A Quick Look at Proposition 98

What is Prop 98?
Proposition 98 was a constitutional amendment passed by California voters in 1988 that established a minimum level of funding for K-12 schools and community colleges. The funding provided by Prop 98 guarantees a minimum level of funding for California schools and provides for automatic increases when the state is facing tough economic times.

How does the Prop 98 guarantee change from year to year?
How much money Proposition 98 says that the state has to spend on education varies based on two primary factors:

• The economy: if the state's economy is doing well (the state is taking in more money in taxes than it expected), the guaranteed level of funding goes up
• Number of students: if the number of students enrolled in K-14 schools (right now 6.3 million) goes up, the guaranteed level of funding goes up

Technically, the state uses one of three tests (creatively called "Test 1," "Test 2," and "Test 3") to determine how much money goes to schools -- basically increasing funding by either the growth in personal income or the growth in the state's bank account (general fund).

Can the Legislature spend less than the Prop 98 guarantee?
Yes! While the voters have told the Legislature (and Governor) that Prop 98 is the minimum amount of money schools need, with a 2/3 vote (27 of 40 senators and 54 of 80 assembly members), the Legislature can suspend the guarantee and budget any amount they choose. This has been done once before, in 2004-05, but is exactly what is proposed this year.
If Prop 98 is suspended, however, the state basically takes out a loan against the guarantee and has to repay it in future years when there is stronger economic growth, but this can take more than 5 years to happen. The state owed this money back to schools from 1990-98 and every year since 2001.
Students can help protect Prop 98 by participating in the Day of Action on Friday, April 18, 2008. If we can convince 13 senators and 26 assembly members to vote "No" to the suspension of Prop 98, the minimum funding guarantee will be retained. Join in the movement by visiting www.youthnoise.com/rtl2/!

Can the Legislature spend more than the Prop 98 guarantee?
Yes! The Legislature is free to do this at any time. We at Right To Learn expect that whenever the state's economy recovers from this latest downturn that the Legislature will once again allocate substantial funding to K-12 schools.