March 15, 2008 - By law, school districts in California had until today to inform teachers that they could be laid off.
Across Orange County, 1,853 full-time, temporary and part-time public school teachers of the estimated 23,000 employed were notified they could lose their jobs next school year.Statewide, about 20,000 full-time teachers will receive layoff notices this week.
The number, which by some estimates had risen past 1,900 earlier in the week, dipped after Orange Unified learned retirements would almost completely cover its needed cuts.
The layoffs are due to the result of $4 billion less in funding. To offset the education cuts, Assembly Democrats this week proposed a $1.2 billion tax on oil companies. The proposal, however, required a two-thirds majority vote, meaning some Republicans would have had to sign off on the deal and they didn't.
In 2004, the last time the governor suspended Prop. 98, about 1,500 teachers locally received layoff notices, but about only 500 teachers actually lost their jobs.
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TT - Under a teachers union-funded Proposition 98, passed in 1996, roughly 40% of the state budget of California is dedicated to fund public education by a complex formula that bypasses legislative oversight. With the downturn in the real estate market more acute than any other state, property tax income has been seriously reduced. The state has a $14.6 billion budget gap. As a result, Gov. Schwarzenegger has suspended Prop 98.
In the past, California has relied upon multi-billion dollar bonds to fund ongoing operations, but a tightening credit and poor statewide economic performance, have made the cost of deficit borrowing to soar.
California budget woes growing amid slowdown
In October, Treasurer Lockyer forecast a $14.6 billion budget shortfall in 20 years if state officials cannot permanently balance the books as they issue more than $200 billion in debt for public works.
