In California’s 2024-25 budget compromise, the states schools and community colleges won’t have to suffer the kinds of cuts that other departments will confront. In fact, the K-12 budget will include some expansions in education.

That’s the good news.

The bad news, however, is that, as valuable as education is,  the state simply can’t afford it out of operating income according to a June 24th article in EdSource.

In fact, the budget relies on fiscal maneuvers that are frowned upon by organizations like the Government Finance Officers Association and the  Volcker Alliance. According to EdSource for example, there will be a “$6 billion debt that won’t be fully repaid to the state treasury for a dozen years.” Other fiscal gimmicks have also helped to put off school fiscal troubles to future years, while the budget also drains away “most of the $8.4 billion education rainy day fund.” 

This kind of use of rainy-day funds is considered by many to be bad budgeting policy. A Pew Charitable Trusts brief that came out in early June was clear about the topic, maintaining that “rainy day funds are not well suited for helping states close shortfalls caused by structural imbalances in which ongoing spending chronically exceeds ongoing revenue.”

Yet another issue is raised by the decision to lower the minimum amount of money guaranteed to schools yet fill their coffers through money borrowed from the general fund. 

According to CalMatters, “The California Teachers Association, California School Boards Association and other education advocates say the maneuver will protect funding this year but could lower it dramatically in future years.”

This is kind of a no-win proposition for the Governor and legislature. As Rob Manwaring, senior advisor with Children Now, was quoted as writing in EdSource, “While the final budget is perhaps the best schools could anticipate given the budget challenges (the actions) will result in increased school funding volatility and uncertainty until they are paid back.”

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