2009-10 Budget Analysis Series: Proposition 98 Education Programs

Balancing the 2009–10 Budget

To help address the state’s $40 billion budget shortfall, the Governor’s plan provides $8 billion (roughly $5 billion in 2008–09 and $3 billion in 2009–10) in solutions from K–14 education. (In addition, the Governor makes $1.7 billion in other Proposition 98 adjustments for 2008–09.) As we discussed in our January report, Overview of the Governor’s Budget, we encourage the Legislature to reduce Proposition 98 spending as much as possible in the current year. This report focuses on building the budget–year Proposition 98 plan. For the budget year, we identify almost $6 billion in potential K–14 reductions—roughly double that identified by the Governor for 2009–10. We identify more budget–year savings given (1) a current–year package adopted by the Legislature could achieve less savings than the Governor assumes and (2) the size of the total budget problem could grow. Below, we lay out a three–tiered approach toward identifying K–14 cuts.

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