Fix Proposition 2

Proposition 2, passed by voters last November, is intended to create a state-level budget reserve for the proverbial rainy day. In the process of preparing the ballot initiative, and in all the back and forth to secure support, the measure ended up doing exactly the opposite of what it is supposed to do. Instead of driving the creation of reserves in school districts, it limits them.

This Sacramento action to dictate how much to put aside and how much to spend from the budgets of local school districts goes against the theory of local control, which is the basis of the new formula that gives priority to schools most in need.

The Los Angeles Unified School District’s reserve funding, for example, would be capped at 3% while other smaller districts could reach ten percent.

This clause, negotiated behind the scenes, is the price paid to secure the California Teachers Association’s (CTA) support for Prop 2, which was an election priority of Governor Jerry Brown. CTA argued that many districts use their reserves as if they were savings accounts instead of spending taxpayers’ money on educational programs.

The CTA may have less altruistic motives, such as forcing the district to put money aside that can be used in negotiations for salary increases.

This clause is one of the few that can be changed in Sacramento without altering the basic integrity of Proposition 2. We believe it is right to modify it to really give the school districts their autonomy.

Moreover, school reserves helped many districts navigate the Great Recession. Imposing limits could affect their ability to do get through a future economic downturn.

The process articulated in Proposition 2 does not immediately impose the limit of reserves, but it alters the fundamental principle that it is local managers who should have control over their budgets rather than having the decisions imposed by Sacramento or an interest group.

The election has passed, Proposition 2 won, and it is now time the legislature to make necessary corrections and give true control to the local schools