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February 24, 2005 - The Governor proposes shifting $469 million in General Fund teacher retirement costs to school districts and/or schools. Due to current law requirements, it is likely that the proposal would require a $469 million upward “rebenching” of Proposition 98’s minimum guarantee—nullifying the proposed General Fund savings. In addition, from a long-term perspective, the proposal on its own would not address the retirement system’s shortcomings—the lack of local control and responsibility.
February 24, 2005 - We describe the fee increased proposed for the state's public universities in the Governor's 2005-06 budget. We raise concerns with how revenue from these fee increases would be treated in the proposed budget. We also recommend that the Legislature adopt a fee policy that pegs the fees students pay to a fixed share of their educational costs.
February 24, 2005 - We describe the state's marginal cost methodology, which is used to calculate the funding required to pay for each additional student that attends the state's public universities. We also recommend that the Legislature revisit the marginal cost formula to better reflect actual costs.
February 24, 2005 - In spring 2004 the Governor developed a "compact" with the University of California and the California State University that specifies funding targets through 2010-11. We describe the compact and its fiscal implications. We also recommend that the Legislature disregard the compact and instead continue to use the annual budget process as a mechanism to fund its priorities and to hold the segments accountable for fulfilling the mission assigned to them by the Master Plan for Higher Education.
February 22, 2005 - Presented to the Assembly Higher Education Committee on February 22, 2005.
February 16, 2005 - Chapter 892, Statutes of 2001, (SB 740, O’Connell), directed our office to extend our contract with the RAND Corporation to include an assessment of the state’s process for funding nonclassroom-based charter schools. RAND found that the state’s funding determination process had reduced nonclass-room-based charter schools’ possible misuse of funds. The process also resulted in non-classroom-based schools increasing spending on instruction and teacher compensation. It did not, however, result in an increase in students’ exposure to teachers. Compared to the state’s existing “threshold” funding approach, RAND suggests the state use a more holistic funding determination process that still could detect possible financial wrong-doing without triggering automatic funding cuts for schools that might have reasonable justifications for their different expenditure patterns. Report Summary
February 9, 2005 - Presented to a joint hearing of the Senate Budget and Fiscal Review Subcommittees No. 1 and No. 3 on February 9, 2005.
February 8, 2005 - Proposition 98 is a complex formula for setting a minimum annual funding level for K-12 schools and community colleges. This primer is intended to assist the Legislature in understanding the basic "mechanics" of the proposition and showing how it has affected school spending since its passage in 1988. We also describe the Governor's proposed changes to Proposition 98 and discuss our concerns about how they would diminish legislative budget authority.
February 7, 2005 - Presented to the Senate Rules Committee on February 2, 2005.
February 2, 2005 - Presented to the Senate Rules Committee on February 2, 2005.
September 21, 2004 - This report examines various options for funding higher education enrollment at different rates depending on type of instruction, class level, and other factors.
August 23, 2004 - Presented to Conference Committee on August 23, 2004.