Lawsuit filed to get back $3.1 Billion in Education Funding

CTA lawsuit to Enforce Proposition 98

Background

* In 2003, the education community, including CTA, reached agreement with Governor Arnold Schwarzeneger to “rebench” the Proposition 98 guarantee by $2 billion. That agreement was codified as Chapter 213 of the Statutes of 2004, which suspends Prop. 98 and states that schools shall receive just $2.004 billion less than they otherwise would have been entitled to in 2004-05.

* The agreement called for money to be restored as state revenues increased. Under Proposition 98, the agreement, and Chapter 213, the schools were entitled to a share of those additional revenues. Because of the increase in state revenues during the 2004-05 fiscal year, the schools became entitled to an additional $1.8 billion in 2004-05. Schools were not provided that additional funding; instead, the money was spent on other programs.

* To compound the problem, the guarantee for 2005-06 was calculated using the unlawfully-low funding provided to the schools in 2004-05. The effect was to improperly lower the 2005-06 guarantee and create a funding shortfall of an estimated $1.3 billion, for a total loss of $3.1 billion over the two fiscal years. This $3.1 billion is over and above the $2 billion reduction that was agreed upon.

* CTA is suing to enforce Proposition 98 and Chapter 213 of the Statutes of 2004. The defendants are Governor Schwarzenegger and Director of Finance Tom Campbell. Controller Steve Westly is named for remedial purposes only. The plaintiffs will be the Executive Officers of CTA, Superintendent of Public Instruction Jack O’Connell and parents whose children have been affected by the failure to honor the agreement.

Talking Points

* CTA is suing to enforce Chapter 213 in order to protect the provisions of Proposition 98, the voter passed minimum funding guarantee for schools. These provisions prevent catastrophic cuts to education funding.

* Even with Proposition 98, California school funding is among the worst in the nation and is almost $1000 below the national average.

* The failure of Governor Schwarzenegger to adequately fund public education as required by Proposition 98 in the state constitution has had real effects on our schools: schools have closed; class sizes have increased; student programs have been cut; teachers, nurses, counselors and librarians have been laid off; and students lack basic textbooks and materials.

CTA was forced to file this lawsuit because of the failure of the Governor to propose a budget that honored either his promise to schools and kids or the requirements of Proposition 98, state statute and current law.

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Steve Hopcraft
Hopcraft Communications
Government and Media Relations; Campaign Management
Phone.916.457.5546 :: Fax.916.457.5548
http://www.hopcraft.com