Davis Hints at Major School Cuts

Gov. Gray Davis said Tuesday that he will release a proposal by the end of the week to narrow the state’s projected budget shortfall with substantially more than the $5 billion in cuts he had earlier promised, and suggested that school spending could be cut.

After meeting with legislative leaders, the governor said he intends to offer the cuts as a partial solution to the anticipated $21-billion-plus budget gap, and he formally called the Legislature to the Capitol for a special session beginning Monday to address the shortfall.

Though Davis would not say specifically that he will propose to cut $1.9 billion from education as suggested by the nonpartisan legislative analyst’s office, he noted that the state spends nearly half its general fund on public schools.

“We have to solve this problem,” Davis said. “Education is a huge part of the budget. We have to find savings where we can find them.”

Legislators and lobbyists for public schools said they anticipate cuts; some said administration officials informed them privately to expect them.

“The administration clearly signaled to us that they intend to pursue the full $1.9 billion,” said Kevin Gordon, executive director of the California Assn. for School Business Officials. “We do not believe it is mathematically or physically possible to extract that kind of money out of schools in the middle of the year.”

Education lobbyists are mobilizing to resist a large reduction. “It would be devastating to our schools,” said Steve Hopcraft, spokesman for the California Federation of Teachers. “We are going to have at it.”

The legislative analyst’s office first said in a report last month that schools are receiving $1.9 billion more than the state must spend under the complex financing system established by the voter-approved Proposition 98 of 1988. The $1.9 billion represents about 6% of the roughly $31 billion that the state will spend on public schools and community colleges from the general fund in the 2002-03 budget.

Although rescinding that amount would help close the budget gap, Davis would be opening his second term by battling the powerful education lobby. He also would be presiding over education budget cuts after having touted education spending increases repeatedly during his first term, saying that schools are his “first, second and third” priorities.

Hopcraft said a $1.9-billion cut would hit the schools hard. A reduction of that amount could be attained by laying off 35,000 teachers or by closing every public school for two weeks, he said. School groups will launch their public campaign against the cuts with a news conference Thursday.

Legislators are bracing for the battle.

Assembly Education Committee Chairwoman Jackie Goldberg (D-Los Angeles) said it’s possible that Assembly Democrats would balk at such cuts. But she predicted that lawmakers will end up approving them.

“I think it is a terrible idea -- but I think it is going to happen,” Goldberg said. “Can you cut things and not include education when you’ve got $20 billion to cut? The answer is no.”

Goldberg, a former Los Angeles Unified School District board member, said she expects that schools can shave spending this year by cutting staff training and textbook purchases, adding: “You have less well-trained staff and fewer books per kid, but you can survive.” But given the state’s education funding system, the reduction would have a ripple effect next year, she said.

“In the second year,” Goldberg said, “you will see something dramatic.”

Senate Republican Leader Jim Brulte of Rancho Cucamonga said some Republicans will vote for the cuts “if the governor proposes that.”

Assembly leaders were more skeptical.

“I don’t think Assembly Democrats are going to agree to do anything until we know what the entire package is,” said Assembly Speaker Herb Wesson (D-Culver City). Assembly Republican Leader Dave Cox of Fair Oaks said lawmakers will have a difficult time reducing the current school budget by $1.9 billion because “a significant portion already has been spent.”

Legislative leaders attending the closed-door meeting Tuesday described the talks as cordial. Davis offered no specifics on the cuts and said he will unveil reductions Friday.