What's New

January 31, 2008
FOR IMMEDIATE RELEASE
STATE BUDGET CUTS AND THE MIDDLE AND HIGH SCHOOL SUPPLEMENTARY COUNSELING PROGRAM (MHSSCP)

As you all know, Governor Schwarzenegger has released his proposal budget for 2008-09. As he foreshadowed in his State-of-the-State Address, the budget proposal relies overwhelmingly on expenditure reductions to close a projected $14.5 billion budget shortfall. CASC has received numerous questions from members on what this means for school counselors and how the proposed reductions affect the Middle and High School Supplementary Counseling Program (more commonly known as AB 1802.)

Through our lobbyist in Sacramento, CASC has maintained a strong voice for counselors; most recently speaking before the Senate Budget Committee stating why MHSSCP program funds should not be reduced. However, school counselors are in no different place than any other State-funded institution in California . We were not singled out and the mention of school counselors in the Governor's address confirms his support for school counseling. While there are no guarantees when it comes to political affairs, CASC does not believe the MHSSCP money will go away. We will continue to fight on your behalf and do everything we can to ensure stability of the program. The following information details what we know to date regarding the proposed budget changes and their effect on the MHSSCP:

The proposed expenditure reductions to close the projected $14.5 billion budget shortfall would be accomplished in part by providing no cost-of-living adjustment (COLA) for 2008-09. The projected COLA for 2008-09 is 4.94%. Not providing a COLA saves the state $2.4 billion and thus represents a little more than half the proposed "budget-balancing reductions". The balance of the reductions are then accomplished by across-the-board cuts to the state general fund portion of program funding.

Current Year Cuts

For K-14 Education, the Governor proposes to reduce current year spending (2007-08) by $400 million, not the $1.4 billion his Administration projects Proposition 98 was "over appropriated." The Administration's hope is to recover those funds from program savings and not impact schools directly.

2008-09 Budget

For school district revenue limits, the "no COLA" proposal represents an even larger share of the cut, because much of revenue limit funding comes from local property taxes, which are not subject to the across-the-board cuts. Thus the Governor's proposal is that revenue limits would not receive the projected cost-of-living adjustment of 4.94% and would then be reduced by 2% from the 2007-08 level. As in the past, this would create a "deficit" factor. The projected deficit factor is 6.99%.

All other K-12 education programs, including the Middle and High School Supplemental Counseling Program ("AB 1802"), would also receive no COLA. However, these other programs are typically supported only by the state general fund, which means the entire program is subject to the 10.89% reduction. After counting 4.94% for the "no COLA", these programs are proposed to have reductions from current year funding of about 6%. These cuts are proposed to apply to virtually all categorical education programs, including state funded special education, the MHSSCP, school transportation, instructional materials, K-3 class size reduction, and others.

For the MHSSCP, the Governor's proposed budget calculates a "workload budget" arrived at by adjusting current year (2007-08) funding for the MHSSCP ($209.06 million) up by the projected 4.94% COLA. The proposed budget then reduces this "workload budget" ($219.38 million) by 10.89%, arriving at a total statewide funding level for the MHSSCP of $195.49 million.

Although we have not yet seen budget bill language, the Department of Finance summary reads as follows:

Program Reduction

This proposal will eliminate the 4.94 percent COLA and reduce per pupil rates from approximately $78 to approximately $70 and minimum funding levels from $5,000/$10,000/$30,000 to $4,456/$8,911/$26,733, respectively.

Reduction Impacts

Fewer counselors or less intensive counseling may result.

It's important to note that MHSSCP funding must be used to supplement existing school counseling programs. In light of the budget crisis, school districts may feel pressure to inappropriately use MHSSCP funding to supplant existing counseling programs. The Governor indicated his continued support of school counseling programs in his State-of-the-State address, which seems to indicate that his administration may support efforts to ensure that MHSSCP funding continues to supplement school counseling programs.

CASC will continue to keep you informed as new information becomes available. Should you have any questions, please contact Linda Hudson, CASC Business Manager, at (909) 815-5222 or businessmanager@schoolcounselor-ca.org.