Why public education finances in California are in bad shape

Matthew DeBord:

The bigger question here is whether bankruptcy would actually help any of these struggling districts. Debts could be restructured and bondholders paid off, but would the districts be in any better shape? It's not even clear to me that a higher level of state oversight would make a difference. The state might just know sooner that it has to find the money for a bailout. And with revenues falling everywhere, it would probably be impossible for the state to insist that all at-risk districts bulk-up their reserve funds.
Throwing up your hands probably isn't an option, however, when it comes to public education. But obviously in close to a fifth of the state's school districts, cost structures aren't able to cope with major budget shocks, at the state or local level. And remember, the state's population is growing -- it could hit 48 million by 2020. A well-educated workforce is something that California will urgently need to remain competitive in the 21st century. But in order to have that, the state is going to need to do something to stabilize the finances of its public education system. And before that...deal with the falling axe of the trigger cuts.

Posted by Jim Zellmer at December 13, 2011 3:20 AM
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