Language Needed for a Prop. 98 Suspension Bill

On occasion, the California Legislature and Governor decide to suspend the voter-approved minimum school funding guarantee, Prop. 98, when the state’s finances require it. Under Prop. 98, the state Constitution requires the state to apply a minimum amount of funding for each fiscal year for the support of school districts (K-12) and community college districts.

Prop. 98 does allow the Legislature to suspend this minimum funding obligation for one year by the enactment of an urgency statute. As a result, a bill that suspends Prop. 98 requires an affirmative act to suspend the constitutional minimum funding guarantee and specify what the funding amount will be for that fiscal year. And, the bill must declare that it is to take effect immediately as an urgency statute. This bill requires a 2/3 vote due to the urgency clause.

               The Digest Keys would be the following:

Vote: 2/3   Appropriation: no   Fiscal Committee: yes   Local Program: no

In the text of the bill, it would include the following language:

The Legislature finds and declares that the minimum funding obligation for school districts and community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution for the ___ fiscal year exceeds the state’s revenues available for this purpose for the ___ fiscal year.

The Legislature hereby invokes subdivision (h) of Section 8 of Article XVI of the California Constitution to suspend the minimum funding obligation for school districts and community college districts for the ___ fiscal year.

In lieu of the constitutional minimum funding obligation, the amount that will be applied by the state for the support of school districts and community college districts for the ___ fiscal year is $___

The amount of the maintenance factor created in the ___ fiscal year as a result of this section shall be calculated pursuant to subdivision (d) of Section 8 of Article XVI of the California Constitution and allocated pursuant to subdivision (e) of Section 8 of Article XVI of the California Constitution.

The first paragraph of this form language makes a legislative finding regarding state revenues and the minimum funding guarantee for K-14 education districts. The second paragraph suspends the minimum funding guarantee, which “may be suspended for one year by the enactment of an urgency statute pursuant to Section 8 of Article IV, provided that the urgency statute may not be made part of or included within any bill enacted pursuant to Section 12 of Article IV.”

The third paragraph specifies the amount of the appropriation for the particular fiscal year in which the minimum funding guarantee has been suspended. The fourth paragraph determines the maintenance factor funding allocation that is required by the state Constitution.