A Primer on Prop 98 
by the California Department of 
Education

Gov. Arnold Schwarzenegger would like to eliminate the minimum level of funding for public schools guaranteed 
by Prop 98. Since 1988, 
Prop 98, a voter-approved 
amendment to California's Constitution has protected K–12 education from cuts.

"There are certain fundamental  things, I would just say, not over  my dead body." Gov. Arnold Schwarzenegger, 9/25/03, LA Times,   in response to a question of whether he would be  willing to delay Prop. 98 funds to balance the budget.

Points to Consider ::

  “Education is the key to every future success in our state. This Prop 98 funding will be restored as required by law and our agreement. Today, I am making that promise to our teachers and students.” Gov. Arnold Schwarzenegger

  Revenue has exceeded projections, resulting in an additional $2.9 billion in current (2004-05) budget year.  $1.1 billion of that is owed to education through provisions of Prop 98. 
$2.0 billion + 1.1 billion = Total 2004/2005 deferral: $3.1 billion

  Now the governor says that Prop 98 is part of the "monster that needs to be starved." Yet an analysis of state spending for the last six years shows that education spending has lagged behind both revenues and spending in other areas.

  “Proposition 98 would be subject to across-the-board reductions during times of budgetary shortfalls. This introduces considerable uncertainty in the education funding process.”

“Do the Governor’s Proposals Reduce Autopilot Budgeting? In our view, they do not. In fact, they make things worse at the time that policymakers need the most tools – during difficult budgetary years.”  Legislative Analyst’s Office; Proposition 98 Primer; 1/12/05

   This past January, a majority of voters polled disapproved of the Governors performance with regard to schools.  In the same survey, 62% of likely voters thought California should spend more money for K-12 schools.

Data provided by Full Circle Fund
   

Additional Information ::
K-12 Education Funding Myth.  Governor Schwarzenegger's claim  that K-12 education funding is increasing by seven percent is a myth. Written  by the California  Department of Education.	Battle Escalates Over Education Spending.  Analysis of competing TV  ads by the LA Times.   The  governor is attempting to shift attention away from dollars spent and toward other policy changes he is proposing, such as weakening the tenure  system for teachers.	What About the Lottery Money? The provisions guarantee that a minimum of 34% of total lottery receipts be distributed to public schools, colleges, and universities. The money is to supplement, not replace, support for education. Lottery proceeds add less than 2% to school district revenues.