The California School Boards Association recently filed a lawsuit against the Newsom administration over a provision in the state budget that they claim is unconstitutional. This provision in the Education Code would potentially deny schools money they are entitled to in future years, setting a dangerous precedent according to CSBA. The lawsuit aims to invalidate this section of the education budget bill, arguing that it violates Proposition 98, which determines the allocation of funds to schools and community colleges from the General Fund.
The Department of Finance included this controversial wording in the budget trailer bill without any discussion or notice during the final days of the legislative session in June. CSBA President Albert Gonzalez emphasized the importance of defending Proposition 98, which was approved by voters, and ensuring that the state follows the governing Constitution.
The lawsuit does not impact the current year’s budget, which went into effect on July 1st. However, the concerns raised by CSBA stem from the challenges faced in drafting the 2023-24 budget due to delays in tax collection deadlines. Governor Newsom and the Legislature made estimates for the Prop 98 minimum guarantee for 2022-23, resulting in an overappropriation of $8.8 billion. While Newsom initially proposed excluding this amount from future calculations, opposition from education groups led to a different approach.
Despite abandoning the idea of lowering the minimum guarantee, Newsom’s administration inserted language in the trailer bill to limit funding vulnerability in case of future tax filing delays. This provision has been criticized by CSBA for artificially lowering the baseline for future school funding. The lawsuit argues that such manipulation of funding goes against the stability and predictability that Proposition 98 was intended to provide.
The integrity of Proposition 98, aimed at ensuring adequate funding for schools and community colleges, is at the center of this legal battle. CSBA contends that only voters, not the Legislature, have the authority to amend the provisions of Proposition 98. While tax filing delays like those experienced in 2022 are expected to be rare, CSBA emphasizes the importance of upholding the principles of stable and predictable school funding.
