OVERVIEW OF
KEY ISSUES

BUDGET ISSUES

Budget Update as of June 13, 2003 - Progress Has Stalled

This is the weekly Friday update on the progress of work toward the adoption of the 2003/04 budget. CANEC is pleased to follow this work on your behalf and to provide these updates.

The legislature will not meet its constitutional obligation to pass a budget by June 15th. The Budget Conference Committee recessed on June 11th without completing its work. The chair, Assemblywoman Oropeza, indicated that the committee would reconvene after action by the Big Five. It appears we are again facing an impasse over the state budget. Republicans have firmly locked themselves into a no new taxes position. Democrats say they refuse to cut more deeply into social programs. In addition, the effort to recall Governor Davis is now seriously affecting the willingness of some parties to make progress toward an adoption of a budget.

The education community, including the charter school community, agrees that the budget as proposed is the best deal K-12 Education will be offered this year. There is a high level of anxiety that a delay in adopting the budget could result in a new round of additional cuts.

The "Big Five" (Governor Davis, Senator John Burton, Senator Jim Brulte, Assemblyman Herb Wesson and Assemblyman David Cox) will be playing a major role in the next steps of the budget process. Most of their work will occur behind closed doors.

Although stalled on the issue of a tax increase, the Conference Committee took the following actions on K-12 education issues. Please note that none of these actions are charter specific.

Instructional Materials funding was reduced by $75 million with the inclusion of language allowing schools to continue to use AB 2519 adopted materials through July 2005.

Supplemental Grants funding was reduced from $242 million to $162 million.

Peer Assistance Review funding was reduced even further than the Governor had proposed in the May Revision. The Committee recommends a total 65% reduction in this fund, leaving only $32 million.

The AVID program was restored to full funding, with dollars coming from non-Proposition 98 dollars.

School library funding level was adopted at the lower level, leaving approximately $8.7 million in that fund.

School districts' Mega-Item transfer authority was reduced to no more than 10% out of any one program, and 15% in to any one program.

Reached a compromise providing:
* A reduction in required reserve for economic uncertainties (AB 1200 reserve) by 50% for the next two years;
* A reduction in the restricted reserve required for routine maintenance to 2%;
* Authorization of school districts to access up to 100% of 2002-03 categorical program carryover dollars in the budget year, excluding Special Education, Economic Impact Aid, Targeted Instructional Improvement Grants, Immediate Intervention/Underperforming Schools (II/USP), High Priority Schools Grant Program (HPSGP), Instructional Materials. This requires that first priority for use of accessed reserves must be to backfill the 1.198% budget year revenue limit reduction; and
* Established a deficit factor for revenue limits for the next two years.

The charter school community must still remain very vigilant during this budget process. If your school year is ending, please register to receive these listserv announcements at your home e-mail address over the summer. To do this, go to www.canec.org and choose Register to Participate in the lower right hand corner of the screen.

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 until Governor Davis has signed the budget. 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.

June 13, 2003 Listserv
June 7, 2003 Listserv
May 31, 2003 Listserv
May 23, 2003 Listserv
May 14, 2003
CANEC's March 10, 2003 budget update.

California ranks 46th in the country in per pupil spending when adjusted for regional cost of living differences. Analyzed in terms of priority, California ranks 43rd in percent of total taxable resources spent on education. We will likely be asking for your help in educating your representatives about the need for equitable treatment for charter school students and protection of education funding for all public school children.

LEAP FILING WAS DUE 6/10/03

All direct funded charter schools that wish to receive federal funding have until June 10 to file an LEA Plan required under No Child Left Behind. For more information see our earlier listserv messages from May 19 , May 23, and June 4.

CANEC is proud to provide additional information and assistance in the completion of these forms.

Please note that questions regarding filing of the LEA Plan may be directed to Lucille Gonzales at (916) 319-0940 or by e-mail at lgonzale@cde.ca.gov. Questions regarding requirements of charter schools may be directed to Deborah Herrmann at (916) 445-1014 or by e-mail at dherrman@cde.ca.gov. CANEC cannot tell you whether you need to file these reports of not. Please address that question to Deborah Herrmann.

HOT LEGISLATIVE ISSUES

Many important issues are happening in the legislative arena right now. Your active participation is important.

AB 615 (Bates) and AB 1464 (Bates) are CANEC sponsored bills. We will likely be contacting you, our members, to advocate in favor of these bills as the legislative session progresses.

AB 1137 (Reyes) is an important bill for charter schools. We are closely following the evolution and progress of this bill and expect to be contacting you, our members, with important information as the legislative session progresses..

STAR TESTING

The time for the annual administration of STAR tests is here. Please remember how important it is that all charter schools test their students. Testing rates have been an ongoing political issue with regard to funding and regulation of charter schools. At this time, state mandated testing is the only accountability measure accepted by many politicians.

I have been hearing wonderful reports from charter schools across the state about their participation rates for this year's STAR testing. THANK YOU! If you have good news to share, please send an e-mail to wallquist@canec.org.

On behalf of all charter schools, thank you very much to the schools who helped to educate their parents of the far reaching impact of their decision to exempt their child(ren) from this testing. The following information is provided to help you educate your parents about the importance of having their students participate in the STAR tests.

Text of Letter to Charter Schools
Handout for Parents Considering Waivers
CANEC STAR Testing Policy

• Most recent update: June 16, 2003

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