SACRAMENTO — State Superintendent of Public Instruction Jack O'Connell today issued the following statement in response to the release of the Legislative Analyst's Office (LAO) review of California's Fiscal Outlook [http://www.lao.ca.gov/2005/fiscal_outlook/fiscal_outlook_05.htm] (Outside Source).

"The Legislative Analyst's report today notes that California's fiscal outlook has improved in large part because spending on K-12 education was significantly less than the Proposition 98 guarantee would have been if the agreement between the Governor and the education community had been upheld. While fiscal discipline is important, the fact that our budget was balanced on the backs of students should not be celebrated.

"The LAO also noted that new revenues to the state last year were allocated to pay off loans from local governments. However, California still owes a large debt to California students. Schools are owed more than $3 billion under the terms of the Governor's deal two years ago. Without this debt being repaid, the minimum-funding guarantee for schools in this budget year is not projected to even cover growth in the student population or the real dollar cost of living increases for existing programs — despite the fact that revenues are increasing. 

"In last week's election results, California voters sent a clear message to policymakers that investing in education remains a top priority. I urge the Governor and the Legislature to respect the voters' intent and make an investment in California's future that will pay dividends many times over in terms of our state's economic success. Ignoring the need to fully fund our schools would be a costly mistake that ignores the will of voters in this state."