With the election heading to the home stretch, this is the last chance to debunk some of the myths about Proposition 2.
“Proposition 2 will hurt local school districts.” School business officials and a parents organization claim that Proposition 2 will trigger a statute passed this year that would unreasonably limit school district reserves.
First, since the limit was on reserves was passed as a statute, it can be easily changed if it’s found unworkable. Second, the statute will only take effect in any year the state makes a deposit into the education reserve, which itself would be used to protect school budgets rom falling state revenues. No deposits would be made into this state reserve unless and until statewide school finances are fully funded and all school debts are repaid. Only then would the limits on local reserves go into effect. In other words, the limit on reserves would take effect during circumstances when the reserves are needed least.