2008 Woodie Awards
Propostions affect community colleges
Kevin Kelley
Issue date: 2/27/04 Section: News
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Arnold Schwarzenegger's attempts to repair the state budget now hinge on passage of Propositions 57 and 58 on the ballot for March 2. The ballot measures may have shaky support from voters, according to the latest surveys, but the shadow of imminent economic breakdown has helped the Governor to rally bipartisan support for 57 and 58.
In his budget proposal on January 9, Schwarzenegger said failure to pass these measures would necessitate drastic cuts and be "disastrous" for the state.
Proposition 57, the Economic Recovery Bond Act, would establish a $15 billion bond to pay off the deficit when payments come due in June. This bond would replace a $10.7 billion bond created last year, which is facing legal challenges because it did not require a popular vote.
Proposition 58, the California Balanced Budget Act, would amend the State Constitution to require the Governor and the Legislature to enact a balanced budget proposal each year, create a reserve fund to smooth spending and prohibit long-term borrowing to pay off debt.
If either measure fails, neither will go into effect.
A Legislative Analyst's Office's report said that, on the whole, the Economic Recovery Bond would show immediate benefits to the state in savings this year, but after the one-time savings the annual payments on the bond would add up to create a $7 billion budget deficit in 2005-2006, leaving $5 billion in debt through 2008-2009.
"This shortfall would occur even if all of the savings and other solution assumptions in the Governor's plan were fully realized," the report stated.
However, if the propositions are not passed, the report said, a $5 billion shortfall will result, increasing to $13.6 billion if last year's bond is ruled unconstitutional.
A State Budget Update from the Community College League of California reported, "Community colleges receive about 3.2 percent of state general funds (excluding property taxes). Therefore, the community college 'share' of $5 billion is $160 million; the 'share' of $13.6 billion is $435.2 million. If the Legislature were to consider the property taxes and student fees received by community colleges, the 'share' would double."
In his budget proposal on January 9, Schwarzenegger said failure to pass these measures would necessitate drastic cuts and be "disastrous" for the state.
Proposition 57, the Economic Recovery Bond Act, would establish a $15 billion bond to pay off the deficit when payments come due in June. This bond would replace a $10.7 billion bond created last year, which is facing legal challenges because it did not require a popular vote.
Proposition 58, the California Balanced Budget Act, would amend the State Constitution to require the Governor and the Legislature to enact a balanced budget proposal each year, create a reserve fund to smooth spending and prohibit long-term borrowing to pay off debt.
If either measure fails, neither will go into effect.
A Legislative Analyst's Office's report said that, on the whole, the Economic Recovery Bond would show immediate benefits to the state in savings this year, but after the one-time savings the annual payments on the bond would add up to create a $7 billion budget deficit in 2005-2006, leaving $5 billion in debt through 2008-2009.
"This shortfall would occur even if all of the savings and other solution assumptions in the Governor's plan were fully realized," the report stated.
However, if the propositions are not passed, the report said, a $5 billion shortfall will result, increasing to $13.6 billion if last year's bond is ruled unconstitutional.
A State Budget Update from the Community College League of California reported, "Community colleges receive about 3.2 percent of state general funds (excluding property taxes). Therefore, the community college 'share' of $5 billion is $160 million; the 'share' of $13.6 billion is $435.2 million. If the Legislature were to consider the property taxes and student fees received by community colleges, the 'share' would double."
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