Ķvlog

Education Funding

California Governor Eyes Plan to Cap State Spending

By Joetta L. Sack — December 10, 2003 3 min read
  • Save to favorites
  • Print
Email Copy URL

California Gov. Arnold Schwarzenegger pledged to protect education funding during his campaign. But less than a month after taking office, the governor is discussing a plan to cap state spending, which many say would result in sizable cuts to K-12 and higher education programs.

The governor has asked the legislature to approve a measure that would allow Californians to vote on a $15 billion general bond to “refinance” the state’s deficit. He also proposed a total of $1.9 billion in cuts for fiscal years 2004 and 2005, out of a total annual state budget of about $90 billion.

The governor wants to cut an $85 million program that helps minority students gain access to college.

Gov. Schwarzenegger, a Republican, says the measures, which he calls the “California Recovery Plan,” are needed to shore up the state’s struggling economy and ensure that the state does not spend more than it collects in revenues.

The move has infuriated some Ķvlog and Democrats, and threatens to end their amicable relationship with the governor that was evident in the first few weeks after the Oct. 7 recall election (“Educators Watchful as California Opens Schwarzenegger Era,” Oct. 15, 2003.)

Last week, State Treasurer Phil Angelides, a likely Democratic candidate for the state’s 2006 gubernatorial race, launched a campaign against the governor’s bond plan. Speaking at a private school on Dec. 2, Mr. Angelides said the proposal would spread out the state’s debt over up to 30 years, and would force the next generation to pay for current spending.

“Clear and simple, this massive deficit-borrowing proposal will mortgage our children’s future,” he said. “Lawmakers should reject the governor’s bond plan and call on him to bring them a comprehensive plan to truly balance the budget.”

If approved by the legislature, residents would vote on the bond issue as early as March.

Also at issue is Proposition 55, a $12 billion school facilities bond that is scheduled to go before voters in March. If the governor succeeds in getting his measure on the March ballot, he may ask the legislature to reschedule the Proposition 55 vote in order not to compete with the general fund bond and create too much debt.

‘Important Step’

The governor’s office said that $15 billion bond would only be sold if Californians agreed to a constitutional spending limit that would fix the amount of general-fund money the government can spend. The plan would also deposit extra money into a rainy day fund.

Vincent F. Sollitto, a spokesman for the governor, said he would not cut K-12 spending and that he believed cutting the college-outreach program would have the least impact on classrooms.

State Superintendent of Public Instruction Jack O’Connell said that the plan to cap spending would adversely affect Proposition 98, the state’s 1988 constitutional amendment that guarantees schools will receive a minimum funding level from the state. In harsh economic circumstances, Proposition 98 allows the legislature and governor to suspend the school aid guarantee, but stipulates that the lost funds would be paid back to schools when the economy improves.

Under Gov. Schwarzenegger’s proposal, schools would not recoup lost funds, which could amount to about $2 billion a year, said Rick Miller, Mr. O’Connell’s spokesman.

“Amending the constitution is a serious and important step, and we should not move too fast or we will end up with a flawed result,” said Mr. Miller. He added that Mr. O’Connell believes Gov. Schwarzenegger will continue to support Proposition 98, as he promised during his campaign this fall.

Gov. Schwarzenegger called the legislature back into a special session just after taking office on Nov. 17 to deal with the budget.

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Hidden Costs of Special Ed Vacancies: Solutions for Your District
When provider vacancies hit, students feel it first. Hear what district leaders are doing to keep IEP-related services on track.
Content provided by 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Privacy & Security Webinar
How Technology Is Reshaping Childhood
How do we protect kids online while embracing innovation? Learn about navigating safety, privacy, and opportunity in the Digital Age.
Content provided by 
Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.

Read Next

Education Funding Trump Holds Back $2 Billion for Education Grants. What Will Happen Next?
The White House is keeping congressionally approved money locked up through a little-known process.
11 min read
050626 funding cuts trump schools lieberman fs 2270953986
Getty
Education Funding A School Wants a Tornado Shelter. A Federal Grant Keeps Getting in the Way
The district still can't spend a FEMA grant it was originally awarded in 2022.
9 min read
FemaGrant Maiorella 02
A new gym under construction in Wisconsin's Cuba City school district, pictured April 16, 2026, would have also served as a tornado shelter, thanks to an $8.8 million FEMA grant. But nearly four years after it was awarded the grant, the district still doesn't have the money.
Arthur Maiorella for Education Week
Education Funding Trump Sidestepped Congress on More Than $1 Billion in Ed. Spending Last Year
Newly published documents show how the Ed. Dept. departed from Congress' plans.
13 min read
The likeness of George Washington is seen on a U.S. one dollar bill, March 13, 2023, in Marple Township, Pa. The nonpartisan Congressional Budget Office says it expects the federal government will be awash in debt over the next 30 years.
Newly published budget documents show the U.S. Department of Education, in the first year of President Donald Trump's second term, took roughly $1 billion Congress appropriated for specific education programs and spent it differently than how lawmakers intended—or didn't spend it all.
Matt Slocum/AP
Education Funding Federal Funds for Schools Will Still Flow Through Ed. Dept. System—For Now
The Trump administration has been touting its transfer of K-12 programs to the Labor Department.
5 min read
Remaining letters on the Department of Education on Wednesday, March 18, 2026, in Washington.
Remaining letters on the U.S. Department of Education building in Washington on Wednesday, March 18, 2026. Despite the agency's efforts to shift management of many of its programs to the U.S. Department of Labor, key K-12 funds will continue to flow through the Education Department's grants system this summer.
Allison Robbert/AP