by Lance T. Izumi, Fellow in California Studies
Pacific Research Institute
February 4, 2003

Announcer lead: Lance Izumi says that Gov. Davis has a good idea to reform education funding.

Governor Gray Davis has taken some justifiable hits for his proposed state budget. However, let's give credit where credit is due. The governor's budget plan does contain some good ideas.

For example, the governor wants to consolidate funding for 64 so-called education categorical programs into a single $5 billion block grant to local schools. Categorical programs earmark money for specific purposes. Such funding restrictions prevent local schools from addressing higher priority, but unfunded needs in other areas. A school may need more money to buy textbooks, but can't use adult education categorical funds to do so. The governor's block grant would cut the funding strings and give local schools the flexibility to better meet the needs of their students.

The governor's proposal is not perfect, however. He excludes a number of expensive categorical programs from his block-grant plan. For instance, even though a comprehensive study has found no conclusive evidence that class size reduction increases student achievement, Davis exempts the nearly $2-billion-a-year program from his proposal.

Further, Sacramento school superintendent Jim Sweeney worries that block grant dollars could simply end up on the collective bargaining table rather than going to meet student needs. Florida may offer an answer to this legitimate concern.

As part of its school accountability system, Florida offers exit vouchers to students at failing public schools so they can attend local private schools. Florida public schools have responded by improving the quality of education programs for students.

A similar accountability measure in California would allow parent-driven market forces to ensure that block-grant money be used to improve student achievement. Given the current political make-up of the State Legislature, adopting such a measure may seem unlikely. However, Governor Davis has said that the magnitude of the budget crisis requires that hard decisions be made.

The governor has offered a good idea to reform education spending. Lawmakers should build on it in order to make it work well.

With a perspective, I’m Lance Izumi.

Lance Izumi is the Director of Center for School Reform at the California-based Pacific Research Institute for Public Policy. He can be reached via email at lizumi@pacificresearch.org.