Governor's new budget proposal: No big surprises for schools Governor's new budget proposal: No big surprises for schools (May 19, 2004)

Gov. Arnold Schwarzenegger's latest budget proposal -- known as the "May revise" -- brought positive news and no surprises for K-12 school districts last week, school officials said.

Among his proposals:

** A 2.4 percent cost-of-living increase for so-called "revenue-limit" districts -- most districts in California -- that are funded on a per-student basis by the state.

** Additional money to equalize funding for "low-wealth" districts.

** Extra funds for instructional materials but no cost-of-living increase for so-called "basic aid" districts, primarily funded by local property taxes. These local districts are all "basic aid": the Las Lomitas, Menlo Park, Portola Valley and Woodside elementary districts and the Sequoia Union High School District.

"It's difficult to have a take on the governor's May revise until there's a full analysis of the details," said Superintendent Ken Ranella of the Menlo Park district.

Superintendents in San Mateo County met Friday morning, May 14, to talk about the revised budget scenario. Districts will receive more information this week when representatives attend budget workshops.

"My general impression is that funding for K-12 education is better than we thought six months ago, but not as good as what we believe it should be," said Superintendent Ranella.

The governor's education proposal is based on his agreement last December with a group of educational representatives that the schools would forgo $2 billion due them this coming year under Proposition 98, the constitutional guarantee that schools will receive 40 percent of state revenues, but this money would be restored later.

It appears that a substantial part of the categorical program funding, such as for instructional materials, would be restored, said Superintendent Ranella.

Tim Hanretty, business manager for both the Portola Valley and Woodside districts, said he sees "nothing negative" in the governor's latest proposal with respect to these two districts. "We might be getting more money for instructional materials and deferred maintenance funding," he said.

'Final say'

"Who knows how this is going to end up, because the Legislature has the final say," said De Modderman, business manager for the Las Lomitas Elementary School District.

Ms. Modderman said she probably won't have settled opinions on the governor's revised budget proposal until after a workshop on education funding analysis at the end of the week.

Districts like Las Lomitas -- with property tax revenues high enough to spend more on students than the state minimum -- may lose a little less in the revised budget, she said.

At the Sequoia Union High School District, Ed LaVigne, the assistant superintendent of administrative services, manages the district's finances. Mr. LaVigne said he hadn't read the text of the governor's latest proposal and wouldn't comment until getting back from a workshop at the end of the week.

School officials hope the budget will be approved by July 1. A late budget creates uncertainties for school districts, as it does for all state-funded agencies.

-- Marjorie Mader and David Boyce

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