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LEGISLATIVE ALERT
April 15, 2009

California State PTA takes positions
on May 19 statewide ballot measures
PROPOSITION 1A - SUPPORT
Restores education funding, temporarily increases state revenues, and establishes a "rainy day" stabilization fund
 
PROPOSITION 1B - SUPPORT
Education funding repayment plan
 
PROPOSITION 1C - SUPPORT
Modernization of the Lottery
 
PROPOSITION 1D - OPPOSE
First 5/Children's Services Funding
 
PROPOSITION 1E - SUPPORT
Mental health services funding
 
PROPOSITION 1F - NO POSITION
Legislative pay increases


Based on the authority contained in our statewide resolutions and position statements, the California State PTA, representing nearly 1 million volunteer members, has taken positions on five of the six measures that will appear on the May 19 statewide ballot. 
 
Each of these measures is intended to implement components of the state budget agreement adopted by the Legislature and signed by the Governor in late February.
 
While we do not feel these measures adequately address the need for long-term budget reform in California, we recognize that most of the measures represent important and necessary steps to prevent deeper cuts to education and children's programs during the state's current economic crisis.
 
The California State PTA's positions are as follows:

PROPOSITION 1A - SUPPORT
Restores education funding, temporarily increases state revenues, and establishes a "rainy day" stabilization fund.
 
The California State PTA supports Proposition 1A. We have been urging lawmakers to support education funding and increase revenues as part of a balanced approach to weathering the state's current budget crisis.
 
Proposition 1A would pay back $9.3 billion to K-12 schools and community colleges that were recently cut from the budget, if Proposition 1B is also approved.
 
In addition, Proposition 1A would ensure that temporary tax revenues amounting to an estimated $16 billion between 2010-11 and 2012-13 will not be cut short during this time when they are most needed to prevent deeper cuts to critical services.
 
Proposition 1A further provides the Governor with some limited authority to make midyear budget cuts, and it establishes a "rainy day" fund aimed at smoothing out state spending over time. Revenues generally available to be spent each year would be based on revenue trends from the previous 10 years. This measure would not, however, cap the total level of spending that could be authorized in any given year if alternative revenues were approved by the Legislature and Governor.
 
 
PROPOSITION 1B - SUPPORT
Education funding repayment plan
 
The California State PTA supports Proposition 1B.  We believe adequate funding must be provided for public education so that every student can receive a quality education. Budget cuts to education threaten an entire generation of children - and that seriously threatens California's economic future.
 
Proposition 1B would require the state to make annual supplemental payments totaling $9.3 billion to schools and community colleges to make up for recent budget cuts. Funding for this measure is contingent on the passage of Proposition 1A.
 
Historically, there has been a budget mechanism within Proposition 98 called the "maintenance factor" that created a future repayment obligation when funding for education was cut. This year, the state's economic crisis created a circumstance that led some policymakers to assert that the requirement to restore these cuts to education in future years would not apply.
 
Proposition 1B asks voters to guarantee that these cuts to education in these difficult times will be restored in the near future when the budget stabilizes. These payments would replace any payments that the state would otherwise be required to make under current law for maintenance factor obligations in 2007-08 and 2008-09.
 
If both Propositions 1A and 1B pass, payments would begin in 2011-12 and extend for five or six years. Payments would be included in the Proposition 98 minimum funding base.
 
PROPOSITION 1C - SUPPORT
Modernization of the Lottery
 
The California State PTA supports Proposition 1C because it generates additional revenues to mitigate the current budget deficit. In addition, it will permanently disconnect school funding from the lottery, thereby dispelling common misperceptions that schools receive a large share of funding from the lottery.
 
Proposition 1C authorizes the selling of bonds from the State Lottery, enabling the state to borrow $5 billion in the current fiscal year and $5 billion next year to help pay down the budget deficit California now faces. 
 
Currently, profits from the lottery (after prizes and expenses are paid) are distributed to school districts for purchase of instructional materials. Under this measure, public schools would no longer receive any funding directly from the lottery. Instead, the state General Fund would pick up the current share of lottery funds allocated to schools.
 
Funding for schools through the lottery for 2007-2008 was approximately $1.1 billion.  Under Proposition 1C, that amount would be allocated to schools from the General Fund in future years.
 
      
PROPOSITION 1D - OPPOSE
First 5/Children's Services Funding
 
The California State PTA opposes Proposition 1D because it would negatively impact key children's services that we support - programs such as early childhood education, health care access, education for new parents, and support for families in crisis. While we understand the need for options that help mitigate the state's current budget deficit, Proposition 1D takes funds away from important First 5 programs for a total of five years. It also makes changes to how First 5 funding may be spent, changes that are unrelated to addressing the state's current budget crisis. 
 
Proposition 1D would allow for the redirection of some Proposition 10 funds for a five-year period.
 
Proposition 10, enacted by voters in 1998, created the California Children and Families (First 5) Program to expand early development programs for children up to age 5. The California State PTA strongly supported Proposition 10.
 
Under Proposition 1D, up to $608 million in 2009-10 and $268 million annually between 2010-11 through 2013-14 would be redirected from early childhood development programs established by Proposition 10, and used to fund other state health and human services programs for children up to age 5.

 
PROPOSITION 1E - SUPPORT
Mental health services funding
 
Proposition 1E would allow for the redirection of some Proposition 63 funds for a two-year period. 
 
Proposition 63, enacted by voters in 2004, provides state funding for new and expanded mental health programs through a personal income surcharge of 1 percent on taxpayers' income above $1 million. 
 
The Department of Finance estimates that Proposition 63 will generate a total of $887 million in 2009-10.  Proposition 1E would redirect $226.7 million in 2009-10 and a similar amount in 2010-11 from Proposition 63.  The redirected funds would be used to pay for "The Early and Periodic Screening, Diagnosis and Treatment Program" (EPSDT), therefore freeing up General Fund monies for other purposes.  EPSDT is a federally mandated program that must be funded, with or without this measure.
 
California State PTA strongly supported Proposition 63, and we continue to advocate for adequate mental health services for children, youth and families, as we know these services are critically important in our communities. However, we support Proposition 1E because we also understand the need for options that help mitigate the state's current budget deficit. In this case, the redirection of Proposition funds from Proposition 63 is limited to only two years. In addition, the author of Proposition 63, Sen. Darrell Steinberg, has strongly endorsed this measure as a viable short-term option.
 
PROPOSITION 1F - NO POSITION
Legislative pay increases
 
Proposition 1F would prohibit legislators and the Governor from receiving pay increases in years when the state budget is running a deficit.
 
California State PTA's resolutions and positions do not provide sufficient authority for a position to be taken on this measure.


More detailed information about these measures will be provided soon.

USEFUL LINKS

California Secretary of State Official Voter Guide Information
 Legislative Analyst's Office analyses of ballot propositions
League of Women Voters:  Easy Voter Guide
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