BUDGET ISSUES

For updates on the progress toward adoption of
the 2003/04 budget, please check the Hot Issues Page

Update on 2003-04 California State Budget
(May 23, 2003)

Last week we told you that the Governor's May Revise Budget Proposal appeared to contain no funding cuts that specifically targeted charter schools. We also predicted that the budget review process would move very quickly this year. Both of these remain accurate.

Both the Senate and Assembly Budget Subcommittees on Education have completed their work on the 2003-04 State Budget. Basically the subcommittees approved the work in the Governor's May Revise. One difference is that both subcommittees created a "deficit factor," not proposed by the Governor, for revenue limits equal to the cost-of-living adjustment that is not funded and the 1.2% reduction. This creates pressure to eliminate the deficit and restore revenue limit funding in future years.

The subcommittees did cut an additional $83 million from specific programs, which they immediately redirected to restore $83 million in the Governor's proposed cuts. None of these programs are charter specific. More complete information can be found below.

It is now clear that the estimate to fund the charter school block grant for the current year was too low to cover the costs of all charter school students. There is a deficit. There are deficits in a number of other categorical programs also. These deficits create the need for a deficiency request that must be approved by the legislature. Through the very quick and cooperative efforts of CANEC, CSDC, EdVoice and CDE, and with the support of Assembly Budget Subcommittee 2 Chairman Joe Simitian, this issue was included at the very last minute in the Subcommittee's actions. This inclusion gives us a better opportunity to make sure the deficiency to the charter school categorical block grant is resolved through the budget process.

The charter school community must remain very vigilant during this budget process. We anticipate continued non-stop activity on the budget through June. It remains entirely possible that CANEC will need to call on you with virtually no notice in the near future for letters and phone calls. Should charter schools be faced with the possibility of disproportionate funding cuts, we will immediately need your help in making our representatives aware that the charter community is following their actions.

Please continue to check your e-mail DAILY for listserv announcements and check the CANEC website (http://www.canec.org/articles.html) for budget updates. We continue to actively follow all phases of budget negotiations, but much of the work takes place behind closed doors and at all hours of the day and night. We will give you the greatest notice possible should we hear of any new threats to charter schools' funding and will continue to provide you with routine updates on budget issues as actions occur.

Helen Wallquist
Advocacy Coordinator, CANEC
916-798-0965
wallquist@canec.org

SPECIFIC CATEGORICAL CUTS AND CREDITS

The cuts approved by the Budget Subcommittee, which are in addition to the cuts proposed in the Governor’s May Revision, are as follows:

These funds were then redirected by the subcommittee to:

Past Information:

May Revise Budget Proposal for K-12 Education and Charter Schools May 14, 2003

Budget Update: Governor's Proposed Mid-Year Cuts And 2003-04 Budget January 2003

Return to CANEC Legislation & Advocacy

• Most recent update: June 16, 2003

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