Creating a $9.3 billion education obligation could lead to class size reductions, rehiring of teachers, purchasing of up-to-date textbooks and the restoration of educational programs, according to those supporting Proposition 1B on the California ballot May 19.

The state measure creates a repayment plan to public schools, covering a gap between funds given to schools and money previously owed. Proponents see the measure as a way to restore cuts currently planned and already in place. The Libertarian Party of California, on the other hand, has come out against the measure, calling it a massive new spending measure the state cannot afford. However, no official argument against the measure was filed.

Locally, millions in cuts occurred during the current school year in response to the state’s constantly changing budget predictions. Hundreds of teachers and staff at schools recently received preliminary pink slips. In addition, at least one district, San Carlos Elementary, is considering increasing class sizes next year.

None of the local district officials have taken a stance on Proposition 1B. State Superintendent of Schools Jack O’Connell announced his support for the proposition yesterday.

“Instead of permanently losing these vital education funds, Prop. 1B sets up a repayment plan to ensure schools and community colleges are paid back as economic conditions improve. If we don’t pass 1B, California will be permanently downgrading its public school system,” California Teachers Association President David Sanchez wrote in the argument favoring Proposition 1B.

Proposition 98, passed by voters in 1988, requires the state to provide a minimum level of funding for public schools annually. This money is made from state general fund and local property tax revenues. For the current school year, the state budget includes $51 billion in funding.

The level of funding is determined using one of three tests. Most commonly, 13 out of the past 20 years, the state used the prior-year funding level and adjusted it based on attendance and the state’s economy. The governor and Legislature can override the requirement. Doing so takes a two-thirds vote from each house and approval by the governor.

In years when Proposition 98 is suspended, the difference between what is granted and the larger amount is known as the maintenance factor. The state is supposed to repay schools this amount in future years.

Under Proposition 1B, a $9.3 billion supplemental education obligation would be created. Payments would be made in annual installments beginning in the 2011-12 school year. These would take the place of any maintenance fund repayments created in previous years. It is unclear what effect it would have in future year obligations, according to the Legislative Analyst’s Office. Power is given to the governor and Legislature to decide how the funds will be dispersed. The success of Proposition 1B is tied to Proposition 1A. Proposition 1A establishes a funding mechanism. Therefore if it fails, there is no money to fund Proposition 1B and it cannot go into effect.

For the full proposition analysis visit http://www.voterguide.sos.ca.gov/.

Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.