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$4 billion Mandate Debt by Year End?
Next week, the Commission on State Mandates (CSM) is scheduled to approve the new Graduation Requirements Parameters and Guidelines. Barring an unforeseen reversal, these guidelines will apply a Reasonable Reimbursement Methodology (RRM) to provide reimbursement for the salaries and benefits of 25% of high school science teachers. This RRM is driven by enrollment and average science class size along with restricted funding offsets. The new Graduation Requirements Parameters and Guidelines will trigger a spring filing date for FY 1995/96 to 2007/08 reimbursement claims. The Department of Finance estimates the newly filed claims to top $3 billion for the thirteen year retroactive period and $250 million per year prospectively. Add the new Graduation Requirements claims to the current $1.1 billion in deferred education claims and the State's Education Mandate Credit Card Debt will soar to over $4 billion by fiscal year's end. Education mandate claims will increase the education mandate backlog to ten percent (10%) of current year Proposition 98 Expenditures. A Few Districts Already Paid
Two years ago, after 13 years of waiting, 22 school districts, led by the lead litigant San Diego USD, received $59 million in payment for Graduation Requirements salary claims. These school districts received payments because they:
a) Filed claims in 1993 as part of the initial filing deadline; b) Filed incorrect reduction claims when their claims were reduced; and c) Pursued court action when their claims were ultimately denied by the state. Steve Smith found the litigation outcome very gratifying as he first filed these claims in 1993 and routinely challenged the Controller's Graduation Requirements interpretation. 16 of these 22 school districts would not have been paid without his efforts.
Will the State Pay the Graduation Requirements Claim?
The California Constitution requires the state to provide "a subvention of funds" for mandates it imposes upon local government and school districts. The question centers on when will payments be forthcoming. With Proposition 98 funding and these tough economic times the battle for mandates to receive a share of annual education funding will become more difficult. Do not let another year go by without seeking your Constitutional right to mandate reimbursement. The next Budget cycle will have $4 Billion in unrestricted mandate reimbursement at stake. Ensure your district files on time and pushes hard for mandate funding during the upcoming budget deliberations.
Please feel free to contact us with any questions regarding this or any mandate program.
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