Top Democrats attack Schwarzenegger, accuse him of breaking schools promise

By: TOM CHORNEAU - Associated Press | Friday, January 21, 2005 9:14 PM PST ∞

SACRAMENTO -- Siding with the state's powerful education lobby, four of the state's six Democratic statewide office holders attacked Gov. Arnold Schwarzenegger Friday for breaking his promise to fully fund schools.

Treasurer Phil Angelides, Controller Steve Westly and Lt. Gov. Cruz Bustamante -- each of which have gubernatorial aspirations -- joined Superintendent of Public Instruction Jack O'Connell to condemn the governor's $111.7 billion budget.

Schwarzenegger has proposed closing the $8.6 billion shortfall using more than $4 billion in loans and imposing strict spending limits. He would take about $2 billion from what educators claim they are owed under a voter-approved funding guarantee and shift another $500 million in annual costs for teacher pensions.

Using a school library in a working-class Sacramento neighborhood as the backdrop, the four Democrats took turns criticizing the administration's proposal that they believe would put California schools even further behind national averages.

"Gov. Schwarzenegger's budget hits California's children twice: first by loading California with new debt that our children will be forced to repay, then by cutting education," Angelides said. "The Governor's budget is both fiscally unbalanced and morally unbalanced."

H.D. Palmer, spokesman for the governor's Department of Finance, denied that Schwarzenegger has proposed a funding cut to schools.

Palmer said the governor's wants to provide an increase of $2.4 billion over last year's budget -- which translates into $362 more per pupil spending. He said the governor had to make tough choices to close the deficit but still was able to provide schools with a funding increase.

At issue is about $1.4 billion in unanticipated tax income collected last year that schools said they are entitled under the Proposition 98 funding guarantee. But because education officials agreed to suspend Proposition 98 for the 2004-2005 fiscal year, both the administration and the nonpartisan Legislative Analyst have said schools are not owed that money.

Resolution of the issue has significance on the budget deficit because it represents a $2 billion swing -- combining not only what is potentially owed schools as part of the 2004-05 budget but also in the upcoming 2005-06 budget.

The press conference was the fifth in a series that top Democrats have held statewide to drum up opposition to the governor's plan. At other stops, the other officials have been joined by Attorney General Bill Lockyer, another potential candidate for governor in 2006.

Political analysts said the school funding issue is a good one for Democrats who may want to take on the popular governor if Schwarzenegger decides to run for re-election next year.

"They are all ambitious and clearly they are all running," said Barbara O'Connor, director of the Institute for the Study of Politics and the Media at California State University, Sacramento. "The platform of competing vision is one that needs a full airing and it's a good one for the Democrats."

At stake is more than just next year's budget.

Schwarzenegger has said he wants to hold a special election this year to allow voters to consider a variety of measures. Included among them are initiatives that would change how legislative districts are drawn, a constitutional funding cap and a measure that would link teacher pay to merit rather than tenure.

The California Teachers Association, arguably one of the state's most influential political forces, has come out against both the governor's spending cap proposal and merit pay for teachers. Some insiders said they believe the CTA will spend as much as $20 million defeating the governor's ideas as well as rolling back his budget proposal.

Participants in Friday's events, however, focused their attention exclusively on the budget and the impact the governor's plans would have on schools.

"Gov. Schwarzenegger says that he listens to the people, but he is ignoring California voters who voted to protect funding for our public schools," said O'Connell, who is not expected to be a candidate for governor next year.

"California already ranks eighth from the bottom of all states in per-pupil funding, yet has some of the highest academic expectations, and the most challenging student population in the country," he said.

O'Connell said he was in the governor's office last year when Schwarzenegger told school officials that if they agreed to a $2 billion cut, he would support fully funding schools this year. "Simply put, the governor is breaking his promise," he said.