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Gov. Schwarzenegger and Education Secretary Arne Duncan may have a disagreement over the definition of the word “protect.” It will be Duncan who will have the final word.
In his proposed budget, the governor assumes that the federal government will grant the state a waiver so that the state can spend $600 million less on K-12 education than it promised the federal government it would as a condition of taking stimulus money last year.
There’s no assurance that the feds will let California or any state out of the deal. And if it doesn’t, the state could be obligated to pay all or part of it back.
In accepting tens of billions from the from the American Recovery and Reinvestment Act – $6 billion over two years in K-12 help alone – the state said it would spend no less on education next year than it spent four years ago, the base year.
The feds did give the state an out in the event that revenues shrink: It can request a waiver if it at least spends the same proportion of the state budget as the year before.
The Legislative Analyst said that would appear to be the case in the proposed budget. But a lot could change between now and when the Legislature passes its own version.
The Legislative Analyst also noted that Duncan has wide discretion whether to grant a waiver. Schwarzenegger, who has been angering the administration by turning on its health-care plan, would be wise to keep on his good side.
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