The state budget for next year has deteriorated by $6 billion since January, but Gov. Jerry Brown is not proposing to cut money for K-12 schools – immediately. But if voters in November reject Brown’s proposed $8.5 billion tax increase, schools will be a $5.5 billion piece of what the governor has called “a day of reckoning.”
In his revised budget, Brown is proposing massive reductions in the budgets for courts, as well as state worker furloughs and punishing Medi-Cal cuts to hospitals and nursing homes. Because state revenues have fallen, Brown also could have cut Proposition 98 funding for this year by nearly $800 million. But that would have been impractical this far into the year, so instead he is proposing to redesignate the overappropriation as a prepayment toward settling up a debt to schools under an agreement that Gov. Schwarzenegger made with the California Teachers Assn.