Mandate Block Grant Idea Resurfaces
The Legislative Analyst's Office (LAO) has released its annual "Let's Make a List of Improbable Legislative Changes" and this year, as in years past, it includes the mandate block grant idea. Essentially, LAO believes that forcing mandates into a block grant would provide a solution to mandate funding issues and result in a better mandate system overall. We think LAO drank the legislative kool-aid on "mandate reform."
Before going into specifics, the mandate block grant assures school districts one thing - nothing. Actually, that isn't entirely accurate. The mandate block grant idea would ensure the state pays significantly less for mandates each year (assuming of course the state actually funds the mandate block grant). LAO believes that setting a per pupil amount would provide the most efficient, fair, and simplistic approach to mandate funding.
For starters, the mandate block grant could be viewed in violation of the California Constitution, which requires the state to provide a subvention of funds for the mandates it imposes on the education community. The Constitution does not say to provide a partial payment, but full payment for the costs incurred (Why do we have the $1,000 minimum claim amount? No idea.) A mandate block grant, especially at the figures LAO suggest, completely underfunds mandates to all but the smallest of claimants.
LAO claims the mandate block grant would replace a funding mechanism that is not the "most efficient." The system seems to be working fine, time is tracked, claims are filed, claims are accepted. The break down in mandates is the state's end - payment. Inefficiency in mandates stems from the state failing to meet its Constitutional obligation to fully fund mandates. Note to LAO - have the Legislature fund mandates on a consistent basis and then let's discuss whether the mandate system is inefficient.
Next, LAO claims that there is a lengthy process for determining new mandates, e.g., CAHSEE, and that somehow having a mandate block grant will help shorten that time. It is unclear where LAO gets this idea. The mandate block grant would only apply to those programs approved for payment and in no way would alleviate the burden of mandate determinations by the Commission on State Mandates. Furthermore, LAO fails to address the process by which the mandate block grant would be raised for new programs approved by the Commission. In reality, the current mandate system, and the proposed block grant approach, has no mechanism in place to adjust the block grant and what's worse LAO fails to provide one! Seems like LAO simply wants to freeze mandate payments at a particular level and pass on the responsibility of raising the block grant to the Legislature - the exact body that fails to provide any mandate funding now - splendid idea.
LAO goes on to state that the mandate block grant would alleviate "friction" between the state and claimants due to audits. While there is considerable "friction" when it comes to audits, a block grant would not alleviate audit concerns. LAO fails to spell out how the state would oversee mandates and the process by which claimants would be required to "prove" costs on a regular basis to continue to receive the block grant. Leaving such vital details for a "later date" only makes us nervous.
LAO claims that the mandate block grant addresses "both the state and local" concerns as it relates to mandates. Hardly. It addresses the state's concerns of minimizing costs for programs it imposes upon the education community. It seems to us that the main local concern is the lack of a consistent funding stream for mandates from the Legislature. It seems a more practical approach is to repay all past amounts due for ongoing and initial mandate claims (approximately $1.2 billion), begin to show a track record of consistent annual payments, and then discuss changes to funding mechanisms if ongoing payments for the amounts claimed seem "inefficient" or cause too much "friction."
Until the State steps up and meets its past, present, and future mandates obligations, the education community should never accept less than what it is entitled to. Hey LAO, let's spend more time getting full payment for mandates in next year's Budget and less time trying to lighten the State's tab for mandates.
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