So Cal education, LAUSD, the Cal States and the UCs

Prop 30 passed - so now where's the money?

Gov. Jerry Brown

Sharon McNary/KPCC

California Gov. Jerry Brown speaks in support of Prop. 30 at a rally of UCLA students on campus, Oct. 16, 2012

California’s voters avoided massive cuts to public education that would have gone into effect in January by approving Proposition 30, Governor Jerry Brown’s tax measure. Now the question is: when will the money show up?

The short answer is the income tax revenue on anyone who earns more than a $250 thousand dollars a year, plus the additional quarter-cent sales tax, will have a ripple effect on the different systems of public education.

For K-12 schools, not much may change in the short term because most districts assembled their budgets assuming that Prop 30 would pass.

But State Superintendent Tom Torlakson said the ability to maintain the status quo will stem “the chaos of waves of pink slips, of disruption, just demoralization of the teaching work force.” 

A billion dollars in state funding would have disappeared from the budget as early of December, he said.

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Credit rating for California school districts could be downgraded if Props 30 & 38 fail

Prop 30 and 38

David McNew/Getty Images

The fate of pro-education Propositions 30 and 38 will be decided by voters on Nov. 6.

Public support for Propositions 30 and 38 is plummeting despite expansive, and expensive,  campaign efforts across the state by their respective champions: Governor Jerry Brown and attorney and millionaire-ess Molly Munger.

Critics have accused Brown and Munger of using scare tactics about the imminent collapse of the public education system to elicit more “Yes” votes for the tax initiatives intended to shore up funds for education. 

But Moody’s Investors Service says the forecast for California school districts is dire, and many are at risk of having their credit rating downgraded if both ballot measures fail.

The projections in the report, "California School Districts Face Mounting Credit Pressure If Tax Initiative Fails in November Election," are bleak:

“As many as 150 of the 327 California school districts it rates to face some degree of fiscal pressure if both propositions are defeated. The weakest of these are likely candidates that Moody's would place on review for downgrade following the election.”

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