California Teachers Association

January / February 2017

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Proposition 98 Revenue 2007–08 to 2017–18 Prop. 98 guarantees a minimum level of funding to be spent on K-14 education. Gov. Brown's 2017-18 budget plan pegs the Prop. 98 funding level at $73.5 billion. Legislative Update Proposed State Budget Includes Rise in Education Spending G O V. J E R R Y B R O W N presented the first draft of the state's 2017-18 bud- get in January. The proposed $177.1 billion budget includes $122.5 billion in the general fund. Because of declining state revenues, Brown predicts California will face a $1.6 billion deficit as soon as next summer if it does not temper spending. His budget raises education spending for California's public schools a n d c om mu nity c o l l ege s to $ 7 3 . 5 bi l li on , f rom $ 7 1 . 4 bi l li on i n th e current fiscal year. Under Proposition 98, passed in 1988 (see chart), $73.5 billion is the min- imum amount guaranteed to be spent on education. e state's revenue woes lowered the 2016-17 minimum guarantee under the Prop. 98 funding formula, meaning the amount approved by the Legislature in June for K-12 schools and community colleges dropped by $500 million. "ere is a lot at stake at this very moment, and the uncertainty we're fac- ing with the incoming federal administration is causing a lot of angst among educators and in our communities," says CTA President Eric Heins. "at's why we are cautiously looking at all the information that was presented to us in Gov. Brown's state budget proposal." Other educational highlights of Brown's proposed budget: • Local Control Funding Formula, which provides extra money for stu- dents with high needs, including low-income students and English learners: Funding increases by $744 million over 2016-17 levels, a minor increase from the current year that keeps the LCFF funding target at 96 per- cent (full funding is expected in 2020-21). • Proposition 30 revenue: e budget reflects the final year of revenue from the quarter cent state sales tax increase effected by Prop. 30, passed in 2012. Prop. 30 also raised income tax on the wealthiest Califor- nians; that revenue will continue for two more years, and will then be maintained for 12 additional years, thanks to Prop. 55, passed in November. • Per - p upi l sp en di n g u n d er P ro p . 9 8 w i l l re a ch about $10,900, up from about $10,600 in the cur- rent budget year. Brow n n ot ed that i f th e Af ford abl e Care Act i s repealed, it would jeopardize $16 billion in federal Medi- Cal health care subsidies for 4 million Californians and have a significant impact on future budgets. Brown will present a revised proposal in May. For the proposed budget's impact on higher education, see page 40. 39 January / February 2017 advocacy $56.6 Proposition 98 Revenue 2007–08 to 2017–18 Dollars in Billions 2007–08 $45 $50 $55 $60 $65 $70 $75 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17 $49.2 $51.6 $49.6 $47.3 $58.0 $58.9 $67.2 $69.1 $71.4 2017–18 $73.5 (proposed)

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