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March 5, 2010
Race To The Top: Over For CA, For Now
The Capitol Update has been following Race to the Top for months now, and finally the results are in. California did not make the cut for Race to the Top federal funding, despite several education reform bills passed in a special session late last year. The Obama Administration chose 16 other states to advance in the competition for a chance at a cut of $4.35 billion Race to the Top funds. Originally Governor Schwarzenegger estimated that California could receive up to $700 million for education if our state won. However other states were more competitive and California fell short. The Governor will push to qualify California again for a second round of funding by the June 1st deadline.
More Budget Business
The controversial “gas-tax swap” has been passed along party lines and is on its way to the Governor. Instead of a six percent sales tax on gasoline as proposed by the Governor, Democrats dropped the sales tax to “swap” it with a 17.3 cent per gallon excise tax. Excise taxes can be adjusted in the future to mimic results from a sales tax, but the difference is the sales tax would fluctuate with gas prices as a percentage and the excise is a flat-tax that could potentially cost citizens more at the pumps. The swap by the Democrats also avoids the need for tax increases to pass by a two-thirds majority. This sneaky legislative move by the Democrats also excludes the Governor’s proposal to lower the state’s constitutional commitment to Prop 98 education funding by $800 million. While Democrats argue this sleight of hand will help fill the budget gap by $1.1 billion dollars, Republicans are not as optimistic.
Education Cuts Cause Tension
Yesterday was the “Day of Action” for those protesting budget cuts to public education and fee hikes by UC and CSU schools. Students participated in walkouts and protests on campuses across California. Little did they realize that as they were protesting, California failed to qualify for millions in Race to the Top funding. As reported previously in the Capitol Update, UC and CSU students face a 32% fee increase due to lack of state funding for our university system. The budget for our public universities cannot be cut any further; it is currently at the minimum level at which we continue to receive federal funds. Similarly, the Governor seeks to lower the constitutional minimum for K-12 funding as previously set by Prop 98. However the budget addresses education, your CFRW Advocate will be monitoring it closely.
Crafty Cuts?
Democrats in our state government yet again show us how deceptive they can be. Last week they passed ABX8 2, a “spending reduction” bill. But which spending do they plan to reduce? Democrats don’t know yet… The bill contains unallocated cuts to the 2010-2011 budget, that does not in fact as yet exist. The Republicans are calling it an “intent” bill, in which the Legislature intends to reduce spending by $2.2 billion dollars by only assuming where the cuts might be made. The Democrats do not want to take action until May, when the Governor has to revise his original budget proposal, before they consider specific cuts in spending.
Tracking Legislation
Although we are unable to give our members access to our web-based bill tracking service, there is a way you can find and monitor California legislation. You can access that information on the internet by going to the Legislature Home Page and completing the information on the right side by either indicating the bill number, the author, or key words. You can then subscribe to an email update and you will be notified when there is action on legislation of interest to you
Disclaimer: The Capitol Update is an activity of the CFRW Advocate's Office. The update is for information only. CFRW official positions on legislation are stated immediately preceding the stated legislation or immediately following the stated legislation in this report.
California Federation of Republican Women
Mariann Hedstrom, President
Palm Desert, Indian Wells,
Bermuda Dunes, Thousand Palms,
La Quinta, Rancho Mirage, Indio and Coachella.