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Revolutionizing Education Finance in California

Delve into California's education system failures - low rankings in funding & staffing - exploring its history, current issues, and potential for change. Dive deep into the Robles-Wong v. California lawsuit & Proposition 13&98 impacts. Unveil the complexity of educational financing and governance in California, offering insights into the challenges and opportunities for reform. Discover the key issues surrounding school funding mechanisms, categorized funding, and the impacts of tax legislation on education. A critical examination of the California State Legislature's role in revenue measures and tax increase proposals for educational advancement.

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Revolutionizing Education Finance in California

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  1. Poway Unified and the State of Education

  2. “There is a failure here that topples all our success.” - John Steinbeck

  3. 3 Questions: • Where are we? • How did we get here? • Where are we going?

  4. Where are we?

  5. California • 50th in students per teacher • 47th in per pupil funding • 47th in education spending as a percentage of personal income • 49th in students per guidance counselor • 50th in students per librarian • 47th in total principals and assistant principals • 48th in total school staff • 46th in district officials and administrators • 45th in instructional aides • 49th in access to computers.

  6. National Assessment of Education Progress (NAEP) • 47th in 4th grade reading • 46th in 8th grade math.

  7. To Reach the National Average, Need: • 104,000 teachers • 26,569 instructional aides • 5,740 guidance counselors • 5,740 librarians • 5,630 principals or assistant principals • 63,000 more computer work stations

  8. Robles-Wong v. California The California School Finance Lawsuit • On May 20, 2010 a historic lawsuit was filed against the State of California requesting that the current education finance system be declared unconstitutional and that the State be required to establish a school finance system that provides all students an equal opportunity to meet the academic goals set by the State.

  9. www.fixschoolfinance.org • CAPTA, CSBA, ACSA, and over 60 school districts, parents and students

  10. 2010-11 State Tax Dollars 39.2 cents out of every dollar – $35.8 billion – supported elementary and secondary education Where do state tax dollars come from?

  11. 1980 – State and Federal Categorical Programs – 13% of state education funding Today – 1/3 of state funding is categorical with general purpose funds being reduced correspondingly Categorical Funding (Funding tied to a specific program or service)

  12. How did we get here?

  13. 1849 – Cal. Const. art. IX, s2 – The State School Fund was created 1910 – Const. Amendment – No longer finite source 1920 – Const. Amendment - State Average Daily Attendance (ADA) and local property taxes 1946 – Const. Amendment: “The Foundation Program Minimum (state “basic aid” + local district tax revenues < Foundation Program Minimum, then State “Equalization Aid”)

  14. 1971 – Serrano v. Priest • 1972-1973 Response to Serrano – “Revenue Limit” controls • Revenue Limit was based on the state’s Foundation Program Minimum Funding and local property tax revenues as of 1972-73

  15. Revenue Limits • Unrelated to actual cost of district educational program • “Level Up” and “Level Down” • Became maximum funding levels (adjusted for inflation only) • Continues to be based on historical data unrelated to actual costs of providing educational program and services

  16. 1978 – Proposition 13 • Rolled property assessments to 1975-76 levels • Limited property tax rate to 1% • Gave state complete control in allocating reduced property tax revenues • Eliminated school districts’ ability to levy ad valorem property taxes for education

  17. 1978 – Proposition 13 • 60% reduction in local property tax revenues • Share of property tax revenues allocated to schools reduced from 53% to 35% • 1 year after Proposition 13 school district revenues from State went from 23% to 53% **Education now forced to compete with other programs for General Fund revenues**

  18. 1988 – Proposition 98 • Minimum funding level for K-14 education • Ties school funding to growth in State General Fund revenues • Volatile and unpredictable, with revenue projections changing over the school year • Can be suspended during economic crisis • Funding formulas based on 1986/87 education budget, which was based on antiquated caps set in 1970’s (adjusted for cost of living and population).

  19. 1988 – Proposition 98 • “Minimum” has become a Maximum • Includes: child care, adult education, probation schools, California Youth Authority programs, health screening, public safety… • Accounting gimmicks • Prop. 98 funding cut by $17 Billion in last 2 years

  20. Governor’s Committee on Education Excellence - 2007 • “Quite simply, the finance and governance system is broken and requires fundamental reform….”

  21. “Getting Down to Facts” Studies • “The state school finance system is extraordinarily complex and has no coherent conceptual basis.”

  22. No longer need supermajority to pass budget, but still need 67% to pass any measure resulting in a tax increase, including the closing of tax loopholes.

  23. Americans for Tax Reform • YOUR STATE • Taxpayer Protection Pledge • I, ____________, pledge to the taxpayers of the _____ District of the • State of _________ and to all the people of this state, • that I will oppose and vote against any and all efforts to increase taxes.

  24. California State Legislature • For Revenue Measures, including closing (unintended) tax loopholes, Need: • 27 of 40 Senators; and • 54 of 80 Assembly Members • 13 of 15 Republican Senators signed pledge (leaves 27 votes) • All 28 Republican assembly members signed pledge (leaves 52)

  25. Where are we going?

  26. Children working as Janitors? Pizza served as a Vegetable? LET’S HOPE NOT!

  27. Two 2010 Propositions • California Citizens Redistricting Commission http://wedrawthelines.ca.gov/ • Prop.14 - Top Two Candidates Open Primary Act.

  28. November 2012 Proposed Ballot Initiatives (so far) • Brown, Democrats, CTA, SEIU ($7 Billion) - >$500,000 - Up to 2% higher income taxes for five years. - Sales Tax: Temporary ½ cent increase.

  29. November 2012 Proposed Ballot Initiatives (so far) • Our Children, Our Future ($10 Billion) • Molly Munger, PTA • Raises personal income tax rates on all but the poorest Californians, with the greatest increases on the wealthy.

  30. November 2012 Proposed Ballot Initiatives (so far) • Think Long Committee ($10 Billion) • - Billionaire Nicolas Berggruen, Silicon Valley executives, and others. • Taxes services • Reduces personal & corporate tax rates (except out of state) • $5 Billion for K14 schools after debt paid down

  31. November 2012 Proposed Ballot Initiatives (so far) • Restoring California ($6 Billion) • (CFT, Courage Campaign, UC Student Association) • Income tax rate: +3 for $1 million - $2 million. +5 for > $2 million • 3/5 to K12 + higher ed.

  32. Poway Unified and the State of Education

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