The Current Situation
- Significant additional funding for schools and community colleges as a result of higher revenues from Proposition 30 and continued improvement in the economy, including $4.5 billion in additional funding for the so-called Local Control Funding Formula (LCFF), which provides a substantial amount of funding for K-12 schools based on how many low-income, non-English speaking, and foster children each district has.
- An increase in funding for the University of California and the California State University, with the expectation that there will not be increases in tuition this year.
- A multi-year plan to eliminate most of the so-called “wall of debt” -- budgetary obligations totaling around $30 billion incurred in recent years.
- Among the debts the Governor proposes to pay off are $1.6 billion in Economic Recovery Bonds the state used to finance the deficit in 2004 and the remaining $6.2 billion in deferred payments to school districts and community colleges.
- The budget also proposes to spend $815 million on one-time deferred maintenance projects and $250 million in cap and trade revenues on high speed rail .
- Lastly, the Governor proposes to create new rainy-day fund mechanism to replace the existing Proposition 58 reserve approved by the voters in 2004.