California’s largest teachers union, the California Teachers Association (CTA), escalated their opposition against Governor Gavin Newsom’s budget plan on Friday. The union announced a public campaign aimed at blocking part of Newsom’s proposal, which they argue would severely impact school funding in the long term.

Union’s Campaign Against Budget Proposal

Newsom’s plan involves a complex accounting maneuver designed to shield public schools from $8.8 billion in immediate cuts. However, CTA President David Goldberg contends that the maneuver would ultimately cost school districts nearly $12 billion in future funding. To raise awareness about what they consider an unconstitutional move, the CTA will launch advertisements starting Monday. Goldberg indicated that if these efforts fail, the union is prepared to take legal action. “We will not stand by and let this happen,” Goldberg asserted during a news conference. “When you have clear violations of the Constitution, often you go to legal remedies. So that is one of the tools in our toolbox.”

Budget Deficit and Proposed Solutions

This public opposition signals a critical moment for Newsom, who has largely avoided major conflicts with key constituencies during recent budget challenges. Last year, he addressed the budget shortfall by borrowing and delaying expenditures, preserving the most significant programs. However, the deficit has grown, now reaching at least $45 billion, according to Newsom. The nonpartisan Legislative Analyst’s Office estimates the deficit to be closer to $55 billion, primarily due to unaccounted cuts in public education spending.

Newsom Defends His Proposal

Newsom defended his proposal, emphasizing that it protects public schools from immediate cuts that could result in widespread layoffs and disruptions. “I don’t want to see thousands and thousands of pink slips go out. I don’t want to see disruption in the system,” he stated. The crux of the issue lies in Proposition 98, a voter-approved formula that dictates the minimum funding for California public schools. The formula allocated $76 billion for schools in the 2022-23 fiscal year, but actual state tax collections were 25% lower than predicted, retroactively altering the required funding to roughly $67 billion—a difference of $8.8 billion.

Newsom’s administration proposes allowing schools to keep the overpaid funds while spreading the $8.8 billion cost over future budgets starting in 2025-26, essentially giving the state a zero-interest loan. Critics, including CTA and school funding experts, argue that this maneuver ignores the $8.8 billion, altering future school funding calculations under Proposition 98. They estimate that this could result in nearly $12 billion in funding over the next two years.

Concerns Over Long-Term Impact

School advocates are alarmed by the potential long-term impacts of Newsom’s plan. Karen Getman, an attorney and school funding expert representing the CTA, criticized the proposal as a baseless fiction designed to reduce future funding guarantees under Proposition 98.

Kevin Gordon, a lobbyist for California school districts, suggested an alternative approach. He proposed that Newsom could negotiate a suspension of the school funding formula, allowing the state to repay the $12 billion owed over time rather than changing past allocations.

The nonpartisan Legislative Analyst’s Office also criticized Newsom’s proposal, labeling it a “bad fiscal policy” that creates binding obligations worsening future deficits. Newsom, however, maintains that his plan preserves investments made in previous years, disagreeing with the critics’ stance. “We respectfully disagree with that position,” Newsom stated, defending his proposal.