Budget deal devastates California education Print E-mail
On July 28, 2009, the Legislature finally passed and the governor signed a budget intended to address a $24 billion deficit. The Fiscal Year 2009-10 budget came on the heels of a mid-year budget revision in February that had already sought to address a projected two-year deficit of $41.8 billion through a combination of spending cuts ($14.9 billion), new revenue measures ($12.5 billion), borrowing ($5.4 billion) and new federal funds ($7.9 billion). All told, over the last two fiscal years, the budget gap has totaled $65 billion. The hemorrhage appears unceasing, as a new budget gap of $8 billion is currently being projected for the next fiscal year, raising the specter of further cuts in vital services.

To date, early care and education (ECE) programs have avoided the type of draconian cuts implemented in K-12 and higher education. Total appropriations from the state general fund passed through the California Department of Education have been flat between FY 07-08 (total of $2.568 billion) and FY 09-10 (just under $2.6 billion). Over the last two years, there have been no cost of living adjustments (COLA), growth adjustments, or increases in the standard reimbursement rate – the rate at which the state reimburses ECE providers for subsidized childcare. As a result, real (inflation-adjusted) funding levels have fallen by 3-4% between FY 08-09 and FY 09-10.



Despite reductions in revenue allocations, total employment in ECE has been rising. According to data published by the Employment Development Department (EDD), in the first quarter of 2007 a total of 98,800 persons were employed as ECE workers. By first quarter 2009, this number had risen to 105,710, an increase of almost 7,000. However, despite increased employment, the hourly wage and annual earnings of ECE providers have been flat over this same period, with no increase in real (inflation adjusted) terms. Earnings remain low on average. The median annual salary for childcare workers was $23,687 in data reported for Q1 2009, while that of preschool teachers was $30,472 in this same period.

The ongoing fiscal crisis at the state level reaffirms three things. First, it is imperative that California rescind the 2/3 legislative majority required to pass a state budget to avoid ongoing legislative deadlock. Second, we need to revisit Proposition 13 by instituting a “split roll” that would shift tax burdens onto wealthy property owners and large corporations. Third, ECE workers, more then ever, need unionization to build political power. This is particularly urgent given the protracted, multi-year nature of the fiscal crisis that will contiue to impact those employed in ECE and the quality of ECE services. 

To help meet these goals, The California Federation of Teachers Early Childhood Education Organizing Project will continue its work to engage our members and locals to position the CFT to more effectively organize new members into the AFT, and to have more input on policy and legislation that impacts our ECE members’ work.