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Posted by: John_Hamilton on 12/18/2012 05:40 PM Updated by: John_Hamilton on 12/18/2012 05:40 PM
Expires: 01/01/2017 12:00 AM

Assemblymembers Nestande and Olsen Re-Introduce Measure to Eliminate Education Budget Deferrals

Sacramento, CA...Today, Assemblymembers Brian Nestande, R- Palm Desert, and Kristin Olsen, R-Modesto, introduced Assembly Constitutional Amendment 2 (ACA) that will stop the practice of balancing the state budget on the backs of our schools....

“The practice of deferring education dollars to pay for other state programs has gotten out of control. Our schools are going bankrupt over this scheme and it is not fair to our students, teachers, or schools,” said Nestande. “It is time we have an honest budget that give our schools what they are constitutionally owed. Our children deserve nothing less than that.”

Nestande and Olsen argue that education should be the top priority in the state budget. Ten billion dollars is now deferred annually, with much of those funds not reaching schools until after the end of the school year. Our schools are forced to take out loans to cover the cost of the shortfalls, and they alone are responsible for paying the interest, which is often millions of dollars annually.

“Sending our schools an IOU every year demonstrates upside down priorities and poor fiscal management,” said Olsen. “For years legislators have touted the importance of education as a top budget priority, and it’s time that became a reality. We need to stop the practice of deferring education money once and for all.”

Beginning in the 2001-02 school year as a small and temporary budget solution, and increasing significantly in 2008-09, California has relied excessively on budgetary and cash deferrals to K-12 school districts and community colleges to balance the state budget.

Since cash deferrals are applied at the same percentage across the board, school districts with lower property tax revenue suffer disproportionately by forcing them to draw larger loans and incur more interest to close their disproportionate budget gap. Several local school districts have recently passed resolutions admonishing this practice.


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