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Governor reaches nearly $3 billion deal with teachers
| Wednesday, May 10 2006 7:15 PM
Last Updated: Wednesday, May 10 2006 7:15 PM
Gov. Arnold Schwarzenegger on Wednesday announced a plan to repay billions of dollars to schools that educators say he has owed them since he backed out of a budget deal he made shortly after taking office in 2003.
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The deal, reached as the governor finalized the annual May revisions to his proposed 2006-07 budget, calls for the state to repay $2.9 billion over seven years. Another $2.8 billion from an unexpected tax windfall this spring will also go to education.
The agreement is expected to settle a lawsuit brought by education groups and it may also quiet one of Schwarzenegger's most vociferous political enemies - the California Teachers Association - in a tough election year. The group spent $50 million in last year's special election to defeat the governor's initiatives.
Sandra Jackson, a CTA spokeswoman, called the deal good news but cautioned that it would not change the CTA's position come November. The union has endorsed State Treasurer and Democratic gubernatorial candidate Phil Angelides.
"The governor's refusal to repay the money that was owed to schools was a big problem for us and we had to keep that in the forefront. Now that he has proposed to repay that money in his May revision, we can now move on towards full funding for our schools," Jackson said.
The deal, however, raised red flags for budget watchdogs who said they worry the agreement could exacerbate future deficits.
Under the deal, the administration technically concedes the state underfunded education in 2004-05 by $1.7 billion and then recalculates what's owed to schools this year and next.
The deal marks the first time the governor's administration has agreed with the education lobby on how much the state owes since a meeting Schwarzenegger held with the education lobby in December 2003.
Educators said they agreed to accept $2 billion in cuts to help the newly elected governor balance the 2004-05 state budget. In return, the governor promised that schools would get more money if state revenues increased more than expected.
Assembly Speaker Fabian Nunez, D-Los Angeles, credited the governor for fully funding education but questioned the timing of the decision.
"He's making good on his promise but at the same time you have to look at the political implications," said Nunez, noting Schwarzenegger's re-election bid. "There's a concerted effort by the administration to soften the blow of his opposition."
"This is a way to reinvigorate his campaign for re-election."
State Superintendent of Public Instruction Jack O'Connell commended the governor for doing the right thing. He said he repeatedly criticized Schwarzenegger for failing to live up to his deal, and said so in meetings around the state.
"I was critical of the governor and I also said I would thank him when he lives up to his commitment to the students of California, so today I am publicly thanking the governor."
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Associated Press Writers Juliet Williams and Samantha Young in Sacramento contributed to this report.