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Senate committee advances constitutional amendment to create education equalization reserve
Summary
The Senate Committee on Elections and Constitutional Amendments advanced SCA 5, a measure to establish an Equalization Reserve Account to reduce per‑pupil funding disparities; the author said only interest on invested principal would be distributed to underfunded districts and the legislature would set distribution rules.
Chair Wiener convened the Senate Committee on Elections and Constitutional Amendments and Senator Cortese introduced SCA 5, called the Equalization Reserve Act, as a constitutional tool to address persistent per‑pupil funding disparities between basic aid and non‑basic aid districts.
“SCA 5 creates the equalization reserve account to address that disparity in a fiscally responsible, stable method over time,” Senator Cortese said, describing the account as an endowment‑style fund invested in the state investment pool whose interest would be distributed for equalization purposes.
Lisa Andrew of the Silicon Valley Education Foundation, a witness listed by the author, testified that funding differences drive unequal student experiences across nearby districts and cited research showing multi‑year per‑pupil investments can produce measurable gains in reading and math. Jordan, identified in testimony as superintendent of the Milpitas Unified School District, described staff and class‑size differences with neighboring districts and said pay differentials push teachers to other districts.
Eric Primack of the Charter Schools Development Center testified in opposition, arguing the measure "explicitly discriminates against charter schools" because, as written, funds would flow to districts and charter schools would not automatically share in ERA distributions. Primack warned that exclusionary language could invite litigation under state and federal equal‑protection standards.
Cortese responded that the amendment establishes a reserve account only and does not change existing funding formulas or Prop 98. He told the committee the State Treasurer would hold invested principal and that, "only the interest will be used for equalization purposes," while appropriation and distribution mechanisms would be left to the legislature in subsequent budget acts.
With a quorum established, Senator Choi moved to adopt SCA 5 and refer it to the Committee on Appropriations. The committee placed the item on call and later recorded and lifted the roll; the measure was advanced for further consideration.
What happens next: SCA 5 was adopted by the committee for referral to the Appropriations Committee; the legislature would retain authority to determine specific appropriation and distribution rules if the constitutional amendment moves forward.
