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District leaders warn governor’s budget could deepen school funding gap even if taxes pass
Summary
Deputy Superintendent Lee briefed the board on the governor’s proposed 2012–13 state budget, describing a $9.2 billion gap, proposed cuts, and a plan to use most new education revenue to pay down deferrals rather than raise districts’ ongoing per-student funding; staff warned SFUSD faces millions in potential reductions if taxes fail.
Deputy Superintendent Lee gave a detailed briefing on the governor’s proposed budget for fiscal year 2012–13 and explained how the administration’s approach could affect local school funding.
Lee said the governor proposed solutions that include $4.2 billion in spending reductions and a set of temporary tax increases to place on the November 2012 ballot, which together would raise about $6.9 billion. He stressed the result: "Even if the taxes pass, our projected deficit grows and the deficit factor grows," meaning districts would still be paid substantially less than statutory COLA would require. The district’s early estimate: a fully funded COLA would provide roughly $75 million more to the district next year than the governor’s optimistic scenario.
Lee and staff further explained the administration’s plan would use much of any Prop 98 increase to ‘‘buy down’’ deferrals (delayed state payments to districts) rather than increase ongoing revenue limits for school districts. Lee said the administration’s proposal to pay down a portion of deferrals is “mistimed” for districts because it does not create new recurring revenue and would leave many district obligations unchanged.
The presentation also flagged specific risks in the governor’s proposal: zero funding for transportation (an estimated loss of about $7 million for SFUSD), no statutory cost-of-living adjustment (COLA) funding (estimated 3.17% COLA), and continued use of intra-year deferrals that strain district cash flow. Lee outlined two scenarios: if the taxes pass the state would pay down some deferrals but still leave a significant deficit factor; if taxes fail, a further Prop 98 reduction could cost SFUSD about $19 million annually (cited as approximately $370 per ADA).
Board members asked for simple talking points the district can use with parents and the public and discussed options for local advocacy. Commissioners also raised concerns about redistribution proposals such as a weighted pupil formula and about whether redevelopment dissolution savings were counted into the governor’s assumptions.
What’s next: District staff said they will hold community workshops, develop straightforward talking points about deferrals and COLA, and continue advocacy with Sacramento and local partners as the budget and any ballot initiatives move through the spring and into the May revision period.
