Proposition 98: SCHOOL FUNDING PLAN : Public Employees Split With Teachers Over School Funds Measure

SACRAMENTO — Proposition 98, the teacher-backed school funding initiative, is drawing fire from some unlikely sources--public employee groups that in recent elections formed a powerful political coalition with teachers to support and oppose ballot measures.

As recently as the June election, when public employee groups unsuccessfully backed Proposition 71, an initiative aimed at raising the voter-approved limit on state spending, state employees and others with a stake in the state budget have almost uniformly stuck together in fending off initiative drives aimed at cutting state spending or reducing taxes.

Previously, they battled several measures by anti-tax crusaders Howard Jarvis and Paul Gann, and have worked together to pass various bond measures.

But that has changed with Proposition 98, which, if passed in the Nov. 8 election, would give public schools and community colleges about 40% of the state general fund budget, roughly the share they received two years ago. The measure would also guarantee school programs annual budget increases tied to the rate of inflation and require that future state surpluses be given to schools, rather than be rebated to taxpayers.

Proposition 98 is sponsored by the California Teachers Assn., with strong backing from state Supt. of Public Instruction Bill Honig, the state PTA and other school groups. Supporters expect to spend $4 million to pass it, including the cost of qualifying for the ballot.

Opponents so far have spent only a small fraction of that amount. The late-starting opposition campaign is only now beginning to get under way.

Jeff Thompson, lobbyist for the 18,000-member California Correctional Peace Officers Assn., said: “We expect to spend a significant amount to defeat it. This measure seems to be a permanent hand in the cookie jar for Bill Honig and the teachers unions. It’s a flat rip-off.”

John Scribner, a lobbyist with the 31,000-member Peace Officers Research Assn. of California, added, “We’ve supported teachers and education initiatives in the past, but the California Teachers Assn. is going for too much of the brass ring this time.”

Switched to Neutral Position

The California State Employees Assn., which represents about 130,000 state employees, once supported Proposition 98, but has switched its position to neutral.

Other key opponents include Gov. George Deukmejian, the California Taxpayers Assn., the League of California Cities, the state Chamber of Commerce, the California Assn. of Hospitals and Health Systems, and the California Tax Reduction Movement, the organization headed by the late Howard Jarvis.

Honig, who helped draft the measure, said schools put together their own initiative because the public does not appear to be willing to give “a blank check” to increase government spending for all programs.

“We fought the good fight with (other public employee groups) for everyone. Obviously the public wasn’t willing to do it for everyone. Voters have indicated they are willing to approve increased spending if they are certain it will go to schools. If that’s the way it is, so be it,” he said.

Concern Over Drop in Support

As for the argument that schools would be taking away from other government programs if Proposition 98 passes, Honig said the reason school interests drafted the measure in the first place was concern about the decline in financial support for public schools in relation to other state government programs.

“We’re not encroaching on them. They have been encroaching on us. We have been getting a reduced share of the state budget. All we are doing is trying to protect ourselves from further slides,” Honig said.

Teachers would be the biggest beneficiaries of the initiative since the lion’s share of school money goes to pay teacher salaries.

The legislative analyst’s office estimates that if the initiative passes, the governor and Legislature would have to transfer at least $215 million to public schools in the current year’s $44-billion state budget.

$445-Million Increase

The state Department of Education, in its own analysis, said the size of the increase should be $445 million.

The California Taxpayers Assn., a well-established research and lobbying group funded by major corporations, released a study this week estimating the bonanza for schools at $796 million.

The state Department of Finance does not argue with the higher figure. “It sounds like a reasonable estimate. We can’t dispute it,” said Lois Wallace, press aide to Deukmejian and spokeswoman for the Department of Finance.

Estimates vary so widely because the initiative would give public schools and community colleges the same share of the state budget they received during the 1986-87 fiscal year, about 40%. The problem is that since 1986-87, taxpayers received a $1.1-billion rebate, and there are arguments over whether that should be added to the budget base when determining how much extra schools would receive.

In the current budget, kindergarten through high school grades are set to receive about 36% of the $36.1-billion general fund.

Budget Already Set

Since the state budget is already set, opponents representing programs funded by the state fear that whatever the amount of money is it would be too much because it would have to come from other programs.

George Cate, a lobbyist for the California Medical Assn., said: “We’re not against giving more funding to education, but unfortunately the way this proposition is set up it would give more money to education at the expense of all other programs. We have some serious problems with health care in this state, and need more money to provide prenatal care for women in the Medi-Cal program and to shore up emergency and trauma care centers.”

Opponents representing corporations, such as Cal-Tax and the Chamber of Commerce, fear that the need to come up with extra money would lead to tax increases in the future.

Opposition Called Sour Grapes

Richard Ross, a Sacramento political consultant who is managing the “Yes on 98” campaign, calls the opposition sour grapes. He noted that corporate lobbyists successfully pushed through legislation giving large corporations with overseas operations a major tax break in 1986.

“Our competition is not between those who represent public employees, but special interests who were able to get a $300-million-a-year tax break for multinational corporations a few years ago when schools, hospitals and other government programs went begging,” Ross said.

Ross added, “The fact is that what we get in the initiative is a guarantee of the same share of the state budget that we got two years ago.”

Consultant Hired

The taxpayers’ association is organizing a “No on 98” campaign and has hired political consultant David Townsend to do polling and advise the budding campaign.

Opponents said they are hampered by the subject matter--an enormously complicated initiative proposal that requires a sophisticated understanding of the state budget process--and the strong support among Californians that schools need more money. In addition, they said, most political interest--and financial contributions--by corporations and businessmen this year is centering on the five insurance initiatives on the ballot.