August 28, 2008
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Coalition of California school districts sues state over finances


A coalition of California school districts has filed suit against the state, saying lawmakers have used schools like a credit card for years by charging up a $1 billion debt that is long overdue. The suit, joined by the California School Boards Association, claims state officials have failed to uphold their end of a constitutional requirement: If elected officials pass a law that requires funding, the state has to pay the tab. There are 38 laws on the books that will cost schools an estimated $160 million in staff time or resources, said Richard Hamilton, director of the school board association's Education Legal Alliance. That includes costs associated with administering the High School Exit Exam, keeping immunization records, creating school safety plans, and running habitual truant programs, among others. In 1979, voters passed Proposition 4, which required Sacramento to pay for its legislative mandates. In recent years, the state has budgeted a token $1,000 for the school-related laws—falling well short of actual costs. State officials call the unpaid amount their "credit card debt." Last year, the legislature appropriated $900 million to help pay off the backlog, but it wasn't enough, Mr. Hamilton said. Even after that payment, the state still owed schools $889 million, including interest, plus this year's current bill of $160 million. Because of a projected $10 billion state budget deficit this year, it's unlikely the schools will see the money any time soon unless a court requires it. "There's no doubt that school districts are owed reimbursement for mandates," said Steve Maviglio, spokesman for California Assembly Speaker Fabian Núñez. "Unfortunately, the overall budget situation has forced us to defer mandate payments for schools and everyone else." The lawsuit is the latest in a string of legal challenges filed by education officials and advocates seeking back pay owed to the state's schools. Last year, Gov. Arnold Schwarzenegger settled a lawsuit over money owed under Proposition 98's minimum funding guarantee, resulting in a $3 billion boost for the education budget this year.

San Francisco Chronicle By Jill Tucker

[Editor’s Note: The legal complaint in the case is below, as is information on the settlement of the Proposition 98 lawsuit.]
Legal complaint in Calif. Sch. Bds. Ass’n Educ. Legal Alliance v. Calif.
NSBA School Law pages on settlement of Proposition 98 suit