Proposal

Gov. Arnold Schwarzenegger's proposed funding for kindergarten to grade 12 from all sources would be $58.9 billion for the 2004-05 school year, $818.7 million more than his January proposal. The school funding guarantee called Proposition 98 combines state and local funding. Schwarzenegger is recommending that it be $42 billion for next year, up $145.3 million from January. Schools would receive an average of $7,007 per pupil next year, $62 more than proposed in January. This year, schools are estimated to be getting $7,011.

Bottom line

Despite the status quo budget, the state's education coalition -- unions, school boards, administrators and other employees -- say they are relieved just to keep pace with inflation. The education budget includes an additional $2 billion to cover cost-of-living increases, enrollment growth and some earlier debts. Some highlights: $27.8 million to help equalize funding among districts; $100 million for instructional materials (down from $188 million in January); $107.1 million for maintenance; and $7.7 million for classrooms for charter schools serving low-income students.

Politics

As early as last Thanksgiving, the new governor offered the education coalition a deal that would all but glue the powerful lobby to his side once the budget season hit. Scott Plotkin of the California School Boards Association called the move brilliant. It went like this: Schools were owed $4 billion this year. Schwarzenegger asked to borrow $2 billion of that and said he would try to restore it over three years. In exchange, he made several promises, including no mid-year cuts this year and a cost-of-living increase next year.

State schools chief Jack O'Connell applauded the governor for making schools a priority but said they are still forced to sacrifice. He called one of the governor's proposals -- to let districts freely spend money now tied to 22 programs -- a Band-Aid fix and said a more comprehensive approach to school funding is needed.