ĚÇĐĶŻÂţvlog

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 ĚÇĐĶŻÂţvlog 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.

â€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

College & Workforce Readiness Webinar How High Schools Can Prepare Students for College and Career
Explore how schools are reimagining high school with hands-on learning that prepares students for both college and career success.
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
School Climate & Safety Webinar
GoGuardian and Google: Proactive AI Safety in Schools
Learn how to safely adopt innovative AI tools while maintaining support for student well-being. 
Content provided by 
Reading & Literacy K-12 Essentials Forum Supporting Struggling Readers in Middle and High School
Join this free virtual event to learn more about policy, data, research, and experiences around supporting older students who struggle to read.

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's Education Budget Calls for Billions in Cuts, Major Policy Changes
The proposal includes a plan to eliminate 18 existing grant programs and replace them with one funding stream.
7 min read
President Donald Trump holds up a signed executive order alongside Secretary of Education Linda McMahon in the East Room of the White House in Washington, Thursday, March 20, 2025.
President Donald Trump holds up a signed executive order alongside Secretary of Education Linda McMahon in the East Room of the White House in Washington on March 20, 2025. The president's budget proposes a 15% cut for the U.S. Department of Education.
Ben Curtis/AP
Education Funding Linda McMahon Offers Few New Specifics on Ed. Dept. Budget Cuts
The Education Department wants to cut billions in spending but has offered few specifics on funding streams it wants to consolidate.
5 min read
Education Secretary Linda McMahon appears before the House Appropriation Panel about the 2026 budget in Washington, D.C. on May 21, 2025.
U.S. Secretary of Education Linda McMahon appears before a House appropriations panel on May 21, 2025, to speak about her department's 2026 budget proposal. The budget would cut department spending by 15%.
Jason Andrew for Education Week
Education Funding Trump's Cancellation of States' COVID-Relief Funding Is on Hold Again
Pandemic-relief funds in 16 states have been temporarily restored—again—just days before they were set to expire.
3 min read
3d Render Red glossy Glass Dollar Sign icon in circle Blue Soft Maze, problems, solutions, strategy concept
iStock/Getty
Education Funding How Trump’s School Priorities Will Shape New Ed. Dept. Grants
The Department of Education on Tuesday announced the priorities it will use to award competitive grants.
6 min read
High school student teachers read a book to a preschool class.
High school student teachers read a book to a preschool class. Evidence-based literacy instruction will be one priority for the Trump administration as it awards competitive education grants. The priorities in those competitions will be school choice and "returning education to the states."
Allison Shelley for All4Ed