 2020 THREE. UH
BECAUSE OF THESE EXTENSIONS,
ACTUAL 2022 TAX DATA WAS NOT
AVAILABLE AT THE TIME THAT THE
2023 BUDGET ACT WAS DETERMINED
AND DUE TO THIS LACK OF ACTUAL
DATA, THE ESTIMATED MINIMUM
FUNDING OBLIGATION FOR 2223
APPROPRIATED IN THE 2023 BUDGET
WAS ROUGHLY 8 BILLION ABOVE THE
ACTUAL MINIMUM FUNDING
OBLIGATION. SO THE GOVERNOR'S
BUDGET PROPOSES AN ACCOUNTING
SOLUTION FOR THE 8 BILLION PROP
98 PROBLEM IN 2223. THE INTENT
OF THIS SOLUTION IS TO AVOID
NEGATIVELY IMPACTING EXISTING
SCHOOL BUDGETS, UM, AND WOULD
NOT REQUIRE LE A S¼ TO RETURN
ANY FUNDING THAT WAS ALREADY
ALLOCATED IN 2220 THREE. UM SO I
THINK THIS PROPOSAL CAN BE
UNDERSTOOD AS HAVING THREE MAIN
COMPONENTS OF THE FIRST
ACCOUNTING FOR 2223 AT THE STATE
LEVEL. UH, SECOND FOR 2220 THREE
AT THE LOCAL LEVEL AND THIRD. UH
YOU KNOW, SOLVING THIS PROBLEM
SHOULD TAXES BE DELAYED IN A
FUTURE YEAR. UM, SO WITH REGARDS
TO THE FIRST COMPONENT THE
BUDGET, UH, PROPOSES TO
RECOGNIZE THE REDUCED 2220 THREE
FUNDING AT THE STATE LEVEL. UM
BEGINNING IN 2526 IN EQUAL
AMOUNTS. NON PROPOSITION 98
GENERAL FUND FOR FIVE
CONSECUTIVE YEARS. UH, SO THIS
WOULD BE ABOUT 1.4 BILLION EACH
YEAR FOR FIVE YEARS FOR Kò TO 12
ABOUT 182 MILLION EACH YEAR FOR
FIVE YEARS FOR COMMUNITY
COLLEGES. UH, BECAUSE ALL THREE
YEARS IN THE BUDGET WINDOW ARE
IN TEST ONE. THE REDUCTION IN
2220 THREE DOES NOT IMPACT THE
GUARANTEE CALCULATION FOR 2324
OR 2425. UM AND THEN, UNDER THIS
PROPOSAL, NÓ ADDITIONAL CASH
ALLOCATIONS WILL GO TO LOCAL
EDUCATIONAL AGENCIES OR
COMMUNITY COLLEGE DISTRICTS. UH
IN ANY OF THE OUT YEARS IN LE, A
WILL NOT HAVE TO RETURN ANY CASH
TO THE STATE. UM, SO FOR THE
SECOND COMPONENT, UM UH, THIS IS
LANGUAGE TO ALLOW LE A S¼ AND
COMMUNITY COLLEGES, UH, TO
CONTINUE RECOGNIZING THE EXCESS
CASH RECEIVED IN 2223 AS
RECEIVED IN THAT FISCAL YEAR.
UH, SO IT'S NOT TO REQUIRE THEM
TO REOPEN THEIR BOOKS. UH, MAKE
ADDITIONAL PRIOR YEAR ACCOUNTING
CHANGES. UH AND THEN THIRD
FINALLY, SHOULD THE SPECIFIC
SITUATION ARISE IN THE FUTURE.
THIS LANGUAGE ALSO PROVIDES A
GENERAL METHODOLOGY, UM, TO
ACCOUNT FOR FUNDING APPROPRIATED
ABOVE THE MINIMUM GUARANTEE IN A
SIMILAR MANNER, AS I JUST
DESCRIBED RIGHT, PROVIDED THAT
CERTAIN REQUIREMENTS ARE MET. UM
SO TO CONCLUDE THIS, YOU KNOW
THE SOLUTION IS INTENDED TO
MITIGATE HARM TO SCHOOL
DISTRICTS. COMMUNITY COLLEGES,
UM BY USING ACCOUNTING
MECHANISMS AT THE STATE AND
LOCAL LEVEL. UH THE PROPOSAL
AVOIDS SIGNIFICANT CUTS TO
EDUCATION PROGRAMS ALLOW SCHOOL
DISTRICTS TO KEEP PRIOR YOUR
BUDGETS INTACT AND PROVIDES A
FRAMEWORK UH, TO SOLVE FOR THIS
ISSUE IF TAX FILE AND EXTENSIONS
ARE DELAYED IN FUTURE YEARS, AND
THAT THAT CONCLUDES MY COMMENTS,
HAPPY TO TAKE QUESTIONS AT THE
APPROPRIATE TIME, THANK YOU VERY
MUCH. UH THEN WE'LL MOVE TO THE
LEGISLATIVE ANALYST. THANK YOU.
CHAIR KEN, KAN WITH THE
ANALYST'S OFFICE. WE HAVE A
HANDOUT THAT COVERS OUR KEY
POINTS. I THINK THE DEPARTMENT
OF FINANCE GAVE YOU A GOOD
OVERVIEW OF THE MAJOR MOVING
PIECES IN THIS BUDGET, UM FOR
JUST A LITTLE BIT OF HISTORICAL
PERSPECTIVE. THE REDUCTION IN
THE GUARANTEE IN THE PRIOR YEAR
REALLY IS UNPRECEDENTED. THE
LAST TIME THE STATE EXPERIENCED
A DROP IN THE PRIOR YEAR, THE
GUARANTEE DECLINED THREE 179
MILLION IN 2220 THREE. WE'RE NOW
TALKING ABOUT 9.1 BILLION THE
GOVERNOR'S BUDGET DOES RECOGNIZE
THAT SHORTFALL, BUT WE THINK
REVENUES ARE LIKELY TO COME IN
COME IN EVEN LOWER THAN THE
STATE ANTICIPATES IN 20 THREE 24
AND 2425. IF YOU TURN TO PAGE
THREE OF OUR HANDOUT, THE
GOVERNOR'S BUDGET HAD
ANTICIPATED A STRONG REBOUND IN
STATE TAX COLLECTIONS THIS YEAR,
BUT WE'RE NOT SEEING THOSE
INCREASES MATERIALIZE. UH, TWO
WEEKS AGO, WE RELEASED OUR
LATEST ESTIMATES OF REVENUE.
THEY'RE 15 POINT THREE BILLION
BELOW THE GOVERNOR'S BUDGET
ESTIMATE IN 2000, THREE 124 AND
ANOTHER 8.44 BILLION LOWER IN
2425, THOSE LOWER ESTIMATES THAT
NOT ONLY THE RECENT TAX
COLLECTION TRENDS BUT WEAKNESS
AND SOME ECONOMIC INDICATORS
THAT ARE IMPORTANT FOR STATE
REVENUE. IF YOU TURN THE PAGE
FOUR OF OUR HAND OUT, UH, BASED
ON THOSE REVENUE ESTIMATES, WE
ANTICIPATE THE PROPOSITION 98
GUARANTEE IS 5.2 BILLION LOWER
THAN THE GOVERNOR'S BUDGET THIS
YEAR AND 2.5 BILLION LOWER IN
2425. THOSE REDUCTIONS REFLECT
OUR ESTIMATES OF GENERAL FUND
TAX REVENUE, AS WELL AS A SMALL
OFFSETTING INCREASE IN LOCAL
PROPERTY TAX ESTIMATES. UH, THE
FIGURE AT THE BOTTOM OF THAT
PAGE SHOWS HOW THOSE ESTIMATES
HAVE BEEN CHANGING, SO THE
GOVERNOR'S BUDGET BROUGHT DOWN
ESTIMATES OF PROPOSITION 98
SIGNIFICANTLY COMPARED TO JUNE.
OUR ESTIMATES ARE DOWN AN
ADDITIONAL 7.7 BILLION. THE
REALLY KEY DIFFERENCE HERE IF
YOU LIKE TO THINK IN TERMS OF
YEAR TO YEAR PERCENTAGE GROWTH
IS THAT UNDER THE GOVERNOR'S
BUDGET, THE GUARANTEE IN 20
THREE 24 WOULD GROW 7.4% WHEREAS
WE'RE ANTICIPATING GROWTH OF
ONLY 2.1. UH, TURNING TO THE
SPENDING PROPOSALS ON THE
OVERALL ARCHITECTURE OF THIS
PLAN ON PAGE 5 13.7 BILLION IN
REDUCTIONS IN SOLUTIONS
AFFECTING SCHOOLS. THE TWO
BIGGEST ONES ARE THAT COST SHIFT
MANEUVER AND THE DISCRETIONARY
WITHDRAWAL. TURNING TO PAGE SIX.
THIS BUDGET THIS EVEN THOUGH
THERE IS, UH EVEN THOUGH THE
PROPOSITION 98 GUARANTEE IS
DROPPING, THE BUDGET HAS 1.4
BILLION IN NEW SPENDING ON Kò 12
PROGRAMS WITHIN THE PROPOSITION,
98 GUARANTEE, MORE THAN HALF OF
THAT IS ONGOING, LARGELY FOR THE
COST OF ADJUSTMENT. THE OTHER
PORTION IS ONE TIME LARGELY FOR
A SECOND ROUND OF ZERO EMISSIONS
SCHOOL BUS GRANTS. UH, PAGE
SEVEN IS A LIST OF ALL THE
INDIVIDUAL SOLUTIONS AND
PROPOSALS YOU'LL COVER ALL OF
THOSE, I THINK IN FUTURE
HEARINGS TODAY. UH, TURNING TO
OUR ASSESSMENT ON PAGE EIGHT.
THERE ARE A FEW ELEMENTS OF THIS
BUDGET PLAN WE THINK ARE
POSITIVE. THE BUDGET DOES ALIGN
GENERAL FUND SPENDING ON SCHOOLS
WITH THE LOWER ESTIMATES OF THE
PROPOSITION 98 GUARANTEE, GIVEN
OUR ESTIMATE THAT THE STATE
FACES A 70 THREE BILLION DOLLARS
SHORTFALL THAT SEEMS LIKE A
NECESSARY STEP FOR BALANCING THE
BUDGET. WE ALSO, UH UM. I THINK
THERE'S A FEW PROMISING IDEAS IN
THIS BUDGET. WE SHARE THE
ADMINISTRATION'S ASSESS
ASSESSMENT THAT THIS IS AN
APPROPRIATE TIME TO WITHDRAW
FUNDING FROM THE PROPOSITION 98
RESERVE BECAUSE THAT REQUIRES
THE GOVERNOR TO DECLARE A BUDGET
EMERGENCY. WE THINK IT'S
POSITIVE THAT THE ADMINISTRATION
IS SIGNALING IT'S OPEN TO THAT.
AND WE ALSO THINK THE PLAN TO
FIND SAVINGS IN STATE PRESCHOOL
IS REASONABLE, GIVEN THAT THE
FUNDING IN THAT PROGRAM EXCEEDS
THE COST OF EXISTING RATES AND
SLOTS. UH, TUNING TO OUR
CONCERNS THE START ON PAGE NINE.
MAYBE A FIRST CONCERN IS THAT WE
THINK THERE'S GOING TO BE LESS
PROPOSITION 98 FUNDING AVAILABLE
BY JUNE. OUR ESTIMATES AGAIN ARE
7.7 BILLION LOWER. WE ALSO HAVE
SIGNIFICANT CONCERNS WITH THE
COST SHIFT MANEUVER. MAYBE
PERHAPS THE MOST NOTABLE IS THAT
IT'S WORSENING FUTURE STATE
DEFICITS. AS YOU MENTIONED AT
THE BEGINNING, THE STATE IS
LOOKING AT ANNUAL OPERATING
DEFICITS OF AROUND $30 BILLION
PER YEAR. OVER THE NEXT COUPLE
OF YEARS. THIS PROPOSAL IS
CONTRIBUTING TO THAT. WE THINK
THIS IS BAD FISCAL POLICY, THE
STATE HERE IS EFFECTIVELY
CREATING A NEW KIND OF BINDING
OBLIGATION UPON ITSELF. THIS
PROPOSAL IS DIFFERENT FROM
TRADITIONAL BORROWING, BECAUSE
WE'RE NOT PAYING AN EXTERNAL
CREDITOR. BUT EVENTUALLY THE
BILL COMES DUE AND THE STATE
WILL HAVE TO REPAY ITSELF FOR
THE FUTURE REVENUES. AND WE'RE
ALSO CONCERNED BY THE PRECEDENT.
ADOPTING THIS PROPOSAL COULD
CREATE EVEN MORE BUDGET PRESSURE
BY SETTING UP AN EXPECTATION
THAT THE STATE WOULD ADOPT
SIMILAR MANEUVERS LIKE THIS, UH,
EITHER FOR SCHOOLS OR OTHER
PROGRAMS IN THE BUDGET IN THE
FUTURE. AH, SEPARATE FROM THAT
ISSUE. WE'RE CONCERNED THAT THE
BUDGET IS PROPOSING NEW SPENDING
WHEN THE STATE CANNOT EVEN
AFFORD ITS EXISTING PROGRAMS
TURNING TO PAGE 10, AS YOU KNOW,
FROM YOUR EXPERIENCE, THE STATE
HISTORICALLY HAS TRIED TO
CONTAIN SPENDING DURING TIGHT
FISCAL TIMES. DURING THE GREAT
RECESSION, FOR EXAMPLE, IT
AVOIDED NEW SCHOOL COMMITMENTS.
IT SUSPENDED THE COLA. IT
REDUCED CATEGORICAL PROGRAMS,
AND THE NEW SPENDING THAT'S
PROPOSED IN THIS BUDGET MAKES
ADDRESSING THE SHORTFALL THAT
WE'RE FACING NOW EVEN MORE
DIFFICULT. ANOTHER CONCERN
RELATED TO THE NEW SPENDING IS
THAT THIS BUDGET IS RELYING ON
2.2 BILLION IN ONE TIME FUNDS TO
PAY FOR ONGOING PROGRAM COSTS,
AND THAT'S GOING TO SET UP A
SHORTFALL IN 2526 WHEN THOSE
ONGOING COSTS CONTINUE, AND THE
ONE TIME FUNDING EXPIRES. UH,
OUR BOTTOM LINE HERE IS THAT THE
STATE IS GOING TO NEED
SIGNIFICANTLY MORE REDUCTIONS IN
SOLUTIONS BY THE TIME YOU REACH
AN AGREEMENT WITH THE GOVERNOR
ON A ON A BALANCED BUDGET BY
JUNE. SO TURNING TO OUR
RECOMMENDATIONS ON PAGE 11,
WE'RE WE'RE OUTLINING AN
ALTERNATIVE APPROACH. UH, ONE.
WE THINK THAT WOULD PRESERVE
CORE PROGRAMS AT EXISTING LEVELS
AND ALSO HELP STABILIZE THE
BUDGET MOVING FORWARD AS A
STARTING POINT, WE'D RECOMMEND
REJECTING THE COST SHIFT
MANEUVER AS AN ALTERNATIVE. WE
RECOMMEND USING THE RESERVE
THRALL TO ADDRESS THE SHORTFALL
IN 2220, THREE AND ANY OTHER
SAVINGS THE STATE CAN IDENTIFY.
I WOULD RECOMMEND REJECTING ALL
OF THE NEW SPENDING INCREASES IN
THIS BUDGET, INCLUDING THE COLA,
WE UNDERSTAND THE DIFFICULTY
THAT CREATES FOR DISTRICT
BUDGETS AND THE COMMENTS BY MIKE
FEIN. EARLIER, UM BUT. WE THINK
THAT REDUCING THE COLI IS THE
MOST STRAIGHTFORWARD WAY OF
ACKNOWLEDGING THAT THE STATE IS
HAVING DIFFICULTY SUSTAINING ITS
EXISTING PROGRAMS. AS FOR THE
OTHER INCREASES, WE THINK THOSE
MAY HAVE MERIT IN FUTURE YEARS,
BUT THEY SEEM UNAFFORDABLE UNDER
OUR CURRENT PROJECTIONS. UH,
ADOPTING ALL OF THOSE, UH,
RECOMMENDATIONS, THOUGH. STILL
THESE LEAVES THE STATE NEEDING
MANY MORE SOLUTIONS. AND I
WANTED TO BRIEFLY HIGHLIGHT SOME
OF THE, UH, TOOLS IN THE TOOL
KIT. UH, FIRST, THE STATE HAS
ABOUT 4.5 BILLION IN COMPETITIVE
GRANTS THAT IT HAS NOT YET
ALLOCATED TO SCHOOLS. THOSE ARE
ON PAGE 12 OF YOUR HANDOUT AND
WITH WE HAVE THE SPECIFIC
PROGRAMS AND AMOUNTS WE'D
SUGGEST GOING THROUGH THAT LIST
AND WE'RE SENDING ANY GRANT
AMOUNTS THAT AREN'T YOUR VERY
HIGHEST PRIORITY. THE STATE ALSO
HAS A FEW PROGRAMS WHERE IT
COULD MAKE TEMPORARY REDUCTIONS
AND EXPECT DISTRICTS TO OPERATE
THE UNDERLYING ACTIVITIES. USING
UNSPENT CURRY FORWARD FUNDING. I
WILL HAVE MORE INFORMATION ON
THAT IN A FEW WEEKS, BUT TWO OF
THE PROGRAMS WHERE WE THINK THAT
FUNDING EXISTS INCLUDE THE
EXPANDED LEARNING OPPORTUNITIES
PROGRAM AND THE SPECIAL
EDUCATION EARLY INTERVENTION
GRANT. UH, THIRD, THE STATES
PROVIDED SOME SIGNIFICANT
INCREASES TO FIVE MAJOR PROGRAMS
. OVER THE PAST FEW YEARS. WE'VE
LISTED THOSE ON PAGE 13. THEY
INCLUDE THE EXPANDED LEARNING
OPPORTUNITIES PROGRAM SPECIAL
EDU. UH STATE PRESCHOOL SCHOOL,
NUTRITION, SCHOOL TRANSPORTATION
AND TRANSITIONAL KINDERGARTEN
AND ALL OF THOSE AREAS. WE THINK
YOU HAVE WAYS OF ACHIEVING MOST
OF YOUR CORE OBJECTIVES BUT AT A
SOMEWHAT LOWER COST. AND THEN
FINALLY, THE STATE CURRENTLY
PROVIDES ABOUT 1.3 BILLION TO
FUND THREE HISTORICAL ADD ONS TO
THE LOCAL CONTROL FUNDING
FORMULA. THESE ARE BASED ON THE
SIZE OF PROGRAMS DISTRICTS
OPERATED DECADES AGO. UH, NOT
THE STUDENTS OR PROGRAMS THEY
HAVE CURRENTLY AND IF YOU WERE
TO ELIMINATE OR SCALE BACK THOSE
ADD ONS THAT WOULD PROVIDE SOME
ONGOING SAVINGS AND REDUCE SOME
OF THE DISPARITIES IN THE L èC
FF. ADOPTING SOME COMBINATION OF
THOSE OPTIONS WITH BOTH. I HELP
PRESERVE FUNDING FOR YOUR CORE
PROGRAMS AND ALSO SET UP A
BETTER CHOICES AND A LEFT LESS
DIFFICULT BUDGET SITUATION NEXT
YEAR. SO THAT CONCLUDES OUR HIGH
LEVEL ASSESSMENT. HAPPY TO TAKE
QUESTIONS. THANK YOU VERY MUCH,
AND I'M GOING TO HAVE SOME
QUESTIONS, BUT I FEEL LIKE ON
FUNDING MANEUVER. I SHOULD JUST
MAKE COMMENTS BECAUSE IT'S
UNDERSTOOD FAIRLY CLEARLY WHAT
IT IS AND IT IT, HE I. I WAS
SMILING WHEN IT WAS SAID THAT
THE SCHOOLS KIND OF LIKE IT
BECAUSE OF COURSE THEY WOULD,
BECAUSE IT RELIEVES SCHOOLS FROM
THE DEFICIT ON THE $8 BILLION,
AND IT SHIFTS TO THE GENERAL
FUND, WHICH IS, AS I SAID IN THE
OPENING COMMENTS AS CHILD CARE,
HEALTH. OTHER THINGS FOR THE
KIDS, BUT IT'S NOT THE SCHOOLS
TO TAKE THE HIT. THE GENERAL
FUND TAKES THE HIT AND IT'S A
CASH. ISSUE IT'S REALLY WE HAVE
THE CASH. WE CAN SPEND THE CASH.
WE JUST HOPE TO WRITE IT OFF.
THREE WAYS IS ALONE IN A NUMBER
OF OUT YEARS AND I'M CONFIDENT
THERE'S A VIEW UNSTATED VIEW
THAT HOPEFULLY AT SOME POINT
THINGS GET A LOT BETTER AND YOU
CAN WRITE IT OFF. BUT AND IT'S
OUT FAR ENOUGH THAT THAT COULD
COME BACK TO DO THAT. BUT I SORT
OF AGREE. IT IS NOT A GOOD UH UM
PRECEDENT PART OF OUR CHALLENGE
IN ALL FIVE SUBCOMMITTEES IS
DOING THINGS THAT LOWER THE
DEFICIT IN THE OUT YEAR SO THAT
WE'RE NOT FACING THE EXACT SAME
SITUATION BECAUSE WE JUST
PATCHED IT TOGETHER WITH ONE
TIME FUNDS TO GET OUT OF THIS
YEAR, AND SO IT JUST RAISES, UM.
GREAT CONCERNS AND IT IT'S HARD
TO SEE DOING IT. BUT I ALSO I'VE
SORT OF PRIVATELY MADE THIS EDGY
COMMENT THAT WHEN I WAS BUDGET
CHAIR AND GOVERNOR
SCHWARZENEGGER WAS GOVERNOR, HE
WOULD PROPOSE ALL THESE THINGS.
AND THEN HE WOULD WINK AT US
AFTER JANUARY, AND THERE JUST
WASN'T A WINK THIS YEAR TO KNOW
WHETHER, UH IF THERE WAS A
RECOGNIZED $38 BILLION DEFICIT,
WHICH WAS LOWER THAN WHAT THE
LEGISLATIVE. SAID ONLY 8
BILLION OF THE 38 BILLION ARE IN
ACTUAL REDUCTIONS, AND SO IT
DOES NOT REALLY AFFECT THE OUT
YEAR IN A WAY THAT WE ARE NOT
GOING TO BE BACK IN THE SAME
SITUATION. AND SO, UM, I WOULD
HAVE GRAVE CONCERNS WITH THIS
AND WHAT REALLY HESITATE DOING
IT. BUT IF THE BUDGET DEFICIT
GOES UP TO 70, OR $80 BILLION, I
SUSPECT AT THAT POINT IS GONNA
BE ON THE TABLE TO TRY TO FIGURE
OUT HOW WE NAVIGATE THROUGH IT
SO AS MUCH AS I DON'T LIKE IT
DON'T WANT TO DO IT. DON'T THINK
WE SHOULD DO IT. DON'T THINK
IT'S GOOD PUBLIC POLICY. WE'LL
SEE WHERE WE ARE AND I IN IN MAY
OR JUNE AND THEN MAYBE TO
QUESTIONS THE ONE THING THAT IS
AND I. I HAVE TO SAY I FOLLOWED
EVERYTHING THAT THE DEPARTMENT
OF FINANCE SAID, AND I
UNDERSTOOD IT. AND I THINK I MAY
BE ONE OF 10 PEOPLE. UH UH, THAT
DID THAT ANYWHERE AND SO TRYING
TO MAYBE. IN SOME OF THIS SO
THAT PEOPLE UNDERSTAND THE
DIFFERENCES IS, IS WHAT WE
SHOULD SPEND A LITTLE BIT OF
TIME ON AND THE THING THAT'S
CONFUSING TO ME IS HOW IF YOU
TAKE. 8 BILLION OR 9 BILLION,
DEPENDING ON HOW YOU CALCULATE
IT OUT OF WHAT SCHOOLS WERE
GETTING. AND YOU HAVE THE
GUARANTEE LOWER BY 8 BILLION
BECAUSE OF WHAT WE KNOW ABOUT
2223. HOW DOES THE GUARANTEE GO
UP YEAR TO YEAR AFTER TAKING OUT
AND I SEE THE CHARTS THAT I KNOW
THE LEGISLATIVE ANALYST IS
FLIPPING TO THE PAGE TO TELL ME
WHAT PAGE HIS CHARTS WITH THE
BARS ARE ON. SO THAT THAT WE
KNOW THE DIFFERENCE, BUT I STILL
FIND IT HARD TO UNDERSTAND HOW
THE GUARANTEE GOES UP 10 BILLION
AND MAYBE YOU CAN ALSO ANSWER AS
PART OF THAT THE FACT THAT
PROPERTY TAXES ARE ROBUST AND
THAT THEY ARE PART OF THAT. BUT
HOW DO YOU EXPLAIN TO SOMEBODY
HOW YOU TAKE 8 BILLION OUT AND
GO DOWN. AND YET SOMEHOW THE
GUARANTEE STILL GOES UP. ALEX ST
DEPARTMENT OF FINANCE. UM. SO I.
I THINK ONE OF THE, UM. I GUESS
REQUIREMENTS WITHIN THIS
PROPOSAL IN THE LANGUAGE THAT I
THINK RELATES TO YOUR QUESTION.
IS THAT THE YEAR AFTER THE
IMPACTED FISCAL YEAR, SO IN THIS
CASE, 20 THREE 24 IS IN TEST
ONE. SO WHEN, WHEN THE GUARANTEE
IS IN TEST ONE, THEN AH, THE
THAT YEAR'S GUARANTEE AMOUNT IS
NOT DEPENDENT ON LAST YEAR'S
GUARANTEE AMOUNT IS JUST A
PERCENTAGE OF, UM, GENERAL FUND
REVENUE, SO THE AND FOR THE
TOTALLY UNINITIATED, THERE'S
THREE TESTS AND PROPOSITION 98
TO MAKE DIFFERENT TRIGGERS THAT
PUT YOU IN EACH TEST. AND YOU'RE
SAYING WE WOULD BE IN THAT
PARTICULAR TEST, WHICH DOES WHAT
YOU ARE SAYING. IT DOES. CORRECT
RIGHT? SO IT WOULD JUST BE SO 20
THREE 24 WOULD JUST BE RIGHT
PROPOSITION. I Dð A WOULD BE
CALCULATED AS, UH, YOU KNOW,
PERCENTAGE OF GENERAL FUND
REVENUES IN 23. 24 SO THE
DECREASE IN THE PRIOR YEAR WOULD
NOT AFFECT IT IN 20, THREE 25
AND THE PROPERTY TAX REVENUES
ARE ROBUST TO THE EXTENT THAT
THEY FIT INTO IT. IS THAT
CORRECT? RIGHT IN A IN A IN A Tð
ONE YEAR, RIGHT? PROPERTY TAXES
OFFSET, UM, YOU KNOW, SOME PART
OF THE GENERAL FUND REQUIREMENT.
UM PROPOSITION, 98 AND THEN THE
LEGIS. I DON'T WANNA ELEVATE THE
AND I'LL GIVE YOU A CHANCE TO
COMMENT, BUT THE LEGISLATIVE
ANALYSTS, UM RECENT REVENUE
ESTIMATE, WHICH UPPED THE
PROBLEM BY SIGNIFICANT AMOUNT.
UNDER TEST ONE. WOULD THAT NOT
HAVE AN IMPACT? OR WOULD THE
FACT THAT REVENUES ARE ESTIMATED
LOWER IN THE MIDDLE OF THIS YEAR
AFFECT HOW YOU LOOK GOING
FORWARD ON TEST ONE, AND HOW WE
BUDGET UNDER PROPOSITION 98. UM
SO I THINK, UH, I. I GUESS I
WOULD FIRST SAY THAT, UH, YOU
KNOW THE GOVERNOR'S BUDGET.
REPRESENTS THE ADMINISTRATION'S
LATEST FORECAST AS FAR AS
REVENUES OF THE SHORTFALL GOES.
UM YOU MEAN AS OF JANUARY 10TH?
AS A JANUARY 10TH THE, UM AS FAR
WITH REGARDS TO, UM, REVENUES
FOR, UH 2324. OUR MODEL FINDS
THAT IT'S HIGHLY UNLIKELY. UM,
THAT THE GUARANTEE WOULD COME
OUT OF TEST ONE EVEN WITH A LIKE
A HYPOTHETICAL $25 BILLION
DECREASE IN REVENUES. UH, OUR
MODEL SAYS THE GAME. IT'S ONLY
IF WE WERE IN TEST TWO, OR TEST
THREE THAT A DROP IN REVENUES
WOULD START TO AFFECT WHAT
HAPPENED IN THE SCHOOL FUNDING,
RIGHT. IF IN TEST TWO OR TEST
THREE, UH 420 THREE 24, RIGHT
AND THOSE TESTS, THEN THE
GUARANTEE FOR 2324 USES. UH THE
PRIOR YEAR GUARANTEE AMOUNT IS
KIND OF LIKE AAA STARTING POINT
OR BASELINE. AND MR KAN IS
UNDERSTATED, BUT HE HAS BEEN
CHOMPING AT THE BIT TO COMMENT
ON THESE. I CAN PICK UP THE
LANGUAGE. SO UH, HOW WOULD YOU
LIKE TO COMMENT ON THIS
DISCUSSION AND THESE QUESTIONS?
WELL, I WON'T DISAPPOINT YOU OR
REFER TO A CHART ON PAGE TWO. AH
THE TWO KEY FACTORS THAT ARE
REALLY AFFECTING THESE FORMULAS
ARE THE ASSUMPTIONS ABOUT
GENERAL FUND REVENUE AND
PROPERTY TAX REVENUE. SO THE
REASON THE GOVERNOR HAS SUCH
STRONG GROWTH IN THE GUARANTEE
IN 2324 IS THAT THE BUDGET IS
ANTICIPATING AN 8% YEAR OVER
YEAR INCREASE IN STATE TAX
REVENUE. WE'RE ANTICIPATING
STATE TAX REVENUE IS GOING TO BE
ROUGHLY FLAT. FROM 2220 THREE TO
2324. AND SO THAT'S WHERE OUR
ESTIMATES ARE SO MUCH LOWER. THE
OTHER THING THAT'S HAPPENING AND
THE REASON THEY GUARANTEE IS
STILL GROWING A LITTLE BIT UNDER
OUR ESTIMATES IS THAT THE STATE
IS RECALIBRATING THE GUARANTEE
UP FOR THE IMPLEMENTATION OF
PROPOSITION 28, THE ARTS FUNDING
AND THE EXPANSION OF
TRANSITIONAL KINDERGARTEN. THOSE
THOSE TWO ADJUSTMENTS ARE ADDING
1.6 BILLION TO THE GUARANTEE
THAT WOULDN'T BE THERE IF WE
WEREN'T MAKING THOSE ADJUSTMENTS
, BUT WE ARE MAKING THE
ADJUSTMENTS TO BUMP THE
GUARANTEE UP. ON THE EXPENDITURE
SIDE. THERE'S SIGNIFICANT
EXPENDITURES AGAINST THOSE TWO
ITEMS THAT MIGHT NOT EVEN BE
COVERED BY HOW MUCH THE
GUARANTEE IS GOING UP. IS THAT
CORRECT? THAT'S WHY SOME OF THE
INCREASE IN THE GUARANTEE ISN'T
REALLY AVAILABLE TO SUPPORT
OTHER PROGRAMS. RIGHT WE HAVE
THIS NEW OBLIGATION TO FUND ARTS
EDUCATION THAT'S ABSORBING THAT
PORTION IN MANY WAYS THAT WOULD
SEEM LIKE JUST A PASS THROUGH I.
I IF WE WERE IN, I DON'T KNOW
WHAT THE FINAL NUMBER ENDED UP
BEING IF WE'RE GETTING A BILLION
DOLLARS REVENUE FROM THE
PROPOSITION THAT PASSED, IT'S
GOING TO BE A BILLION DOLLARS OF
EXPENDITURE. IT'S UM THEN LET ME
ASK ANOTHER QUESTION IN RELATION
. TO THE INITIAL DISCUSSION, AND
THAT'S THE WITHDRAWALS FROM THE
EDUCATION, RAINY DAY FUND. UM
JUST FOR THE UNINITIATED, WHAT'S
THE TOTAL BALANCE IN THAT RIGHT
NOW? DO YOU KNOW. UH SO OUR
BALANCE AS OF THE 2023 BUDGET
ACT WAS ABOUT 10.8 BILLION. OK,
SO IF YOU'RE PROPOSING 3 BILLION
IN ONE YEAR AND 2.7 BILLION IN
ANOTHER YEAR, IT ACTUALLY WOULD
PRESUME THAT THE BALANCE COULD
BE SPREAD OUT OVER THREE YEARS
ROUGHLY, OR IF THERE'S LITTLE
ADDITIONS FOR THINGS EVEN A
LITTLE LONGER, SO THAT DIPPING
INTO THE RAINY DAY FUND IS NOT.
WE'RE NOT DISPROPORTIONATELY
SPENDING IT UP. RIGHT WE'RE
TRYING TO CUSHION OUR WAY
THROUGH THREE BUDGET YEARS OR OR
COULD CUSHION OUR WAY THROUGH
THROUGH BUDGET YEARS. IS THAT A
CORRECT WAY OF THINKING ABOUT
IT. UM I YEAH, I GUESS THE SO
THE GOVERNOR'S BUDGET, UH, YOU
KNOW, PROPOSES THE WITHDRAWALS
IN 23. UH, 2324 AND 2425 YOU
KNOW TO COVER COSTS FOR L, èC
FF AND S¼ èC FF. UH I. I THINK
AS FAR AS, UM, THE THREE YEAR
WINDOW FOR 2223. I THINK WE JUST
NOTICED THAT THE REMAINING
BALANCE AFTER THOSE
DISCRETIONARY WITHDRAWALS AFTER
REVISED DEPOSIT AMOUNTS IN, UH,
2220 THREE AND 2324 WOULD NOT BE
ENOUGH TO COVER THE FULL, UM THE
FULL PROBLEM THAT WE'RE WE'RE
LOOKING AT IN 2220, THREE AND MR
KAN IN YOUR STATEMENT AND HAND
OUT, YOU DON'T. YOU WANT US TO
REJECT THE $8 BILLION ACCOUNTING
MECHANISM IN ONE OF THE WAYS IS
TO DO A HIGHER WITHDRAWAL FROM
THE A RAINY DAY ACCOUNT IS NOW
WITH THAT FIT WITH THE OUT YEARS
. YEAH, SO JUST BRIEFLY ON THE
NUMBER. THERE ARE A LOT OF
NUMBERS MOVING AROUND IN THE
PROS PROPOSITION 98 RESERVE. THE
ONE WE WOULD, I THINK, ENCOURAGE
YOU TO THINK ABOUT IS 9.6
BILLION. THAT'S THE TOTAL RE
RESOURCES AVAILABLE. THE
GOVERNORS BUDGET WOULD WITHDRAW
5.7 BILLION LEAVE THREE 0.9
BILLION IN FOR FUTURE USE.
THAT'S WHAT YOU HAVE. THAT'S
THAT'S WHAT'S IN PLAY, BUT HIS
IS OVER TWO YEARS. THE
WITHDRAWAL. SO WHAT WE WOULD
SUGGEST, IS YOU THERE'S ALREADY
A $5.7 BILLION RESERVE
WITHDRAWAL IN THIS BUDGET PUT
THAT TOWARD SOLVING THE PROBLEM
IN 2220 THREE, UH, USE OTHER
SOLUTIONS FOR 2324 AND 2425. WE
ALSO THINK THAT REGARDLESS OF
WHAT WE MIGHT RECOMMEND ABOUT
WITHDRAWING ADDITIONAL AMOUNTS
FROM THE RESERVE, IT'S QUITE
POSSIBLE. MAYBE LIKELY THAT
UNDER OUR REVENUE ESTIMATES YOU
WOULD BE REQUIRED TO TAKE
ADDITIONAL FUNDING OUT OF THAT
RESERVE BECAUSE AT A CERTAIN
POINT THE GUARANTEE DROPS TO A
LOW ENOUGH LEVEL THAT
WITHDRAWALS START TO BECOME
REQUIRED INSTEAD OF JUST
DISCRETIONARY. SO THAT'S
SOMETHING AGAIN THAT YOU MIGHT
SEE IN MAY, EITHER FROM US,
POTENTIALLY FROM THE
ADMINISTRATION TO A LARGER
WITHDRAWAL. NOT SO MUCH AS A
PROPOSAL, BUT JUST BECAUSE
THAT'S WHAT THE FORMULAS
REQUIRE. OK? DO YOU HAVE
ANYTHING YOU WANT TO ADD? THEN
UH, ONE OF THE OTHER THINGS IS.
SAY MR CAPONE THE PAGE NUMBER
THAT THEY ON PAGE 16, AND HE
MENTIONED IT IN HIS STATEMENT.
IF IT'S 16 IS THE RIGHT PAGE. I
HAVE A DIFFERENT THING. IT'S
THE, UH IT'S THE UNSPENT. GRANT
PROGRAMS THAT TOTALED IN ONE
CHART. I THINK SOMETHING LIKE
4.4, OR 4.6 BILLION AND. HE HE?
I GOT CORRECTED IN A PRIVATE
BRIEFING BECAUSE IT WAS LIKE IF
WE WERE TRYING TO DO THE CASH
MANEUVER OF 8 BILLION, I WAS
WONDERING IF WE WENT ANYWHERE ON
THAT LIST. IF IT LOWERS THE 8
BILLION THAT YOU WOULD NEED TO
ACCOUNT FOR IN FUTURE YEARS AND
ITS WHY WE JUST AUTOMATICALLY
ACCEPT THE 8 BILLION AND BUMP IT
TO THE OUT YEARS RATHER THAN DO
SOME OF THE INTERIM SOLUTIONS
AND IT, I GUESS. I KNOW THAT
YOUR JANUARY 10TH BUDGET IS
WHERE YOU ARE. UH UH. BUT WHY
DID YOU NOT CONSIDER SOME OF THE
OPTIONS OF, UH, UNEXPENDED FUNDS
NOT GOING OUT THE DOOR AS PART
OF YOUR SOLUTIONS IN THE BUDGET.
UH I. I THINK I WOULD PROBABLY
JUST SORT OF REITERATE, UM, KIND
OF AT A HIGH LEVEL. THE INTENT
OF THE GOVERNOR'S BUDGET, WHICH
WAS TO YOU KNOW, SOLID FOR THE
BUDGET PROBLEM WE'RE FACING
WHILE MAINTAINING PREDICTABILITY
AND STABILITY FOR SCHOOLS. UM,
YOU KNOW, I, I THINK THAT, UM
THE GOVERNORS. THE GOVERNOR'S
BUDGET. UM YOU KNOW REFLECTS, UH
WE CONSIDER, YOU KNOW, ALL OF
YOU KNOW THE ADMINISTRATION'S
PRIORITIES. WITHIN YOU KNOW, THE
, UH, YOU KNOW THE CONTEXT OF
AVAILABLE RESOURCES, INCLUDING
THE RAINY DAY FUND OR PROPOSED
SOLUTIONS. UM, SO I THINK THAT
IS A. I WOULD JUST COMMENT ON
THAT FOR A SECOND. AND THAT IS,
I BELIEVE ME. I DON'T WANT TO GO
TO THAT LIST. THEY'RE ALL
PRIORITIES. THEY'RE ALL THINGS
WE VALUE. WE WORKED REALLY HARD
TO GET THEM THERE. IT'S JUST
THAT THESE PROCESSES SOMETIMES
TAKE FOREVER AND IT DOESN'T GO
OUT THE DOOR. SO IT'S UNEXPENDED
MONEY AT THE TIME THAT WE'RE
CONSIDERING THIS MONUMENTAL
PROBLEM AND THE CHALLENGE FOR
US. IS. TO PATCH THIS TOGETHER
WITH SO MANY ONE TIME THINGS
THAT THE DEFICIT DOESN'T CHANGE
MUCH IN THE OUT YEAR, AND WE
JUST PATCHED IT TO A WORSE
PROBLEM WHERE WE'RE GOING TO
HAVE TO MAKE REAL CUTS BECAUSE
WE DIDN'T FIGURE OUT WAYS TO
LOWER THE OUT YEAR THIS YEAR,
AND IT'S A QUESTION OF WHETHER
IT'S PAIN. OR LESS PAIN, BUT
IT'S PAIN AND IT AND IT SEEMS TO
ME THAT DOING SOME OF THAT
LESSENS THE PAIN IN A WAY THAT
IT LOWERS THE OUT YEAR DEFICITS
AND ALLOWS US TO BE CLOSER TO IT
WHEN WE GET THERE, AND IT IS THE
PROBLEM OF THE RAINY DAY FUND,
AND I APPRECIATE THE FACT THAT
IT WILL. I DON'T KNOW IF THE
WORDS AUTOMATIC THAT THAT IT
WILL BE PRESCRIBED AT A CERTAIN
LEVEL IF WE GET TO CERTAIN
POINTS, BUT, UM. EVENING IT OUT
IT. IT'S KIND OF LIKE SOMEBODY
THAT WORKED FOR JERRY BROWN FOR
EIGHT YEARS. UM HE WANTED YOU TO
MAKE THE CUTS FIRST, BEFORE HE'D
EVER TALK ABOUT THE REVENUE. AND
OF COURSE, I WAS NOT IN THE
LEGISLATURE AT THE TIME, AND IF
I WAS IN THE LEGISLATURE, I
WOULD HAVE HATED THAT. BUT
THAT'S HOW HE GOT THE POLITICAL
CONSTITUENCY TO PASS TAXES AND
DO THE THINGS THAT HE HAD TO DO.
AND IT WAS. IT WAS NOT A BAD WAY
TO PROCEED FOR THE POLITICAL
PART OF IT AS WELL AS THE FISCAL
RESPONSIBILITY, PART OF IT, AND
IT'S AND I GET THE FACT WINK OR
NOT, THAT THIS BUDGET WAS JUST
TO GET US TO MAY AND MAYBE SOME
REAL THINGS WILL WILL HAVE TO BE
DECIDED THAT WEREN'T DECIDED IN
OR PROPOSED IN JAN 10, BUT I
WOULD JUST SAY THIS THERE'S
GOTTA BE SOMETHING THAT'S ON THE
TABLE AS AS WE TALK, IT'S GOT TO
BE ON THE TABLE AND YOU, YOU
KNOW IF IT'S REALLY ABOUT
CUTTING THE COLA, EVEN IN THE
FUTURE YEAR, AS OPPOSED TO
TAKING SOME OF THOSE HARD
DECISIONS, WE'RE GONNA WANT TO
HOLD THE COLA AS BEST WE CAN,
BECAUSE IN THE MIDST OF ALL THE
OTHER CUTS AND BAD THINGS WE'RE
GOING TO HAVE TO DO. AT LEAST
THERE'S THAT LITTLE, UH UH, BIT
OF STABILITY, ALTHOUGH I
RECOGNIZE WHAT WAS SAID IN THE
PREVIOUS ITEM. WITH LABOR
CONTRACTS, INFLATION THINGS THAT
COME EVERY BUDGET IS GONNA GO UP
4.5 TO 5% WITH MINIMAL AMOUNTS
OF ACTION. AND IF WE'RE DOING A
COLA THAT'S LESS THAN 1% IT'S
GONNA INFLICT THE PAIN AND THE
CUTS DOWN TO THE LOCAL LEVEL AS
AS WE'RE DOING THAT SO I GUESS
WE TALKED IN THE ABSTRACT ABOUT
THE DIFFERENT LEVELS OF PAIN.
AND NOW WE'RE JUST BEING VERY
SPECIFIC COMPELLENT. SO, UM.
NORMALLY THIS IS WHEN I WOULD
TURN TO THE OTHER COMMITTEE
MEMBERS AND SAID OK, I'VE
DOMINATED THE QUESTIONS. YOU
HAVE SOMETHING ELSE TO SAY. UH
UH. BUT UM, I THINK, WW. WE'VE
DONE A PRETTY GOOD JOB OF
VARYING THE ISSUES AND I SUSPECT
THERE WILL BE SOME PEOPLE MAKING
COMMENTS. WHEN WE GET TO PUBLIC
COMMENT AT THE END OF THIS THAT
WE WE'LL ADDRESS SOME OF THIS,
BUT IT GOES BACK TO MY OPENING
COMMENTS ABOUT EVERYTHING HAS TO
BE ON THE TABLE AND WE HAVE TO
THINK ABOUT HOW THIS ALL FITS
TOGETHER. TO DO THE MINIMUM
AMOUNT OF HARM BUT TRY TO
ACCOMPLISH THE FISCAL SITUATION
THAT WE NEED. I WOULD ASK TO
EITHER OF YOU HAVE ANY COMMENTS
BEFORE YOU WE MIGHT MOVE ON. YES
I CAN JUST MAKE ONE COMMENT.
THIS BUDGET LIKE SOME BUDGETS IN
THE PAST IS A BIT OF A TALE OF
TWO BUDGETS FOR THE STATE
BUDGET. OVERALL YOU ARE LOOKING
AT A PRETTY BIG IMBALANCE
BETWEEN REVENUES AND
EXPENDITURES, SORT OF LIKE A
STRUCTURAL DEFICIT OF ABOUT $30
BILLION. IF THERE IS A LITTLE
BIT OF A SILVER LINING, IT'S
THAT WITHIN PROPOSITION, 98. THE
STRUCTURAL PART OF THE DEFICIT
IS A LOT SMALLER. IT'S ONLY
ABOUT 2.2 BILLION, AND SO, UM,
THAT'S SORT OF THE MÐI. THE I
GUESS DIFFERENCE BETWEEN THE
PROPOSITION 98 GUARANTEE YOUR
ONGOING SPENDING LEVEL. UM A LOT
. MOST OF THE PROBLEM WITHIN
PROPOSITION 98 IS MORE OF A ONE
TIME PROBLEM, PARTICULARLY THE
DROP IN 2220 THREE. AND IF YOU
DO, UM, AS YOU MENTIONED, UM
RESCIND OR PULL BACK ON SOME OF
THESE ONE TIME GRANTS, YOU CAN
USE THOSE, UH, FUNDS AS ONE TIME
SAVINGS AND WE THINK PUT THEM
TOWARDS 2220 THREE. OBVIOUSLY A
PULLING BACK A ONE TIME GRANT IS
JUST A ONE TIME SOLUTION. BUT IN
22 AND 23, YOU'RE ONLY TRYING TO
SOLVE A ONE TIME PROBLEM. AND SO
WE THINK THAT THAT'S A
REASONABLE APPROACH. UH, FOR ALL
OF THE REASONS THAT YOU
MENTIONED, OK THANK YOU. AND I
APPRECIATE. UH ALL BEARING WITH
US, AND I THINK ONE OF THE
THINGS IS THERE'S JUST AS IT IS
OBVIOUS FROM THIS DISCUSSION.
THERE'S SO MANY MOVING PIECES
THAT IT. IT'S A QUESTION OF
WHICH ONES TO TRY TO IMPACT AS
WE GO ALONG HERE IN THIS
DISCUSSION IS JUST GONNA GO TILL
THE LAST MINUTE. THE BUDGET IS
SIGNED. SO IT AND IT IT IS HARD
BECAUSE I AM A STRONG ADVOCATE
FOR PUBLIC EDUCATION AND FOR
SCHOOLS AND WHEN I AM LOBBIED I
ALWAYS FEEL THAT PEOPLE ARE NOT
TOTALLY AWARE OF WHAT'S GOING ON
IN THE OTHER PART OF THE BUDGET,
AND THAT PARTICULARLY WITH THE 8
BILLION THEY'RE SO EXCITED THAT
IT'S GOING TO GO TO CUTS IN
MEDICAL CARE AND CHILD CARE AND
OTHER THINGS AND THAT THEY WILL
BE HELD HARMLESS. SO IT IS JUST
TOUGH, AND I REMIND EVERYBODY AS
I DO IN THE LOBBYING VISITS,
THAT YOU'RE REPRESENTING KIDS
AND YOU MIGHT PROTECT THEIR
EDUCATION, BUT THEN YOU'RE GONNA
GET THEM WITH HOUSING AND
HEALTH. CARE AND CHILD CARE AND
THE OTHER THINGS AND THAT IT IS
A BALANCE OF MAKING SURE THAT WE
STILL TRY TO DELIVER EVERYTHING
TO THEM AS AS THEY NEED IT, SO
THANK YOU. AND UH I'M A AND
THANK YOU FOR, UM, SURVIVING THE
QUESTIONING IN THE FULL BUDGET
HEARING BECAUSE I WAS DETERMINED
TO GET THE WHOLE $8 BILLION
SCHEME ON THE TABLE AND WE
FINALLY GOT THERE. SO UM, THANK
YOU FOR BEARING WITH THAT WHEN
THAT HAPPENED, OK, WE APPRECIATE
UH UM THIS PANEL. AND WE'RE
GOING TO MOVE TO OUR DISCUSSION
ON THE LOCAL CONTROL. FUNDING
FORMULA. TO GO THROUGH EVERY
PAGE HERE.
AND. WE HAVE, UM. MY AGENDA
SHOWS WE HAVE KATIE LIAM MARINO
FROM THE DEPARTMENT OF FINANCE
AND ORIA FROM THE DEPARTMENT OF
EDUCATION AND MICHAEL FARRIS
FROM THE LEGISLATIVE ANALYST'S
OFFICE. LET'S GO IN THAT ORDER.
LET'S START WITH FINANCE
DEPARTMENT OF EDUCATION AND THEN
GO TO THE L A Ó WELCOME TO THE
COMMITTEE. UH, KATIE LONGO
MARINO WITH THE DEPARTMENT OF
FINANCE. UM I'LL COVER THE LOCAL
CONTROL FUNDING FOR YOUR
MICROPHONE ON. I CAN'T TELL IT.
THERE IT GOES. THIS IS KATIE
LOGO, MARCIO WITH THE DEPARTMENT
OF FINANCE. UM I'LL BE COVERING
THE LOCAL CONTROL FUNDING
FORMULA. AND MY COMMENTS WILL BE
PRETTY BRIEF, UH, REGARDING THE
APPORTIONMENT ON DISTRICTS AND
COUNTIES. IN THE BUDGET YEAR WE
SAW A DECREASE WE SEE A DECREASE
OF ROUGHLY 1.4 BILLION, UH,
WHICH IS A RESULT OF THE 0.76%
COST OF LIVING ADJUSTMENT.
COMBINED WITH POPULATION GROWTH
ADJUSTMENTS. AND THIS FIGURE
COMPARES THE BUDGET YEAR TO THE
REVISED CURRENT YEAR. MOVING ON
TO THE COUNTY OFFICES OF
EDUCATION. IN THE BUDGET YEAR,
WE SEE A DECREASE OF 5 MILLION,
WHICH REFLECTS AGAIN. POPULATION
GROWTH CHANGES APPLICABLE TO THE
COUNTY OFFICE OF EDUCATION L èC
FF, AS WELL AS THE 0.76% COST OF
LIVING ADJUSTMENT. AND I
REALIZED THAT THIS, UH, HEARING
ISN'T FOCUSED ON TRANSITIONAL
KINDERGARTEN. BUT AL ALSO
BRIEFLY COVER OUR NUMBERS FOR
THAT, UM THE GOVERNOR'S BUDGET.
ADJUST TRANSITIONAL KINDERGARTEN
EXPANSION COSTS UP BY ROUGHLY
635 MILLION IN THE BUDGET YEAR.
REFLECTING REVISED PROGRAM
UPTAKE ESTIMATES, UH, TO SUPPORT
THE PROGRAM TO SERVE ALL
CHILDREN TURNING FIVE BETWEEN
SEPTEMBER 2ND AND JUNE 2ND. AND
AN INCREASE OF 100 AND 61
MILLION TO SUPPORT UH, THE
ADDITION OF A CERTIFICATED OR
CLASSIFIED STAFF PERSON IN
TRANSITIONAL CLASSROOMS, UH,
SERVING THESE STUDENTS THAT
CONCLUDES MY REMARKS. I'M HAPPY
TO TAKE QUESTIONS AT THE
APPROPRIATE TIME. THANK YOU VERY
MUCH. WELL, I'LL GO TO THE
DEPARTMENT OF EDUCATION. GOOD
MORNING, MR CHAIR IN, UM ON
BEHALF OF THE DEPARTMENT OF
EDUCATION AND STATE
SUPERINTENDENT OF PUBLIC
INSTRUCTION AS CHIEF DEPUTY,
NICELY SHARED IN HER OVERVIEW.
UH OUR SCHOOL STUDENTS, FAMILIES
AND EDUCATORS ARE CONTINUING TO
DEAL WITH EXTRAORDINARY
CHALLENGES. THEY'RE STILL
DEALING WITH THE LINGERING
EFFECTS OF THE PANDEMIC AND THE
NEED TO ACCELERATE LEARNING
WHILE SIMULTANEOUSLY TACKLING
THOSE LONG STANDING ISSUES THAT
ULTIMATELY PREDATING THE
COVID-19 PANDEMIC. WE'VE
GENERALLY HEARD CONCERNS AROUND
GROWING PENSION. AND STAFFING
REMAINS A HUGE CHALLENGE IN THE
FIELD AS THERE ARE CONCERNS
ABOUT BEING ABLE TO EFFECTIVELY
IMPLEMENT A WHOLE NUMBER OF
PROGRAMS WHILE TRYING TO ALSO
ATTRACT QUALIFIED STAFF. AND OF
COURSE, THERE ARE CONTINUED
CONCERNS AROUND DECLINING
ENROLLMENT. NEVER SAY THE
ATTENDANCE AND CONTINUED HIGH
CHRONIC ABSENTEEISM RATES OF
STUDENTS COMPARED TO PRE
PANDEMIC LEVELS THAT WE ARE
SEEING SOME NORMALIZING
HAPPENING AS WELL COMING OUT OF
THE PANDEMIC THERE. WE'RE
THANKFUL FOR THE WORK THAT'S
BEEN DONE SO FAR TO ADDRESS
THESE ISSUES OVER THE LAST
HANDFUL OF YEARS, SUCH AS
PROVIDING WITH THEIR PRE COVID
ATTENDANCE YIELDS LEVELS IN 2122
AND ALLOWING SCHOOL DISTRICTS TO
USE AN AVERAGE OF THE THREE
PRIOR YEARS OF 80 WHEN
DETERMINING THEIR L èC FF
FUNDING LEVELS TO ADDRESS THE
EXTREME FLUCTUATIONS IN
ATTENDANCE THAT WE'VE SEEN AS A
RESULT OF THE PANDEMIC AND
OVERALL DECLINING ENROLLMENT
THAT WE CONTINUE TO BE FACING.
THE ADMINISTRATION'S PROPOSAL
THIS YEAR TO FULLY FUND THE CALL
OF 0.76% CONTINUES THOSE EFFORTS
TO KEEP THE L èC FF FULLY
FUNDED EVEN IF THE COLA IS LOW,
AND WE SINCERELY HOPE THAT THE
CO THE COLA WILL CONTINUE TO
REMAIN FULLY FUNDED DURING
BUDGET NEGOTIATIONS. OUR L A AS
WELL AS OUR EDUCATORS FACE
SIGNIFICANT COST PRESSURES IN
THIS INFLATIONARY ENVIRONMENT,
AND ANY REDUCED COLA ONLY
EXACERBATES THAT PROBLEM. AS WE
WORK THROUGH THIS BUDGET YEAR.
IT'S IMPERATIVE THAT WE WORK
HARD TO PROTECT EDUCATION
FUNDING TO ENSURE THAT OUR
SCHOOLS CAN DO THE BEST THEY CAN
FOR OUR STUDENTS. I LOOK FORWARD
TO ANSWERING YOUR QUESTIONS AT
THE APPROPRIATE TIME. THANK YOU
VERY MUCH, AND THEN WE'LL MOVE
TO THE L A Ó WELCOME. MISTER
PRESIDENT WITH THE LEGISLATIVE
ANALYST'S OFFICE. AS MY
COLLEAGUE AND I MENTIONED IN THE
PREVIOUS ITEM, WE ARE
RECOMMENDING REJECTING THE
STATUTORY COLA. UM GIVEN THAT
THE BUDGET RELIES ON $2.2
BILLION.01 TIME FUNDS TO FUND
ONGOING COSTS, UH, REJECTING THE
COLA WOULD REDUCE THE SHORTFALL
BY 628 MILLION AND WOULD, UM,
AVOID COMMUN COMMUNITY TO AN
ONGOING UM, SPENDING LEVEL THAT
THE STATE MIGHT HAVE DIFFICULTY
MEETING IN FUTURE YEARS. UM AN
ADDITIONAL CONSIDERATION IS THAT
, UM, THE ZERO COLA FOR 2425
WOULD FOLLOW A 30% INCREASE IN
FUNDING PER STUDENT FROM 2019 20
TO 20 THREE 24 OR YES, AND, UM,
IN ADDITION TO, UH, ZEROING OUT
THE COAL OF THE STATE COULD
CONSIDER OTHER CHANGES TO L èC
FF ADD ONS TO A GENERATE
ADDITIONAL SAVINGS, SUCH AS THE
Tð Kò STAFFING RATIOS ADD ON OR
OTHER ADD ONS THAT, UM, ARE
FUNDED ON ANTIQUATED HISTORICAL
FACTORS RATHER THAN STUDENT
DEMOGRAPHICS. UM, SO THAT
CONCLUDES OUR COMMENTS HAPPY TO
ANSWER ANY QUESTIONS YOU MIGHT
HAVE. THANK YOU VERY MUCH, UM.
LET ME GO TO THE DEPARTMENT OF
FINANCE AND FOLLOW UP BECAUSE
THE LEGISLATIVE ANALYST HAS SAID
THAT IT'S THEIR BELIEF THAT THIS
AS THE L èC S¼ F LOCAL CONTROL
FUNDING FORMULA IS OVER. FUNDED
BY $1.8 BILLION. HOW WOULD YOU
RESPOND TO THEIR ASSERTION.
REFER TO MY COLLEAGUE. LENA
GRANT DEPARTMENT OF FINANCE. I
WOULD JUST NOTE TWO THINGS. UM
ONE THE 2324 P. ONE DATA JUST
CAME. IT WAS JUST CERTIFIED AND
IT CAME IN A LITTLE BIT HIGHER
THAN I THINK THE A Ó MAY HAVE
PROJECTED A LITTLE BIT CLOSER TO
FINANCES, ESTIMATES AND BECAUSE
OF THIS, I THINK THERE MIGHT NOT
BE ACTUALLY BE THAT HIGH OF
SAVINGS I WANT WITH DEFER TO THE
L Ó TO CONFIRM THIS, BUT, UM,
UH, THE OTHER THING TO NOTE IS
THAT BECAUSE UH, OF. THE WAY
WE'RE CURRENTLY FUNDING Tð Kò,
UM, ACCOUNTS FOR AS AS STATED IN
THE AGENDA. DOES IT COUNT FOR
THOSE STUDENTS IMMEDIATELY,
RATHER THAN FUNDING THEM BASED
IN THE WAY THE REST OF THAT Tð
Kò Kò, Tð Kò OR Kò THROUGH 12
POPULATION IS, WHICH IS I THINK
80% OF SCHOOL DISTRICTS ARE
FUNDED ON, UM THE DECLINING
ENROLLMENT LIKE THE AVERAGE OF
THE PAST THREE YEARS, SO WE
THINK WE ARE OPEN TO LOOKING
INTO OUR METHODOLOGY AND
POTENTIALLY REVISING IT TO
REFLECT A MORE ACCURATE PICTURE
OF ACTUAL TK STUDENTS I'M
OCCASIONALLY PRONE TO SNARKY
COMMENTS. AND SO WHEN IT COMES
TO THE L, I Ó SAYING THE
OVERALL BUDGET IS $15 BILLION IN
REVENUE DOWN THE DEFERRALS TO
JANUARY 10TH AND WE'RE STICKING
WITH IT. BUT WHEN IT COMES INTO
THE GOOD, WE'RE WILLING TO LOOK
AT THE UPDATED ONE AND TRY TO
INCORPORATE IT IN. UH, YOU
CLEARLY HAVE SOMETHING YOU WANT
TO SAY. YES EDGAR BROUGHT WITH
THE EARLIER. I JUST WANNA
REITERATE MR GRANT'S COMMENTS.
WE ARE WORKING ON LOOKING AT THE
UPDATED DATA. OUR ESTIMATE WAS,
UH, THAT WE DEVELOPED THAT'S IN
THE REPORT WAS PRIOR TO
RECEIVING THE IT'S CALLED THE P
ONE DATA THAT HAS SOME
PRELIMINARY INFORMATION ON THE
CURRENT YEAR. WE'RE STILL
LOOKING INTO IT TO KIND OF GET
YOU A REVISED ESTIMATE OF WHAT
OUR NUMBER WOULD BE. BUT IT DOES
LOOK LIKE ON OUR INITIAL REVIEW
OF THE DATA THAT THOSE NUMBERS
ARE A LITTLE BIT. ATTENDANCE IS
A LITTLE BIT HIGHER THAN WHAT WE
HAD EXPECTED. AND SO THAT THAT
NUMBER UH AND WE'RE WE'RE RIGHT
NOW CONTINUING TO UPDATE THOSE
ESTIMATE OF WHAT WHEN WE HAVE A
BETTER SENSE OF WHAT WE THINK
THAT NUMBER WOULD BE, UH, WILL
UPDATE YOU ON THAT. THANK YOU.
UH UH. I REALLY APPRECIATE THAT.
AND I THINK THAT, UM THE. THIS
IS NOT DISSIMILAR FROM THE
PREVIOUS ITEM, AND IT SORT OF
SAYING THAT THE CALL IS FULLY
FUNDED. UM, GIVES A HEART ATTACK
TO THE SCHOOLS BECAUSE WHATEVER
IT IS 0.76 IS SO BELOW WHAT THEY
THEY NEED JUST TO DO WITH COST
OF LIVING AND CONTRACTS AND
THINGS AND YET FULLY FUNDED,
RELATES TO THE COLA, NOT WHAT
REALLY IS THE IMPACT ON SCHOOL
DISTRICTS AND YET UM, DOING THIS
REALLY DEPENDS ON THE MONEY
AVAILABLE AND HERE, UH, AS MUCH
AS WE ALL FEEL THE NEED AND THE
SCREAMS FOR WHAT? UM IS NOT
HAPPENING APPROPRIATELY AT THE
SCHOOL DISTRICT. SO UM, THIS
JUST IS ANOTHER THING. WE
CLEARLY IT'S A MOVING TARGET IT
IT'S CLEARLY GONNA MOVE UNTIL
UNTIL WE GET TO MAY AND HAVE TO
FIGURE IT OUT. IS THERE ANYTHING
THAT ANY OF YOU WANNA MAKE? SURE
WE KNOW BEFORE WE JUST MOVE PAST
THIS ITEM THAT WE DIDN'T TALK
ABOUT IN THIS HEARING. I KNEW
THAT WAS IN MY INTEREST BECAUSE
NONE OF YOU WOULD WANT TO EXTEND
THE ITEM. SO UH UH, BUT I WOULD
TRY. OK WELL, THANK YOU. WE
APPRECIATE THE DISCUSSION AND WE
KNOW THAT THIS WILL. CONTINUED
TO BE AN ISSUE. WE ARE GOING TO
MOVE TO ITEM NUMBER FIVE. THE
EXCESS EDUCATIONAL REVENUE
AUGMENTATION FUND CALCULATION,
OTHERWISE KNOWN AS EXCESS, AND
WE WILL BE BACK TO MR SCOPE FROM
THE DEPARTMENT OF FINANCE AND MR
KAN FROM, UH FROM THE
LEGISLATIVE ANALYST'S OFFICE
AND, UM, WELCOME. TO THE
COMMITTEE AND HAVE OPENING
COMMENTS AND WE'LL GO IN THAT
ORDER OF FINANCE AND LEGISLATIVE
MANNER. HELLO AGAIN, MR. CHAIR,
ALEX. SO DEPARTMENT OF FINANCE.
SO BEGINNING IN 1992, THE
EDUCATIONAL REVENUE AUGMENTATION
FUND ERA SHIFTED PROPERTY TAX
REVENUES FROM CITIES, COUNTIES
AND SPECIAL DISTRICTS TO CAT TO
14 SCHOOLS. IS DISTRIBUTED
WITHIN EACH COUNTY ON A PER
AVERAGE DAILY ATTENDANCE BASIS
TO ALL NON BASIC AGE SCHOOL
DISTRICTS WITH THE INTENT OF
DIRECTING PROPORTIONALLY MORE
TOWARDS DISTRICTS WITH LESS
PROPERTY TAX REVENUES, UM ON A
PER A BASIS. UH, COMMUNITY
COLLEGES AND UM SPECIAL
EDUCATION. LOCAL PLAN AREAS ALSO
RECEIVE AN ERA ALLOCATION. UM
THEN ERE THAT CANNOT BE ABSORBED
BY BASIC AID. UH, SCHOOL
DISTRICTS, WHICH ARE STATUTORILY
INELIGIBLE TO RECEIVE ERA. UH,
THIS IS TERMED EXCESS. UM AND
THEN RETURN TO LOCAL AGENCIES
FROM WHICH IT WAS GENERATED. UM
SO CHARTER SCHOOLS THEY WERE
ESTABLISHED IN THE STATE, UH, IN
1992, ALMOST CONCURRENTLY WITH
THE E REF STATUTES. HOWEVER
CHARTER SCHOOLS ARE NOT
EXPLICITLY IDENTIFIED WITHIN
EXISTING ERA DISTRIBUTION
STATUTES, SO TO EXPLICITLY
ADDRESS CHARTER SCHOOLS AND
THEIR INTERACTION WITH EXISTING
ERA DISTRIBUTION DISTRIBUTION
STATUTES, THE GOVERNOR'S BUDGET
PROPOSES STATUTORY LANGUAGE TO
EXPLICITLY INCLUDE CHARTER
SCHOOLS, UM, BEGINNING IN 2526
AS ELIGIBLE TO RECEIVE, UM BUT,
UM ADDITIONAL DETAILS FOR THIS
PROPOSAL. UH ARE STILL
FORTHCOMING IN TRAILER BILL
LANGUAGE THAT CONCLUDES MY
REMARKS HAPPY TO TAKE ANY
QUESTIONS. THANK YOU VERY MUCH,
UH, LEGISLATIVE ANALYST THANK
YOU, KEN AGAIN WITH THE
JOURNALISTS OFFICE. I THINK THE
KEY BACKGROUND FOR THIS PROPOSAL
IS THAT THE ORIGINAL PURPOSE OF
THESE EDUCATIONAL REVENUE
AUGMENTATION FUNDS AS TO
INCREASE THE AMOUNT OF PROPERTY
TAX REVENUE GOING TOWARDS
SCHOOLS AND COMMUNITY COLLEGES.
UH, AS YOU HEARD IN A FEW
COUNTIES, THOSE WITH VERY HIGH
LEVELS OF PROPERTY TAX REVENUE
PER CAPITA, A PORTION OF THAT
ERA REVENUE IS ALLOCATED INSTEAD
TO THE CITY COUNTIES AND SPECIAL
DISTRICTS IN THE COUNTY AND FOR
HISTORICAL REASONS THAT
ALLOCATION TO THOSE LOCAL IS
KNOWN AS EXCESS ER. AH, ONE KEY
VARIABLE IN THIS CALCULATION IS
THE TOTAL AMOUNT OF FUNDING THE
STUDENTS IN EACH COUNTY GENERATE
THROUGH THE LOCAL CONTROL
FUNDING FORMULA. GENERALLY THE
MORE STUDENTS THERE ARE IN THE
CALCULATION, THE GREATER THE
PROPORTION OF REVENUE IS GOING
TO ALL Kò 14 EDUCATIONS IN THE
COUNTY AND THE SMALLER THE YEAR
GOING TO LOCAL GOVERNMENTS IN
THE FORM OF EXCESS. UP UNTIL A
FEW YEARS AGO. MOST COUNTIES
ADMINISTERED THESE CALCULATIONS
IN WAYS THAT FULLY ACCOUNTED FOR
STUDENTS IN CHARTER SCHOOLS. UH
SUBSEQUENTLY, THEY ADOPTED A
DIFFERENT METHODOLOGY THAT
ACCOUNTS FOR CHARTER SCHOOL
STUDENTS TO A LESSER EXTENT, AND
THAT NEW APPROACH RESULTED IN
LESS PROPERTY TAX REVENUE
OVERALL GOING TO SCHOOL
DISTRICTS, CHARTER SCHOOLS AND
COMMUNITY COLLEGE DISTRICTS AND
MORE PROPERTY TAX REVENUE GOING
TOWARDS THE LOCAL GOVERNMENTS IN
THOSE IN THOSE COUNTIES. SO THE
TRAILER BILL LANGUAGE ISN'T
AVAILABLE, BUT WE UNDERSTAND THE
INTENT IS TO SPECIFICALLY
REQUIRE COUNTIES TO FULLY
ACCOUNT FOR CHARTER SCHOOL
STUDENTS. WITHIN THESE
CALCULATIONS, WE WOULD RECOMMEND
APPROVING THAT PROPOSAL. WE
THINK THAT APPROACH REFLECTS THE
ORIGINAL INTENT OF THE STATUTE.
THE LAW AT ISSUE AS YOU HEARD
SPECIFICALLY REFERS TO SCHOOL
DISTRICTS, BUT AT THE TIME THE
LAW WAS WRITTEN IN THE 19
NINETIES, IT WOULD HAVE BEEN
UNDERSTOOD TO BE INCLUSIVE OF
CHARTER SCHOOLS AUTHORIZED BY
THOSE SCHOOL DISTRICTS. UH, THE
EDUCATION CODE ALSO HAS MANY
LONG STANDING LAWS. DEEMING
CHARTER SCHOOLS TO BE SCHOOL
DISTRICTS FOR THE PURPOSES OF
ALLOCATING FUNDING. I THINK THE
GOVERNOR'S PROPOSAL ALSO COULD
ELIMINATE SOME ODD FISCAL
OUTCOMES. UH UNDER THE CURRENT
METHODOLOGY WHEN A STUDENT
LEAVES A SCHOOL DISTRICT TO
ATTEND A CHARTER SCHOOL, THE
OVERALL AMOUNT OF PROPERTY TAX
REVENUE ALLOCATED FOR Kò 14
EDUCATION TENDS TO DECREASE. WE
DON'T THINK THE LEGISLATURE EVER
INTENDED FOR THE CHARTER SCHOOL
STATUTES AND THE ERA STATUTES TO
BE READ IN A WAY THAT REDUCES Kò
14 PROPERTY TAX REVENUE WHEN A
STUDENT MOVES FROM A SCHOOL
DISTRICT TO A CHARTER SCHOOL,
UH, THE GOVERNOR'S PROPOSAL, I
THINK COULD ADDRESS THAT ISSUE
BY REQUIRING TREATMENT OF
DISTRICT AND CHARTER SCHOOL
STUDENTS. WITHIN THAT
CALCULATION, UM WE'LL FOLLOW UP
WITH MORE INFORMATION. UH, AS
THE TRILLY BOWL BECOMES
AVAILABLE. THANK YOU. THIS IS.
OBVIOUSLY GENERATED A LOT OF
COMMENTS AND WE HAVE LETTERS
FROM EVERY LOCAL GOVERNMENT
JURISDICTION THAT IS AFFECTED BY
THIS, BUT LET ME SEE IF I CAN
SYNTHESIZE IT FIRST. LET ME ASK
A RANDOM QUESTION. WAS THERE
SOME DECISION MADE THAT WAS LIKE
IN THE MIDDLE OF THE LAST DECADE
. ON THE APPROPRIATION OF THIS
IT, IT MAKES IT SOUND LIKE IT
GOES BACK TO THE 19 NINETIES.
BUT I HAVE A FEELING THAT THERE
WAS SOME DECISION MADE LIKE
ABOUT 2014 OR 2015 TO ALLOW THE
COUNTIES TO PUT IT IN, OR
WHATEVER THE LOCAL JURISDICTION
IS TO PUT IT IN CERTAIN PLACES.
DOES THAT RING ANY BELLS? I
THINK WHAT HAPPENED FOR MANY
YEARS. THIS WAS AN ISSUE THAT
ONLY AFFECTED UM WE THREE
RELATIVELY SMALL COUNTIES, UH,
THE BIG CHANGE THAT HAPPENED IN
THE EARLY 2010 EARLY 20 TENS,
UH, WAS THAT TWO VERY LARGE
COUNTIES WITH MANY CHARTER
SCHOOLS STARTED TO BE AFFECTED
BY THIS ISSUE, AND SO THIS, UH,
ISSUE GREW FROM SOMETHING THAT
AFFECTED UH, A FEW MILLION,
MAYBE TENS OF MILLIONS OF
DOLLARS TO SOMETHING THAT
AFFECTS NOW, UM, POTENTIALLY
MORE THAN $100 MILLION. I THINK
THAT THE CHANGE IN THE
METHODOLOGY HAPPENED. OUR
UNDERSTANDING IS AROUND. 2018 19
WAS WHEN, UM AND IT IT IT
APPEARS TO ONLY AFFECT F
COUNTIES. IS THAT RIGHT? AND
THEY ARE ALL HIGHER WEALTH
COUNTIES. YES THAT'S KIND OF
THAT'S THE COMMON DENOMINATOR IN
THIS IS ONE OF THOSE STATUTE
APPLIES TO EVERY COUNTY, BUT IT
ONLY MATTERS IN COUNTIES WITH
VERY HIGH LEVELS OF PROPERTY TAX
REVENUE. UM WHERE THERE MIGHT BE
THE POSSIBILITY OF HAVING
EXCESSIVE AND ONE OF THE THINGS
I WANTED TO UNDERSTAND WAS IS
THE FISCAL IMPACT OF THIS AND
THE SHIFT, BUT WE WON'T KNOW
THAT UNTIL THERE'S TRAILER BUILT
LANGUAGE. IS THAT RIGHT? CAN
ANYBODY SAY WITH ANY CERTAINTY?
WHAT THE FINANCIAL. IMPACT IS
SURE SO BA BASED ON CURRENT
AVAILABLE DATA, UM WE ESTIMATE
THE IMPACT TO BE AROUND 100 AND
30 MILLION. UM I THINK THAT WE
WOULD NOTE, THOUGH, THAT
IMPACTED COUNTY AUDITOR
CONTROLLERS, UM, WOULD BE IN THE
BEST POSITION TO, UM, DISCUSS
THE EFFECTS OF THEIR COUNTIES.
BUT THE POLITICAL THING HERE OR
PUBLIC POLICY THING. USUALLY NOT
VERY DIFFERENT. I IS THAT THE AT
LEAST THE FIVE COUNTIES IN
ASSOCIATED CITIES HAVE MADE
BUDGET ALLOCATIONS BASED ON THE
EXISTING SYSTEM. AND WHILE THERE
IS A STATEMENT THAT IT MAKES
MUCH MORE SENSE TO INCLUDE
CHARTER SCHOOLS IN THE COUNT
COUNT GOES UP, THEN LESSENS THE
EXCESS FOR THE LOCAL
GOVERNMENTS, AND IT'S A DE FACTO
CUT TO THEM. EVEN THOUGH IT IS
BEING DONE ON THE AFFIRMATIVE
PUBLIC POLICY BASIS THAT SOMEHOW
THIS IS BETTER. UH, UH, TO
INCLUDE CHARTER SCHOOLS NEVER
TEND TO LEAVE THEM OUT. I IF I
THIS HAS BEEN AN ISSUE FOR TWO
OR THREE YEARS IN MY RADAR, AND
I HAVE SOME RECOLLECTION, AND A
LOT OF THE SANTA CLARA PART GOES
TO COURTS. SO THIS IS A CUT TO
THE COURT SYSTEMS AND IN SANTA
CLARA COUNTY OF AN UNSPECIFIED
AMOUNT BECAUSE WE CAN'T TIE THAT
DOWN. TO A CHANGE IN POLICY ON
CHARTER SCHOOLS IS AM I STATING
THAT CORRECTLY. WELL, I THINK
MAYBE TWO COMMENTS. ONE WOULD BE
THAT THE PART OF THE REASON THAT
THE NUMBER FLUCTUATES SO MUCH IS
THAT THERE ARE EVERY YEAR THERE
ARE DIFFERENT, UH, NUMBERS OF
CHARTER SCHOOLS AND THE PROPERTY
TAX FACTORS CHANGE. THE OTHER
CHALLENGE IS THAT NOT ALL OF THE
KONY REPORT DATA TO THE STATE
THAT THE DEPARTMENT OF EDUCATION
ASKS FOR EACH YEAR AND SO IT'S
HARD TO HAVE A BASELINE WHEN WE
WHEN WE DON'T HAVE THE FULL
PICTURE OF WHAT WHEN WE DON'T
HAVE ALL OF THAT DATA THAT'S
REQUESTED. UM, BUT I THINK WE
WOULD CONCUR GENERALLY WITH THE
DEPARTMENT OF FINANCES, UH,
ESTIMATE THAT WAS SIMILAR TO ONE
WE PUT TOGETHER. UM, I THINK
THAT FOUR YEARS AGO, BASED ON
2021 DATA. UM I THINK THE OTHER
CHAIN OTHER MAYBE COMMENT. WE
WOULD WE WOULD ADD, IS THAT I
AGAIN UNDERSTANDING IS THAT.
HISTORICALLY FOR MOST OF THE
HISTORY, UH MOST COUNTIES HAVE
BEEN INCLUDING CHARTER SCHOOLS.
AND SO THE CHANGE YOU KNOW IT.
MAY BE PERCEIVED AS A REDUCTION,
BUT THAT'S RELATIVE TO THE MORE
RECENT METHODOLOGY THAT THEY
HAVE, NOT THE WAY WE UNDERSTAND
THE STATUTE HAS WORKED FOR MOST
OF THE MOST OF THIS TIME. YOU
SEE, I THINK FOR THE LAST TWO
YEARS BECAUSE THERE WAS SO MUCH
CHATTER ABOUT THIS THAT I THINK
IT WAS LAST YEAR. I FORGET WHICH
YEAR I ACTUALLY AGENDA IS IT IN
THE BUDGET SUBCOMITTEE AND WE
HAD A DISCUSSION AND, UH, THE
REAL THING WAS IS THE COUNTY
OFFICES OF EDUCATION IN SOME OF
THESE COUNTIES FELT LIKE THAT
SHOULD COME THEIR WAY. AND THAT
THIS WAS SOMETHING THAT WAS
BEING DIVERTED AWAY FROM THEM.
EVEN THOUGH THERE WAS
LEGISLATIVE ACTION THAT WAS WAS
PRETTY CLEAR IN THE PAST, AND
THERE WAS ALSO DISPROPORTIONATE
AND I'M SORRY. THIS IS IN THE
HAZE. I'M JUST REMEMBERING
CHARTS AND LETTERS FROM A YEAR
OR TWO AGO, BUT IT SEEMED TO ME
THAT SANTA CLARA COUNTY HAD A
DISPROPORTIONATE AMOUNT OF THE
FIVE COUNTIES THAT THEY HAD
SOMETHING LIKE HALF OF, UH, THE
AMOUNT THAT WAS IN THIS CATEGORY
AMONG THE COUNTIES. AND SO IF
THERE'S A SHIFT BECAUSE THERE'S
A CONSIDERABLE NUMBER OF CHARTER
STUDENTS IN SANTA CLARA COUNTY,
IT'S GONNA HAVE A REAL
DISPROPORTIONATE, UH, HIT ON THE
COURT SYSTEM OR OTHER THINGS
THAT THAT ARE FUNDED OUT OF
THAT, UH, EXCESSIVE. YEAH. SO
JUST TO CLARIFY THAT ACTUALLY IS
A SEPARATE ISSUE. BOTH ISSUES
AFFECT SANTA CLARA. UM BUT THE
EXCESS ER ISSUE THAT'S REALLY
WINNING. THE LOTTERY IS SEPARATE
FROM, UH, THIS ISSUE. UH THE
TRIAL COURT ISSUE IS THAT AGAIN
SEPARATE FROM ALL OF THE
CALCULATIONS, THE COUNTY OFFICE
OF EDUCATION IN THAT COUNTY AND
SOME OTHER COUNTIES RECEIVED
PROPERTY TAX REVENUE ABOVE THEIR
STATUTORY TARGET UNDER THE LOCAL
CONTROL FUNDING FORMULA, AND THE
STATE DIRECTS THAT TOWARD
COVERING SOME OF THE TRIAL COURT
COSTS. IN THE COUNTY FROM A
TRIAL COURT PERSPECTIVE, THAT
SHIFT IS NEUTRAL BECAUSE IT'S
JUST REPLACING GENERAL FUND
NEATE WOULD OTHERWISE PROVIDE,
BUT WHATEVER YOU DECIDE ON THE
EXCESS ERA PROPOSAL DOESN'T
AFFECT THAT SHIFT. WELL IT'S
REALLY HARD. I READ THE STAFF
REPORT AND I WAS HOLDING IT UP
TO THE LIGHT TRYING TO
UNDERSTAND. HOW DOES IT AFFECT
THE TWO ISSUES HERE, AND IT WAS
IN ITS OWN LINE, SO THAT'S VERY
HELPFUL. THANK YOU. UM AND I
KNOW FROM SEEING WHO'S SITTING
OUT THERE. WE'RE GOING TO HEAR
ABOUT THIS IN PUBLIC COMMENT.
SO, UM IS THERE ANYTHING ELSE
THAT YOU WANT TO DO? THE THING
ABOUT IT IS, IS THAT I THINK WE
WOULD LIKE TO KNOW. WHAT THE
FISCAL IMPACT REALLY IS BEFORE
WE GET TO DECISIONS IN MAY AND.
I WOULD THINK AT THIS POINT THAT
IT MIGHT BE IN THE INTEREST OF
THE COUNTIES TO REPORT AND IF
THERE'S A, UH, A HESITANCY TO
REPORT, UM, WE SHOULD DO SOME
WORK TO TRY TO GET THEM TO
REPORT BEFORE WE'RE TRYING TO
MEASURE THE FISCAL IMPACT AND
DECIDE WHAT WE'RE DOING HERE.
YES I CAN ADD JUST ONE CONTEXT.
ONE ADDITIONAL COMMENT, SO THERE
ISN'T ANY FUNDING. THERE ISN'T
ANY. UH MONEY FROM THIS PROPOSAL
SCORED IN THE GOVERNOR'S BUDGET.
TO THE EXTENT YOU ADOPT THE
PROPOSAL, AND THERE'S MORE
PROPERTY TAX REVENUE GOING
TOWARDS 14 EDUCATION THAT WOULD
INCREASE THE TOTAL POT OF
FUNDING FOR SCHOOLS UNDER
PROPOSITION 98 IN 2425, IT
WOULDN'T RESULT IN STATE GENERAL
FUND SAVINGS, AT LEAST NOT IN
THAT YEAR. BUT YOU'RE DOING THAT
ON THE STATE SIDE. YOU'RE NOT
DOING THAT ON THE IMPACT OF
LOCAL GOVERNMENT SIDE. FOR THOSE
THAT ARE NOT SCHOOLS THAT ARE
IMPACTED BY WHAT THIS CHANGE
WOULD MEAN. RIGHT SO THIS IS
JUST ABOUT THINKING THROUGH.
YOU'VE GOT A 70 THREE BILLION
DOLLAR BUDGET SHORTFALL. COULD
THIS PROPOSAL HELP ADDRESS THAT
AND WHAT WE'RE SAYING IS IT
WOULD INCREASE FUNDING FOR
SCHOOLS, BUT IT'S NOT. THAT
SAVING THE STATE. 130 MILLION IN
GENERAL FUND IF YOU ADOPT WELL
WHEN II I WAS A BUDGET ANALYST
FOR COUNTY GOVERNMENT FOR A
NUMBER OF YEARS, AND WHEN I WENT
TO THIS ONE COUNTY SUPERVISOR
WHEN I WAS FIRST RUNNING FOR THE
ASSEMBLY 20 YEARS AGO, SHE SAID.
OH, I'M GONNA SUPPORT YOU. BUT
YOU'RE GONNA BE LIKE THE REST OF
THEM. YOU'RE GONNA GET UP THERE.
AND AFTER 10 MINUTES, YOU'RE
GONNA FORGET WHERE YOUR ENTIRE
CAREER WAS. AND SO I'M
CHANNELING THAT IN THIS BECAUSE
OF THE IMPACT THAT HAPPENS TO
LOCAL GOVERNMENT AND THAT THAT
HAS TO BE ACKNOWLEDGED IN THIS
AND JUST HOW IT ALL FITS. THIS
IS NOT BEING DONE IN A VACUUM.
SO HAVING SAID THAT YOU ALREADY
ADDED A COMMENT WITHOUT ME
ASKING FOR IT. BUT DO EITHER OF
YOU HAVE ANY CLOSING COMMENTS
BEFORE WE MOVE ON? GREAT THANK
YOU. WE REALLY APPRECIATE THIS,
AND WE'RE JUST GONNA WANNA HAVE
OTHER FACTS. AS WE MOVE ON. THAT
COMPLETES OUR FIVE ISSUES AND
WE'RE GOING TO MOVE TO PUBLIC
COMMENT, BUT LET ME TAKE AN
INFORMAL POLL OF THE PEOPLE THAT
ARE HERE, UH, WHO WANTS TO SPEAK
IN PUBLIC COMMENT? THAT LOOKS TO
ME LIKE ABOUT 15, EVEN THOUGH I
ALWAYS KNOW PEOPLE GET INCITED
BY THE PUBLIC COMMENTS THAT ARE
MADE, SO LET ME JUST SET A TWO
MINUTE UH UM LIMIT AND, UH WE
STEPPED TO THE MICROPHONE AND
STATE YOUR NAME AND ORGANIZATION
AND, UH, AND UM. WHAT YOU WANT
TO SAY FOR TWO MINUTES. THANK
YOU, MR CHAIRMAN. YOU ARE NOT IN
THE HAZE, AND I APPRECIATE YOUR
EXPERIENCE. UH IN COUNTY
GOVERNMENT THIS POLIO ON BEHALF
OF THE CITY AND COUNTY OF SAN
FRANCISCO. ON THE EF ISSUE.
FIRST OF ALL, UM, IN TERMS OF A
LOT OF THINGS THAT WERE JUST
STATED AT THAT TABLE. AND UH,
GUESSES ABOUT INTENT AND
WHATNOT. THERE WAS NÓ CHANGE IN
STATUTE. AND THAT IS SO TRUE
THAT AS YOUR AS YOUR ANALYSIS
NOTES, THANK YOU. CONSULTANT ON
FEBRUARY 16TH 2021, THEN STATE
CONTROLLER, BETTY ISSUED
GUIDANCE TO COUNTIES TO CONTINUE
TO EXCLUDE CHARTER SCHOOLS FROM
CALCULATIONS. CALIFORNIA SCHOOL
BOARDS, CHALLENGES GUIDANCE IN
THE COURTS, AND IN JUNE 22 THE
COURT FOUND IN FAVOR OF THE
STATE CONTROLLER'S
INTERPRETATION OF THE LOCAL
CALCULATIONS. THEN CONTROLLER
SAID THE COUNTIES WERE DOING
EXACTLY WHAT THEY SHOULD BE
DOING. AND THEN A COURT
VALIDATED THAT WHEN CHALLENGED.
THE COUNTIES HAVE ONLY THESE
FIVE COUNTIES HAVE ONLY ABIDED
BY THE LAW. THIS PROPOSAL SHOULD
BE REJECTED. ON THE COMMENTS YOU
MADE MR CHAIRMAN, THIS I
ESPECIALLY WANT TO THANK YOU FOR
THAT. A CUT OVER HERE HURTS
OTHER PEOPLE OVER HERE. THIS IS
IT COULDN'T COME AT A AT A WORSE
TIME FOR THE CITY AND COUNTY OF
SAN FRANCISCO. THIS WOULD ADD
CLOSE TO $100 MILLION. TO THEIR
CURRENT DEFICIT. PLEASE REJECT
THIS. IT DOESN'T HELP THE
STATE'S GENERAL FUND. THE
SCHOOLS ARE GOING TO GET THEIR
MONEY NÓ MATTER WHAT AND THANK
YOU. THANK YOU VERY MUCH.
APPRECIATE YOUR COMMENTS. GOOD
MORNING, MR CHAIR MEMBERS, KAREN
LANG ON BEHALF OF THE MARIN
COUNTY BOARD OF SUPERVISORS AND
THE NAPA COUNTY BOARD OF
SUPERVISORS, SIMILARLY SITUATED
TO SAN FRANCISCO, ALTHOUGH THE
NUMBERS ARE SMALLER, THE IMPACT
TO THEIR MUCH SMALLER GENERAL
FUND IS SIGNIFICANT. AND SO WE
WOULD ASK FOR YOU TO REJECT THE
PROPOSAL. I WOULD ALSO OBSERVE
TO YOU THAT CHARTER SCHOOLS HAVE
STUDENTS ATTENDING FROM VARIOUS
COUNTIES, AND THE ONE IN SAN
FRANCISCO IS ACTUALLY ALMOST
ENTIRELY ONLINE, SO IT WOULD BE
SAN FRANCISCO PROPERTY TAX
PAYERS. UH, FUNDING THE
EDUCATION OF STUDENTS SITTING IN
SOMEONE'S LIVING ROOM IN AN
ENTIRELY DIFFERENT COUNTY, SO WE
WOULD ASK YOU TO TAKE THAT INTO
CONSIDERATION AS WELL. UNDER THE
LIGHT OF PROPOSITION ONE, A.
THANK YOU SO MUCH. THANK YOU
VERY MUCH WELCOME. THANK YOU, MR
CHAIR. MY NAME IS AALIA KING
WITH CATALYST. CALIFORNIA UH,
WHICH IS ALSO A MEMBER OF THE
CALIFORNIA PARTNERSHIP FOR THE
FUTURE OF LEARNING. THE
PARTNERSHIP IS A STATEWIDE
ALLIANCE OF COMMUNITY ORGANIZING
ADVOCACY GROUPS AT CENTER, BLACK
, INDIGENOUS AND COMMUNITIES OF
COLOR TO ADVANCE THE SHARED
VISION FOR SCHOOLS. UH,
YESTERDAY WE SUBMITTED A LETTER
TO YOUR COMMITTEE URGING YOU TO
PROTECT THE FUNDING FOR
COMMUNITY SCHOOLS PROGRAM THAT
STUDENTS AND FAMILIES RELY ON.
WE APPRECIATE THE HISTORIC
INVESTMENTS MADE OVER THE LAST
FEW YEARS, UH, ACROSS THE BIRTHS
OF 12TH GRADE, UH, CALIFORNIA
PUBLIC EDUCATION SYSTEM,
INCLUDING THE HISTORIC $4.1
BILLION IN COMMUNITY SCHOOLS
PROGRAMS. THE EVIDENCE IS CLEAR.
COMMUNITY SCHOOLS CHANGE THE
OUTCOMES OF STUDENTS WHO HAVE
HISTORICALLY BEEN DENIED EQUAL
OPPORTUNITIES AND ARE ESSENTIAL
TO TRANSFORMING THE PUBLIC
EDUCATION. IN CALIFORNIA IN
PARTICULAR FOR, UH, THE THOSE
REPRESENTED BY OUR COALITION, SO
WE LOOK FORWARD TO CONTINUE TO
PARTNERING WITH YOU TO CHAMPION
AND EFFECTIVELY IMPLEMENT THIS
COMMUNITY SCHOOLS PROGRAMS
ACROSS THE STATE OF CALIFORNIA.
THANK YOU. THANK YOU VERY MUCH
FOR YOUR COMMENTS. WELCOME TO
THE COMMITTEE. HELLO CHAIR AND
MEMBERS. MY NAME IS INES ROSALES
ON BEHALF OF PUBLIC ADVOCATES
AND ALSO A MEMBER OF THE, UM,
CALIFORNIA PARTNERSHIP FOR THE
FUTURE OF LEARNING. UM JUST WANT
TO EMPHASIZE WE SUBMITTED A
COMMENT LETTER TO YOUR COMMITTEE
THIS WEEK. UM ALONG WITH OUR 11
CORE ORGANIZATIONS, URGING YOU
TO PRESERVE THE FULL 2.6 BILLION
COMMITTED AND PROMISED TO
STUDENTS AND FAMILIES THROUGH
THE CALIFORNIA COMMUNITY
PARTNERSHIP PROGRAM. UH, THE
COMMUNITY SCHOOLS APPROACH IS A
CORE PROGRAM. REALLY CRITICAL TO
STRAIGHT LIKE PUBLIC EDUCATION
IN OUR STATE. UM STUDENTS AND
FAMILIES ARE COUNTING ON THESE
FUNDS TO REACH THEIR SCHOOL
COMMUNITIES TO REALLY CLOSE LONG
AND PERSISTENT EQUITY GAPS FOR
STUDENTS. UM WE ARE ALSO HERE
ASKING YOU TO PROTECT
INVESTMENTS TO IMPROVE TEACHER
PREPARATION AND DIVERSITY AND
SPECIFICALLY BY MAINTAINING
FUNDING FOR THE GOLDEN STATE
TEACHER, TEACHER ENCOUNTER
RESIDENCY AND NATIONAL BOARD
CERTIFICATION GRANT PROGRAMS. SO
THANK YOU SO MUCH. THANK YOU
VERY MUCH. WELCOME MR CHAIR AND
MEMBERS AND STAFF. UH ANDREW
SHANE FROM POVERTY. CALIFORNIA
UM, ASSOCIATE MYSELF WITH THE
COMMENTS ABOUT COMMUNITY SCHOOLS
, BUT HERE TO FOCUS ON, UH, THE
UNIVERSAL SCHOOL MEALS PROGRAM,
UM, JUST REMINDING, UM, THE
CHAIR AND EVERYONE THAT ALTHOUGH
YOU CLEARLY HAVE A GREAT MEMORY
THAT THERE ARE MORE THAN 200
ORGANIZATIONS, INCLUDING MONEY
FROM YOUR DISTRICT, WHO ARE IN
STRONG SUPPORT OF UNIVERSAL
SCHOOL MEALS SINCE CALIFORNIA IS
FIRST IN THE NATION PASSAGE,
NINE STATES HAVE ADOPTED IT. 25
HAVE INTRODUCED LEGISLATION, AND
IT WAS EVEN PROPOSED AS PART OF
THE PRESIDENT'S WHITE HOUSE
CONFERENCE TO END HUNGER IN OK,
SO WE'VE TRULY INSPIRED A
NATIONAL MOVEMENT. WE DO HAVE
SEVERAL CONCERNS WITH THE LE Ó
S¼ ANALYSIS. UH, AND THEIR
PROPOSAL, UH, INCLUDING HOW èC
Dð IS IMPROVING DRUG
CERTIFICATION, AND IF WE WALK
BACK NOW, WE WILL ACTUALLY, UH,
FORFEIT THE ABILITY TO MAXIMIZE
FEDERAL DOLLARS. THERE WILL BE A
SUBSEQUENT LETTER GOING IN WITH
THOSE CONCERNS, SO WE, OF COURSE
URGE ADOPTION OF THE GOVERNOR'S
PROPOSAL. UH AND FINALLY IN
CLOSING JUST AS A AS A PARENT
WITH CHILDREN IN WEST CONTRA
CASA. WE KNOW THAT THERE ARE
FAMILIES WHO ARE STILL AFRAID TO
COME FORWARD THE DAMAGE FROM THE
PREVIOUS ADMINISTRATION, FEDERAL
ADMINISTRATION CANNOT BE OVERS.
THIS IS THE ONLY WAY TO MAKE
SURE THAT ALL HUNGRY STUDENTS
EAT. WE HAVE SEEN THE END OF
STIGMA AT THE LUNCH LINE. PLEASE
ADOPT THE GOVERNOR'S PROPOSAL.
THANK YOU. THANK YOU VERY MUCH.
UH, THANK YOU. CHAIR LADAN.
COMMITTEE MEMBERS AND STAFF
BECKY SILVA WITH THE CALIFORNIA
ASSOCIATION OF FOOD BANKS, UM,
WITH ONE IN THREE HOUSEHOLDS
WITH CHILDREN ONE IN THREE
HOUSEHOLDS WITH CHILDREN FOOD
INSECURE TODAY WE WANT TO
EXPRESS HOW GRATEFUL WE ARE FOR
CALIFORNIA'S TRAILBLAZING
NATIONAL LEADERSHIP IN SCHOOL
MEALS FOR ALL, UH, A POLICY THAT
FOOD BANKS ARE PROUD TO SUPPORT,
ALONG WITH MANY OTHER
ORGANIZATIONS ACROSS CALIFORNIA,
UM, IN A TRUE SUCCESS STORY THIS
HAS ALLOWED OVER 6 MILLION
CHILDREN, REGARDLESS OF. TO SIT
TOGETHER TO EAT NOURISHING MEALS
TO FUEL THEIR BODIES AND MINDS.
UM AND I WANTED TO HIGHLIGHT
SPECIFICALLY THAT ONE OF THE
REASONS WHY SCHOOL MEALS FOR ALL
IS SO IMPORTANT, AS ANDREW WAS
SAYING, IS THAT THE FEDERAL
INCOME THRESHOLD FOR FREE SCHOOL
MEALS IS SO LOW THAT IT EXCLUDES
MANY FAMILIES AND THEIR CHILDREN
WHO ARE FOOD INSECURE, UM, BUT
WOULDN'T QUALIFY UNDER FEDERAL
INCOME GUIDELINES. SO WE URGE
YOU TO REJECT THE PROPOSALS BY
THE L Ó TO PULL BACK FUNDING
FOR SCHOOL MEALS AND INSTEAD
ADOPT THE GOVERNOR'S PROPOSAL TO
CONTINUE INVESTING IN
CALIFORNIA'S VISION FOR SCHOOL
MEALS FOR ALL. THANK YOU SO
MUCH. THANK YOU VERY MUCH.
WELCOME. GOOD MORNING, SENATOR
LAIRD, ANA I OS ON BEHALF OF LOS
ANGELES UNIFIED SCHOOL DISTRICT.
UM, WE WOULD LIKE TO LIFT UP AND
HIGHLIGHT THE COMMENTS AROUND
THE IMPORTANCE OF MAINTAINING
THE COLA, UM, IN PARTICULAR.
WITH WHAT? UH, THICK MAT OFFERED
THAT, UH, OUR COSTS ARE GOING UP
4.5 TO 5% WE JUST SIGNED, UM, A
LEGISLATIVE OR EXCUSE ME. WE
JUST SIGNED A BARGAINING
AGREEMENT FOR OUR STAFF TO
INCREASE THEIR WAGES. AND WE
WERE REALLY COUNTING ON HAVING,
UM, A GREATER COLA THAN WE'VE
SEEN. IN ADDITION TO THAT, IN
LIGHT OF UM, EXPECTED DEFICITS,
WE WOULD APPRECIATE ANY
FLEXIBILITIES POSSIBLE IN THE
PROGRAMS, UM, THAT SOME OF THE
WHICH LE Ó REFERENCED, FOR
EXAMPLE, THE ELLO PROGRAM. ANY
FLEXIBILITIES THAT CAN BE
OFFERED WOULD REALLY HAVE TO OFF
OFFSET CUTS IN OTHER AREAS AND
THE EXPIRATION OF FEDERAL FUNDS.
FINALLY UH, LOS ANGELES UNIFIED
IS PROUD TO HAVE BEEN A DISTRICT
THAT HAS EXPANDED ACCESS TO
TRANSITIONAL KINDERGARTEN AHEAD
OF THE STATE MANDATE. UH, WE
KNOW THAT WE'RE OFFERING HIGH,
UH, HIGH QUALITY EARLY LEARNING
OPPORTUNITIES. TO FAMILIES THAT
MAY NOT HAVE, UM, THAT
OPPORTUNITY OTHERWISE, AND WE
WOULD URGE THE LEGISLATURE TO
REALLY CONSIDER WHETHER AT THIS
POINT IN TIME, UH, IMPOSING
PENALTIES ON DISTRICTS THAT HAVE
EXPANDED OPPORTUNITIES TO EARLY
LEARNING IS THE RIGHT CHOICE.
THANK YOU SO MUCH. THANK YOU AND
YOU KNOW, LAST YEAR WHEN THE
LEGISLATIVE ANALYST WAS
PRESENTING AND SAID ELOP, I WENT
ACRONYM ALERT AND MADE THEM
SPELL IT OUT. AND THAT PERSON IS
WATCHING THIS THING THAT WAS
REALLY UNFAIR. YOU JUMPED ON ME
AND YOU DIDN'T SAY IT. BUT YOU
SAID EXPANDED LEARNING ENOUGH
THAT WE KNOW WHAT THE PICTURE
IS. THANK YOU. WELCOME. MR
CHAIRMAN. UH, GOOD MORNING,
DAVID CAMPOS ON BEHALF OF THE
COUNTY OF SANTA CLARA. FIRST OF
ALL, THANK YOU. AND TO THE STAFF
FOR THEIR GRACIOUSNESS IN
MEETING WITH US TO DISCUSS THIS
VERY IMPORTANT ISSUE OF EXCESS
ERA. WE APPRECIATE AND RESPECT
THEIR WORK. UH, BUT WE BE VERY
STRONGLY DISAGREE WITH THE
ANALYSIS THAT WAS PRESENTED IN
THIS COMMITTEE AND JUST FOR
PEOPLE WATCHING, YOU KNOW, WE
HAD SANTA CLARA VALUE PUBLIC
EDUCATION. WE HAVE A HISTORY OF
INVESTING IN PUBLIC EDUCATION AS
MUCH AS ANY OTHER PLACE IN
CALIFORNIA. BUT WHAT WE'RE
TALKING ABOUT IS A NOT ONLY A
DIFFERENCE OF OPINION IN THE
LAW, BUT A VERY CLEAR INDICATION
FROM THE COURTS THAT THEY ACCESS
. AFF COUNTY LIKE SANTA CLARA
HAVE BEEN RIGHT. ALL ALONG. WHAT
WE'RE TALKING ABOUT HERE IS THE
DEPARTMENT OF FINANCE.
UNFORTUNATELY TRYING TO DO
SOMETHING THAT IT COULDN'T DO IN
THE COURTS. IT'S NOT A
CLARIFICATION THEY'RE TRYING TO
DO AND DO A COURT CASE THAT THEY
LOST. MOREOVER WE HAVE A VERY
SERIOUS CONSTITUTIONAL ISSUE
HERE BECAUSE WHAT WE HAVE SEEN
OVER THE YEARS IS THE DEPARTMENT
OF FINANCE, TRYING TO TAKE
EXCESS MONEY, UH OR ERA MONEY
AWAY FROM FROM LOCAL GOVERNMENT.
AND THAT'S WHY IN 2004 VOTERS IN
CALIFORNIA PASS PROP ONE A. SO
TO THE EXTENT THAT THEY'RE
TRYING TO CHANGE THE ALLOCATION
FOR COUNTIES THAT WOULD BE OUR
CONSTITUTIONAL BUT BEYOND THAT,
BEYOND THE FACT THAT THE COURTS
HAVE SAID WE ARE RIGHT AND
THEY'RE WRONG. WE'RE HERE ABOUT
THE IMPACT ON COMMUNITY. AND
THIS IS WHY I APPRECIATE YOU
HAVE BEING IN THAT ROLE, SIR.
BECAUSE YOU UNDERSTAND THAT WHAT
OFTEN HAPPENS IN SACRAMENTO. UH,
IS THAT BUT DON'T FULLY
UNDERSTAND THE IMPACT ON THE
GROUND. YOU CANNOT TAKE THIS
MONEY AWAY FROM PLACES LIKE
SANTA CLARA CITY AND COUNTY OF
SAN FRANCISCO WITHOUT IMPACTING
THE PEOPLE THAT WE SERVE, AND IN
SANTA CLARA, THAT MEANS THE
SAFETY NET. IT'S NOT JUST THE
COURTS. IT'S ACTUALLY THINGS
LIKE HÌ. I VÆ PREVENTION. IT'S
THINGS LIKE MEALS FOR SENIORS,
AND QUITE FRANKLY THINGS LIKE
BEHAVIORAL HEALTH SERVICES,
WHICH THE STATE WANTS US TO
PROVIDE. AND YET YOU'RE TALKING
ABOUT TAKING $2 MILLION. THAT
WOULD SIMPLY BE DEVASTATING FOR
OUR RESIDENTS. IT WOULD LEAD TO
CUTS IN SERVICES IN THAT SAFETY
NET BUT ALSO LAYOFFS. SO THAT'S
WHY YOUR PERSPECTIVE IS SO
IMPORTANT. HOW DOES THIS IMPACT
THE LOCAL GOVERNMENTS AND IF
IT'S NOT GONNA HELP THE STATE
GENERAL FUND? WHY ARE WE HAVING
THIS CONVERSATION TO TAKE MONEY
AWAY 100 AND $80 MILLION FROM
THESE COUNTIES THAT IS NEEDED IN
THOSE COMMUNITIES? THANK YOU
VERY MUCH. NEXT SPEAKER. THANK
YOU SO MUCH. MR CHAIR JEAN HURST
HERE TODAY ON BEHALF OF THE
URBAN COUNTIES OF CALIFORNIA.
I'M ALSO UM, SPEAKING ON BEHALF
OF MY COLLEAGUES AT THE RURAL
COUNTY REPRESENTATIVES OF
CALIFORNIA, THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES IN THE
LEAGUE OF CALIFORNIA CITIES AS
WELL AS THE SAN MATEO COUNTY
BOARD OF SUPERVISORS, UH, WE
OBVIOUSLY CONCUR WITH OUR COUNTY
, UM, COLLEAGUES THAT HAVE
SPOKEN PREVIOUSLY IN OPPOSITION
TO THE ADMINISTRATION'S EXCESS
ERE PROPOSAL. UM I DO WANNA
STAND UP A LITTLE BIT FOR, UM,
THE AUDITOR CONTROLLERS THAT THE
AFFECT COUNTIES WHO HAVE THE
VERY DIFFICULT JOB OF ACCURATELY
ALLOCATING PROPERTY TAX REVENUES
. THESE ARE VERY COMPLEX
METHODOLOGIES THAT ARE NOT EASY.
UH THEY WORK VERY CLOSELY WITH
THE UM, STAFF AT THE STATE
COMPTROLLER'S OFFICE TO ENSURE
THAT THEY'RE DOING IT RIGHT
BECAUSE THEY ARE SUBJECT TO
AUDIT AND WHEN THEY DO IT WRONG,
THEY GOTTA PAY PEOPLE BACK. THEY
HAVE TO FIX THE PROBLEMS THAT
WERE CREATED. AND SO THIS IS
REALLY A COLLABORATIVE EFFORT.
AND PARTICULARLY IN THESE
COUNTIES, WHERE THAT, UM, THESE
METHODOLOGIES AS WE KNOW, UM,
ARE CONTROVERSIAL THAT THESE
HAVE BEEN CAREFULLY WORKED
THROUGH WITH WITH S¼ èC Ó, UM
WE AT THE ASSOCIATION LEVEL ARE
WORKING HARD TO HELP ASSESS. UH
THE PHYSICAL IMPACT. OF COURSE.
WE'RE WAITING TO SEE THE
LANGUAGE, BUT THE GOAL IS TO
ENSURE THAT THE COUNTIES ARE ALL
SINGING FROM THE SAME PAGE THAT
WE ALL HAVE A COMMON
UNDERSTANDING OF WHAT THE IMPACT
WILL BE SO WE CAN ACCURATELY. UM
UH THAT INFORMATION WITH YOU, UM
THE, UM, NOTION THAT THERE'S
SOME SORT OF RETICENCE OR, UM,
PERHAPS MISBEHAVIOR AT THE
COUNTY LEVEL. I HAVE SOME
CONCERN WITH THAT'S NOT WHAT'S
GOING ON HERE. UH, WE THINK THAT
, UM MAYBE THESE, UH FOLKS ARE
BEING SORT OF UNFAIRLY. UH UH,
MALIGNED. UM I JUST CONCUR, BUT,
UM, WITH, UH, MY COLLEAGUES THAT
HAVE, UH, MENTIONED THE
LITIGATION THAT LITIGATION HAS
CONCLUDED, UH, THAT STATUTE DOES
NOT INCLUDE CHARTER SCHOOLS. UH,
WE DO NOT AGREE, UH, INCLUDING
THEM AS A CLARIFICATION AND
THAT, UH, THE PROP ONE
PROTECTIONS COME INTO PLAY IN
THIS MATTER. AND WE LOOK FORWARD
TO CONTINUING TO WORK WITH YOU
ON THIS ISSUE. THANK YOU. THANK
YOU FOR YOUR SPIRITED DEFENSE OF
AUDITOR CONTROLLERS. WE NEED A
FIRST STAND NEXT YEAR. UM. GOOD
MORNING, UM KATIE, HARD AT THE
CALIFORNIA TEACHERS ASSOCIATION,
WANTED TO COMMENT ON TWO THINGS.
UM THE FIRST, UM èC Tð A HAS
CONCERNS WITH THE GOVERNOR'S $8
BILLION FUNDING MANEUVER
PROPOSAL. UM, AS WE BELIEVE IT
DOESN'T FOLLOW THE CONSTITUTION
AND EXISTING STATUTE, UM, BY
BASICALLY BRINGING DOWN THE
PRIOR YEAR MINIMUM GUARANTEE,
EITHER THROUGH THIS $8 BILLION
OFF THE BOOKS PAYMENT OR THROUGH
, UM, RESERVE PAYMENTS, AS
SUGGESTED BY THE LE Ó, UM, THAT
HAD LONG TERM PERMANENT. ON THE
PROP 98 GUARANTEE. UM SO I WANNA
WORK WITH YOU ON ON THAT ISSUE,
AND THEN AROUND EXCESS ERA, UM,
OUR FAVORITE TOPIC. UM èC Tð A
STRONGLY SUPPORTS, UM, THE
GOVERNOR'S PROPOSAL TO CLARIFY,
UM INCLUDE CHARTER SCHOOLS IN
THAT, UM, AS YOU KNOW, CHARTER
SCHOOLS ARE TREATED AS YOU KNOW,
SAME AS SCHOOL DISTRICTS FOR
FUNDING PURPOSES. UM, JUST
WANTED TO MAKE ONE OTHER COMMENT
. YOU KNOW, THE IN AROUND THE
COURT CASE, UM, THE COURTS RULED
THE WAY THAT THEY DID, BUT THEY
ALSO SAID THE LEGISLATURE NEEDS
TO CLARIFY THIS. UM AND THAT'S
WHAT THE PROPOSAL DOES. SO UM,
THAT'S ALL. THANK YOU. THANK YOU
VERY MUCH. APPRECIATE YOUR
COMMENTS. WELCOME. THANK YOU.
TIFFANY MARK WITH èC F Dð, A
UNION OF EDUCATORS AND
CLASSIFIED PROFESSIONALS. WE
HAVE BOTH PROP 98 SCHOOLS AND
ALSO THOSE WHO ARE OUTSIDE OF 98
. SO I APPRECIATE YOUR COMMENT
ABOUT THAT. AS SUCH, UM WE WOULD
LIKE TO ECHO THE COMMENTS OF èC
Tð A AND ALSO EXPRESS OUR
CONCERNS ABOUT THE $8 BILLION
MANEUVER. WE BELIEVE IT DOES NOT
UPHOLD THE CONSTITUTIONAL
GUARANTEE OF PROPOSITION 98. UM
IN ADDITION TO THAT, WE WOULD
LIKE TO NOTE THAT MAKING CUTS IS
A CHOICE AS YOU'RE ALL WELL
AWARE, BUT THAT THERE'S ALSO THE
CHOICE TO INCREASE REVENUES AND
WE WOULD SUPPORT. UH, MANY
REVENUE INCREASES, INCLUDING BUT
NOT LIMITED TO THE WEALTH TAX.
WE HAVE DISCUSSED AND SPLIT ROLL
TAXES AND ALSO CORPORATE TAXES.
SO WE JUST WANTED TO LEAVE YOU
WITH THAT. AND THANK YOU SO
MUCH. THANK YOU. GOOD AFTERNOON
CHAIR LAIRD MARCUS DETWILER WITH
THE CALIFORNIA SPECIAL DISTRICTS
ASSOCIATION, THE ONLY STATEWIDE
ASSOCIATION REPRESENTING ALL
TYPES OF CALIFORNIA SPECIAL
DISTRICTS, PROVIDING MILLIONS OF
CALIFORNIANS WITH ESSENTIAL
LOCAL SERVICES LIKE PARKS AND
RECREATION, FIRE PROTECTION,
WATER AND WASTE WATER AND MORE.
UH, WOULD LIKE TO ALIGN OUR
COMMENTS WITH THOSE BY THE
PROVIDED BY THE URBAN COUNTIES
OF CALIFORNIA AND OTHER LOCAL
GOVERNMENT STAKEHOLDERS,
SIMILARLY SITUATED AND URGE THE
SUB COMMITTEE TO REJECT THE
PROPOSAL RELATED TO THE
CALCULATION OF EXCESS, ER, THANK
YOU. THANK YOU APPRECIATE YOUR
COMMENTS. MISTER PRESIDENT AND
STAFF, UH JEFF BAER,
REPRESENTING THE RIVERSIDE
COUNTY SUPERINTENDENT OF SCHOOLS
ON THE 23 SCHOOL DISTRICT
SUPERINTENDENTS IN RIVERSIDE
COUNTY. WANT TO EXPRESS OUR
GRATITUDE TO THE ADMINISTRATION
FOR THEIR EFFORTS TO PROTECT
EDUCATION FROM THE IMPACTS OF
WHAT WE'RE SEEING ACROSS THE
ENTIRE STATE WITH RESPECT TO
REVENUES, SENATOR LAIRD WE TAKE
YOUR COMMENTS TO HEART ABOUT
LOOKING AT THE OVERALL BUDGET
PICTURE AT R èC Ó E, FOR
EXAMPLE, RIVERSIDE COUNTY OFFICE
OF EDUCATION. UH, WE SERVE MANY
STUDENTS, UH, IN PROGRAMS THAT
ARE FUNDED OUTSIDE OF
PROPOSITION 98 BY FAR JUST
DIVISION BUDGET WISE, UM IN OUR
COUNTY OFFICES, EARLY EDUCATION
SERVICES. WE PLAY A MAJOR ROLE
WITH, UH, BOTH ALTERNATE
ALTERNATIVE PAYMENT PROGRAMS.
SUBSIDIZED CHILD CARE. SO WE, WE
UNDERSTAND THE NEED TO LOOK AT
THAT BIG PICTURE. UM WANNA ALSO
ASSURE YOU THAT ON THE EDUCATION
MANAGEMENT SIDE, UH, ADVOCATES
ARE HAVING A LOT OF
CONVERSATIONS ABOUT, UH, THE
PROPOSITION 98 MANEUVER AS IT'S
BECOME TO BE KNOWN. WE'RE
STRUGGLING WITH IT. UM, THERE
ARE A MYRIAD OPINIONS ABOUT WHAT
IS THE BEST WAY TO MOVE FORWARD.
UH, WE'LL CONTINUE TO HAVE THOSE
CONVERSATIONS AND LOOK FORWARD
TO CONTINUING THAT CONVERSATION,
BOTH WITH YOU AND WITH STAFF AND
THEN LASTLY, I WANNA THANK YOU
FOR YOUR COMMENTS ABOUT ASSEMBLY
. BILL 218 THE DISTRICT THAT MR
FINE REFERENCED IN HIS
PRESENTATION ABOUT THE $137
MILLION JUDGMENT IS A DISTRICT
IN RIVERSIDE COUNTY, AND WE
ANTICIPATE THERE WILL BE OTHER
DISTRICTS THAT ARE IMPACTED IF
NOT QUITE IN SUCH A DRAMATIC
FASHION, BUT IN A SIMILAR
FASHION, AND, UH WE'LL IN FACT,
UM, I'LL BE IN A MEETING LATER
THIS AFTERNOON WITH COLLEAGUES
WHERE WE'RE EXPLORING A POSSIBLE
SOLUTIONS TO THESE PROBLEMS, AND
WE LOOK FORWARD TO CONTINUING
THAT CONVERSATION WITH YOU AND
STAFF. THANK YOU. GREAT. THANK
YOU. WELCOME. GOOD AFTERNOON, MR
CHAIR AND COMMITTEE STAFF LIZZIE
KONA HERE TODAY ON BEHALF OF THE
OFFICE OF CAT TAYLOR AND THE
AMERICAN HEART ASSOCIATION, AS
WELL AS OUR PARTNER
ORGANIZATIONS, THE CENTER FOR
ECO LITERACY AND NEXT YEAR IN
CALIFORNIA. WANNA ECHO THE CO?
UM THE COMMENTS BY SOME OF MY
COLLEAGUES ON THE TOPIC OF
SCHOOL NUTRITION? WE ARE
STRONGLY IN SUPPORT OF THE
GOVERNOR'S PROPOSED FUNDING FOR
CALIFORNIA'S LANDMARK SCHOOL
NUTRITION PROGRAM, SCHOOL MEALS
FOR ALL AND WE ARE VERY
CONCERNED WITH THE L A Ó S¼
RECOMMENDED CUTS, UM, WHICH
WOULD INCREASE CHILDHOOD HUNGER
REDUCE THE QUALITY OF SCHOOL
MEALS. AND THREATEN THE
LIVELIHOOD OF SCHOOL. NUTRITION
PROFESSIONALS. THANK YOU SO MUCH
FOR YOUR TIME. THANK YOU. GOOD
AFTERNOON, MR CHAIR AND
COMMITTEE CONSULTANTS, UH,
MICHELLE GILL ON BEHALF OF
CALIFORNIA ASSOCIATION OF SCHOOL
BUSINESS OFFICIALS REPRESENTING
OVER 30,000 SCHOOL BUSINESS
LEADERS STATEWIDE. UM WE WANT TO
EXPRESS OUR APPRECIATION FOR THE
STATE'S CONTINUED IN INVESTMENTS
IN CORE PROGRAMS FOR PUBLIC
EDUCATION AMID ECONOMIC
UNCERTAINTIES AND RECOGNIZE THE
PROPOSED BUDGET PREVENTS MID
YEAR CUTS AND DEFERRALS TO LE.
UM, WHILE WE ACKNOWLEDGE THAT
THE COLA FOR Dð èC FF IS NOT
WHAT WE ANTICIPATED TO BE FROM
LAST YEAR. WE DO BELIEVE IT IS
AN EQUITY BASED FUNDING SYSTEM
THAT ALLOWS LE A THE OPPORTUNITY
TO MEET THE NEEDS OF STUDENTS
AND COMMUNITIES AND SUPPORT
FULLY FUNDING THE STATUTORY COLA
FOR THE L Tð FF AND PROGRAMS
OUTSIDE OF THE L èC FF. WE ALSO
SUPPORT THE ADDITIONAL PROPOSED
FUNDING OF $122.2 MILLION
ONGOING FOR UNIVERSAL MEALS,
HELPING PROVIDE SUSTAINABILITY
FOR THE PROGRAMS. WE APPRECIATE
FAKE MATS, PRESENTATION ON THE
FISCAL HEALTH OF SCHOOL
DISTRICTS AND REQUESTED
CONSIDERATION OF THE FOLLOWING
COST PRESSURES ARE EXPERIENCED,
INCLUDING INCREASED COST OF
SERVICES AND INCREASED AMOUNT OF
STUDENTS IN NEED OF SPECIAL
EDUCATION INCREASE TO THE
CALPERS SCHOOL EMPLOYEE
CONTRIBUTION RATE, UM, LIABILITY
INSURANCE AND ALSO UTILITY COST,
ESPECIALLY FOR SCHOOL DISTRICTS
THAT ARE PARTICIPATING IN ELOP.
THANK YOU. THANK YOU VERY MUCH.
GOOD AFTERNOON. KI¾M LE IS
REPRESENTING THE CALIFORNIA
COALITION FOR YOUTH AND WHAT TO
EXPRESS OUR SUPPORT FOR THE
SCHOOL MEALS AS WELL AS THE
MONEY FOR THE HOMELESS YOUTH
TECHNICAL ASSISTANCE CENTERS.
UM, THERES WAS OVER 8500 YOUNG
PEOPLE WHO WERE UNACCOMPANIED IN
OUR Kò 12 SYSTEM, EXPERIENCING
HOMELESSNESS LAST YEAR AND KNOW
THAT THESE MEALS CAN BE MAYBE
THE ONLY PLACE THAT THEY SCHOOLS
CAN BE THE ONLY MEALS THAT THEY
GET THAT WHOLE DAY. SO WE WANNA
MAKE SURE THAT THE DOLLARS ARE
THERE FOR OUR YOUNG PEOPLE, UM,
SWITCHING HATS FOR THE
CORPORATION FOR EDUCATION
NETWORK INITIATIVES IN
CALIFORNIA. UM WE SUPPORT THE
ADMINISTRATION'S PROPOSAL FOR
INITIAL $5 MILLION FOR THE
BROADBAND. STRUCTURE GRANT
PROGRAM. WE'VE BEEN ABLE TO
SUCCESSFULLY CONNECT. UM 44
SCHOOLS OVER. UM 13 COUNTIES
REPRESENTING 1400 STUDENTS,
STAFF AND FACULTY, UM, TO
GETTING BROADBAND FIBER BASED
SOLUTIONS. THANK YOU. THANK YOU.
GOOD AFTERNOON. I'M CHAIRMAN
LAIRD. MY NAME IS LAURIE
FURSTENFELD. AND I'M, THE LEGAL
DIRECTOR OF LEGISLATIVE ADVOCACY
AT THE CHILD CARE LAW CENTER.
PARENT VOICES. CALIFORNIA ALSO
WANTED TO KNOW THAT THEY'RE
ALIGNED WITH OUR COMMENTS. THE
STATE BUDGET IS THE MOST
IMPORTANT LEGISLATION FOR
CREATING AN EQUITABLE SOCIETY
FOR ONE BLACK AND BROWN FAMILIES
WHO AND TO HAVE THE CHILD CARE
THEY NEED AND THE CHILD CARE
PROVIDERS ARE FAIRLY COMPENSATED
FOR THEIR HARD WORK AND
DEDICATION TO OUR CHILDREN.
CHAIRMAN LAIRD. WE APPRECIATE
YOUR THOUGHTFUL QUESTIONS IN
RAISING CONCERNS ABOUT THE
GENERAL FUND TAKING THE HIT WITH
THE GOVERNOR'S $8 BILLION
PROPOSAL. WE ALSO APPRECIATE YOU
RAISING THAT WE NEED TO BE
MINDFUL IN MEETING THE NEEDS OF
THE WHOLE CHILD IN APPLYING A
BALANCED APPROACH. WE URGE THE
COMMITTEE TO CAREFULLY CONSIDER
OTHER OPTIONS TO SOLVE THE $8
BILLION SHORTFALL THAT PROTECTS
THE GENERAL FUND NOW AND VITAL
LIFE GIVING GENERAL FROM
PROGRAMS IN COMING YEARS SUCH AS
CHILDCARE. AND SOLVE THE PROP 98
OVER APPROPRIATION WITHIN PROP
98 TO THE EXTENT POSSIBLE WHILE
PROTECTING THE INDIVIDUALS AND
COMMUNITIES OF COLOR. THANK YOU.
THANK YOU VERY MUCH, UM, THAT
COMPLETES ARE A PUBLIC COMMENT
PERIOD AND LET ME THANK
EVERYBODY BECAUSE I KNOW
SOMETIMES IT'S HARD TO SIT
THROUGH THE WHOLE HEARING AND
THEN GET TO PUBLIC COMMENT. SO
WE APPRECIATE YOU DOING THAT AND
I THINK THE HEARING AND THE
PUBLIC COMMENT JUST DEMONSTRATE
HOW HARD THIS IS GOING TO BE. SO
WE'VE GOT, UH, FOUR MORE MONTHS
TO WORK ON THIS AND LOOK FORWARD
TO PARTNERING WITH ALL OF YOU
AND HAPPY TO AIR THE ISSUES VERY
CLEARLY TODAY. SO WITH THAT, UH,
THE BUDGET SUBCOMITTEE NUMBER
ONE ON EDUCATION. AND ADJOURNED.