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spacer spacer spacer Home  ::  Budget and Funding :: Frequently Asked Questions :: FAQ: Spending increases and fiscal crisis spacer spacer spacer
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Did education spending increases contribute to the budget crisis?
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Official budget documents show that the state’s contributions to K-14 education funding have not kept pace with overall increases in revenues and expenditures over the last decade.

Comparing the expenditure recommendations included in the governor’s proposed 2008-09 budget to the state’s spending plan in 1998-99 illustrates the point. As reported by the Legislative Analyst’s Office that year, the state allocated $35.2 billion to Proposition 98 expenditures for K-14 education compared to $22 billion for non-Proposition 98 expenditures.

The 2008-09 budget proposal—reflecting the governor’s recommendation to suspend Proposition 98—would provide $55.6 billion to education, a 58% increase from funding a decade ago. If Proposition 98 is not suspended, and education is funded at $59.6 billion, it would represent a 69% increase. The non-Proposition 98 expenditures, on the other hand, grow to $45.4 billion in the proposed budget, a 106.3% increase from their 1998-99 levels.

During the same time period, total revenues for the state have increased 80.5%. That reflects the total in the 2008-09 budget of $102.9 billion compared to a 1998-99 budget total of $57 billion. So while K-14 education remains the single largest allocation in the state budget, its share of total state revenues has effectively decreased over this time period.

Data are from the Legislative Analyst’s Office “State Spending Plan Report for 1998-99,” October 1998; and “Overview of the Governor’s Budget,” January 2008. Both are available at www.lao.ca.gov.
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