Description: The budget proposes to leave 2004-05 Proposition 98 appropriations at roughly the level provided in the 2004-05 Budget Act. This proposal would create $2.3 billion in General Fund savings over the two years. While the Governor’s 2005-06 spending plan for K-14 grows by $2.9 billion, it does not include funding to cover all K-14 operating expenses that districts would incur under the budget proposal. We recommend the Legislature build a base budget for 2005-06 that fully funds the current K-14 education program.