Transcript of Gov. meeting with education leaders and students

That's very nice, thank you. Well, first of all, hello everybody. I want to say thank you to all of the education leaders, student leaders, university leaders, community college leaders, everyone that is here today. And Bonnie Reiss, of course, my secretary of Education and Ana Matosantos, who is our great budget director. 

But we had a meeting here today. We had the first meeting already with the various different leaders on Monday and I thought it would be very important to bring more people together again and talk more about the importance of funding education, if it is kindergarten through 12th grade, if it is community colleges, if it is universities, the whole university system. 

That we have, to really, you know, provide enough money for those schools and universities so that we don't get into the situation that we're in right now, where we all of a sudden -- you know, they have to get rid of teachers and get rid of professors and lay off people and not enough students can go to university, we have to make cuts in Cal Grants and on and on and on. So the whole thing is, of course, terrible. 

We have done everything that we could. We have a $20 billion budget deficit and we, even in this difficult time, we have increased funding by a billion dollars for the universities, with community college and all this and we funded Proposition 98 fully. But the bottom line is that's not enough, they need much more money. They need more money for the student loans and for all of those different programs. 

And we have had great discussions here about the funding mechanism. We don't always agree on all the different ways that the funding mechanism should work and how do we create better funding but we had good discussions. And I think everyone here is in agreement that we need to pay attention to that and we need to put the pressure on the legislature also to make sure that they don't make any cuts and to go and vote for my budget that I have proposed. And we've got to start thinking not only about this year, when we are in this year of crisis but to think in the future about how do we guarantee that there is enough funding available for education and that's what we talked about. 

And of course I'm a big believer that rather than going and looking for more tax increases or move monies around or look for the two-thirds, to dismantle the two-thirds vote for the budget or for tax increases and all those kind of things. I think we should look at to reform our tax system that is a very volatile tax system, that every time the economy goes down a little bit, or much, then we have a huge drop in revenues. Our economy went down by 2.8 percent and we had a drop in revenues last year of 27 percent, so that is a dysfunctional tax system.

And we also have one of the few states that does not have a rainy day fund, so our budget system also has to be reformed so we create this rainy day fund. I'm going to work on it. I told everyone here and on Monday also in the meeting that I'm going to work on this with the legislature, to bring Democrats and Republicans together, to get this done this year, because I think it's the most fundamental and most important thing not only for education but this is the most important thing if it is for health care programs, if it is for law enforcement, if it is for foster care, if it is for the most vulnerable citizens, for the prisons, for all of those kind of things. 

And talking about prisons, of course, the thing that I have also proposed is that we should have a constitutional amendment that we never spend again more money on prisons than we do for higher education. Because what does that say about our state, that we pay more money towards the prisons than on our great students that we have here and our future? I mean, that's terrible, that we once had, 30 years ago, we spent 3 percent of our general fund on prisons and now we spend 10 percent. At that time we spent 11 percent on higher education; now we only spend 7.5 percent on higher education. So this has to be turned around, this whole thing, so that we really show to the world and to our students where our priorities lie. 

So anyway, so we had, like I said, great discussions. If you have any questions -- if anyone else wants to comment on it -- Jack, if you want to say a few words, please feel free. 
 

SUPERINTENDENT O'CONNELL:

I think the tenor of the conversation was a great appreciation to the Governor for bringing everybody together. We understand the difficulties that we have but we also are looking for not just a short-term solution to public education financing but also long term, that more predictable, stable revenue source not just for the next three months but really beyond. And it was mentioned that we're concerned, from the student perspective, about younger brothers and sisters and to be able to have access and quality education to our institutions of higher learning. 

And if we can do our job well in K-12, that too will further provide a better product for our university system. But K-12, we're looking at a record number of layoffs with the March 15th date looming. And it quickly is going to mean fewer classes in music, the arts, career-technical education -- which is important to many of us -- the sports opportunities. It's going to mean fewer counselors, nurses, librarians and larger class sizes. And we want to have that more personalized, individualized educational opportunities for all of our students, really pre-K through university. 

So we are hopeful and we've talked about trying to even go up and down the state with this group and other similar groups like it, with the Governor's leadership, to try to find that elusive long-term, predictable, stable funding source. So thank you again, Governor. Thank you. 
 

GOVERNOR SCHWARZENEGGER:

Thank you, Jack. Thank you. Robert, do you want to say a few words, since you're the chancellor? 
 

CHANCELLOR BIRGENEAU:

I'm Bob Birgeneau, the chancellor at UC Berkeley. All of us, students and all parts of the educational sector here in California agree, first of all, about the importance of Cal Grants and guaranteeing access for students no matter what their background is. We also all revere the Master Plan and we fear that it's threatened severely by the continuing cuts and that we must maintain excellence in our community colleges, our universities, Cal State system and the University of California system. 

I would say it's also unanimous among us that, in order to recruit and retain the kind of faculty that our students deserve, they want to know that five years from now -- not just the next year but five years from now -- that California will have a great educational system. And in order to achieve that we cannot be bounced around, up and down, up and down, exactly as the Governor has said. And so we have to move toward a stable, long-term financial plan for supporting higher education and K-12 in the state of California. 
 

GOVERNOR SCHWARZENEGGER:

Victor Sanchez, I would like you -- since you represent so many students, you're the president -- why don't you say a few words also, please?
 

MR. SANCHEZ:

I think the overall sentiment is that, especially among the students, is we're losing a public good. We're losing it to this kind of pattern of privatization. I think our fees on average in state tuition -- or fees, as it's supposed to be called at the UC system -- is upwards of around $27,000, total cost of education. And yeah, we need short-term and long-term solutions. I think the Governor's budget is a step in the direction of prioritizing higher education but we also need to prioritize Cal Grants, we need to prioritize the future of this state, because our institutions are suffering. 

But more or less the future of this state is at stake. Without proper investment, without proper visionary benchmarks, I think this state is going to stand to suffer very, very tough consequences as the future looms forward. But again, we need to look at alternative and creative new solutions for revenue, relook at our tax system and do that all together, because I think that's what's most important, is coming together and advocating on what we all believe is important. That's that education, I think for us as students, should be a right and not necessarily a privilege. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much. Thank you. Benjamin? Do you want to say a few words? 
 

VICE CHANCELLOR QUILLIAN:

Ben Quillian, I'm the executive vice chancellor for the CSU. And I agree with everything that's been said here today. We need to invest in higher education, invest in education more generally. Education is a part of the solution; it's not the problem. And without education we will have a citizenry that will have a problem going forward. Any kind of democratic society requires an educated population and in order to move California forward we definitely need to invest in higher education. Right now we are putting a terrible burden on our students. We've had to raise tuition. We have put a burden on our faculty members with increased class sizes. We need to make sure that we have the type of quality that the citizens deserve in the state of California. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much. Thank you. Jack, since you're the leader of the community colleges, why don't you say a few words?
 

CHANCELLOR SCOTT:

Well, I'm glad to say a few words. I'm Jack Scott, I'm the chancellor of California community colleges and I'm proud to say it's the largest system of higher education in America. Unfortunately, this year we're educating 200,000 students for which we're getting no remuneration. Fortunately, the Governor in his budget has recommended that we get a 2.2 percent increase for growth in the community colleges. You know, we're the place where three-fourths of the veterans go, we're the place where 70 percent of all undergraduates in California find their higher education. But we are struggling. And we are hopeful as we join hands here together today that it's a new step forward for higher education in California, because that's the future of California's economy. We know that highly skilled people fill the jobs in California and, if we don't meet that need, then the future in California is not going to be very bright. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much, Jack. Alexander, do you want to go and make some -- since you're the local university leader, to make some comments? 
 

UNIDENTIFIED SPEAKER:

I think we're all in agreement that education is really something that has to be the top priority for the state, not only for now but the future. At the campus level and from our campus perspective, we don't like turning students away. It's going to affect their lives now and into the future. And I think what the Governor is suggesting is that we invest now for the future of California, for the development of the workforce and the economy and the citizenry that is going to make this state even greater than what it is today. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much. Is there anyone else that wants to talk? Because I just pointed at different ones. Would you like to say a few words? 
 

VICE PRESIDENT PITTS:

I just echo -- Larry Pitts, executive vice-president of the University of California. And to echo the investment thrust that has been forward, California has to grow out of its current situation; there just is not enough income at present to meet all of the very important needs that it has. And education is that investment. Higher education will lead us toward more and better jobs, more and better industries. That sort of ability of higher education to serve the students, to provide the workforce that's needed in California, is absolutely critical. And we're grateful that the Governor recognizes that and has stress higher education in his budget. We hope that the legislators will understand and accept that and the public will support that. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much. 
 

STAFF:

We heard from the UC student leader. Perhaps we could hear from the community college leaders and the Cal State student leader as well. 
 

GOVERNOR SCHWARZENEGGER:

Very good. 
 

MS. MILBURN:

I'm Reid Milburn, I'm the president of the Student Senate for California Community Colleges. And like everyone else has been saying, we really appreciate this opportunity for partnership and the Governor's dedication to education. In our system we want to protect the most vulnerable students that are being turned away right now, as President Gonzalez said. These are people's lives and they're being turned away right now and they have no opportunities for the future, so we really want to protect the investment in California and California's future. 
 

STAFF:

And you yourself are a returning veteran --
 

MS. MILBURN:

I am. 
 

STAFF:

and reflect the population that Jack says is -- three-quarters of all returning veterans are going into community college. 
 

GOVERNOR SCHWARZENEGGER:

Very good. How about you, Steve?
 

MR. DIXON:

Thank you. I'm Steve Dixon, president of the California State Student Association. As the Governor mentioned, it's very unfortunate that we have had a lack of long-term planning in this state and now it's resulted in tens of thousands of students who played by the rules, did what they were supposed to do and now they can't have a seat in the State University or the University of California, or they can't find classes in community colleges. They will be denied access to what they were promised by the Master Plan For Higher Education because of a lack of planning, because of a lack of a proper tax structure in this state. 

And these are things that need to change, not just short-term but long-term. We cannot save the economy of California by killing off education and that is why it is so important that higher education be funded fully and it be funded in a long-term sense. We are not a cost; we are an investment. We return dollars to the economy for every dollar spent on us and we return in social gains as well, social justice through diversity changes. 

This state is great because it built its middle class through a strong higher education system. I would urge that the legislature and the people of California to stand up and encourage these long-term changes that are necessary to promote a fiscally responsible higher education program. 
 

GOVERNOR SCHWARZENEGGER:

Thank you very much. Jessie? 
 

UNIDENTIFIED SPEAKER:

I would just like to add that -- there's a lot of legislation on the table right now that's looking to change the way we do education, education funding. But I would encourage all the people of California, especially its students, to really stand behind your constitutional amendment proposal. I think it is a great plan that would lock in the funding that we really need in the long term in really reshaping our priorities. 

And I also think that some of the -- we didn't really get into this discussion deeply but I think as far as -- we all know that our higher education and K-12 systems really drive the economic engine of the state of California. But our impact federally and across the nation and globally is equally as important and is something that we work very hard to do. So I think, as we work together to increase federal funding, I think that's an important step, next step, to take as well. 
 

QUESTIONS/ANSWERS:

GOVERNOR: Thank you very much. Thank you. Do you have any questions about any of that? Yes?

QUESTION: The University of California, just to use one example, is seeking a billion dollars in restoration this coming year. Clearly they're not going to get anything close to that, given the budget. We have projections of a lot of students who will be marching here at the Capitol tomorrow as well as campuses around the state. How concerned are you about the rise in civil disobedience, like we saw, for example, last week at UC Berkeley? 

GOVERNOR: Well, I think that, first of all, I always tell everybody that the squeaky wheels get the grease, so therefore I am all for people letting their voice be heard and letting also the legislature know here. And that's why I'm very happy that everyone is here, so that they create action up there, because we have been now waiting for almost two months since my Budget Presentation and since my State of the State Address for some action. So I think it's very important to put a little pressure on them and to go and get the action going.

I think that, as I said, the first and most important thing is that Cal Grants, that we up the Cal Grants, that we give more money to that. And I have promised the students and the education leaders and university leaders here that the first money that comes in beyond of what we anticipate should go to Cal Grants because I think it is key that every student has the chance, if you are from a low-income family or if you're from a rich family, that everyone should have access to our universities, to our community colleges and get a great education and get equal education. And I am the first one always to preach for equal education. 

QUESTION: About the civil disobedience? 

GOVERNOR: I think that I have enough faith in our students that they're going to go and rally tomorrow and let their voice be heard but they do it in within the law. 

QUESTION: Governor (Inaudible) responsibility do you (Inaudible) for this lack of planning and lack of long-term planning in particular and how much have you left the hard decisions to your successor? 

GOVERNOR: I think that it is very clear that since the time I came into office I said that we need budget reform, we've got to reform the tax system. And of course this is a very difficult thing to do. I also made it very clear that, even though I'm a very strong guy and I played the Terminator in the movies and created all this action but when it comes to this job I need a lot of help, I need a lot of lifting. There's a lot of lifting that needs to be done and alone I cannot do it. We don't have a dictatorship here and thank God we don't, so it's not a one-man show. It is important that the legislators do the same thing and that the people also agree to that. 

So I have had several attempts with the legislature to fix the budget system and to create a rainy day fund -- it didn't work. I went to the people and put it on the ballot -- it didn't work. But we never give up. I mean, you all saw the Olympics just these last 14 days where people have won and people have failed, people were injured, people were killed. So you just continue on and you just keep grinding away. That's the important thing. And that's what I'm going to do, until we get it done it done. I think we have a good shot of getting the reforms this year because of the crisis. 

QUESTION: Governor, I talked to a future teacher today. She's getting her teaching credential this year and she's extremely concerned about being able to get a job when she gets out when she sees all the layoffs across the state. She's applying for teaching jobs in Missouri. The state school system, along with the UC system, have seen dramatic decreases in the people that are going out to get credentials. What do you say to those students who want to teach the children of the future but are too concerned to go out and to get a credential because of the situation they're seeing across the state?

GOVERNOR: Well, first of all, never give up is my message to everyone. We are going through some difficult times right now. We are faced -- there's a world economic crisis where the whole world, the value went down. Everyone, if you look at the headlines in Germany, there are the same headlines as in Greece, the same as the headlines in Spain or in Japan. Everywhere people are struggling, the economy is down. 

But what is inexcusable -- because we have no power over that -- but what is inexcusable is the self-inflicted wounds that we have here. And the self-inflicted wounds is that we don't have -- we have never prepared, as you have heard several say, for the future. That we have never gone and created a budget system and reformed the budget system where we put a rainy day fund aside, $12.5 billion, which will be 10 percent of our normal kind of state revenues. And that is a shame. And that we haven't really redone the tax system, reformed the tax system. That is inexcusable. 

I think that right now there is all kinds of dialogue, how to patch up and how to fix this. But the way you fix this is by just going, what is the reason why we all of a sudden have $20 billion less? What is the reason that last year we had $60 billion less than we should have had? What is the reason for that? It's not that there's an economic crisis. It is because we have a budget system that has failed us and we have a tax system that has failed us. And unless the legislature is ready to go and fix those things we will always have this kind of a disastrous situation. 

So I promise you that I'm going to work on this and I'm going to work with the legislature and I will do everything that I can to bring Democrats and Republicans together to come up with a responsible kind of a tax system and a responsible budget system. 

But in the meantime, I think the key thing is that we take -- if there's any additional money coming in that we go and give it to education and especially to Cal Grants. OK?

QUESTION: Governor, Democrats have a gas tax plan. They've modified the proposal you put forth on the gas tax such that it would provide more money for K-12 schools than your budget would. Would you sign that bill? 

GOVERNOR: I will not sign any tax increases. We did that last year and we don't want to put another Band-Aid on top of the wound. What we want to do is first let's go and fix the system to create a system that will go and guarantee that those students in universities, in those schools, high schools, junior high, all of the elementary schools, community colleges, that they have a guaranteed source of revenue. That has been the big problem. And the only way we can do that is by redoing our tax system and by creating a rainy day fund. They should talk about that. That is the priority.

QUESTION: Just to follow up -- they've said they're going to take out the tax part of that bill. They've amended it and they're going to take it up tomorrow in the Senate. Is that enough to satisfy your concerns?

GOVERNOR: I have not seen the bill, so I cannot comment on any bill that is not on my desk and that I haven't really looked at. But I can just tell you, tax increases is out of the question here and I made that very clear to everybody. 

QUESTION: Governor, excuse me. You've always talked about California as being an exceptional state and one of the ways that we've tried to do that is through the Master Plan for Higher Education. We just heard Chancellor Birgeneau that the state budget cuts have really severely threatened that plan. Do you think it's still -- the current plan is realistic? Can we afford to fund it? Do we need to scrap it and come up with a new plan?

GOVERNOR: We have to make sure that we can fund it. I mean, we should never back off of a plan like that, that is a great plan. I think that we have to do everything that we can to go and create a better system for the funding mechanism and then I think we will be fine. 

And we're going to get out of this crisis. You know, let's not think this is the end of the world. We're going to get out of this crisis. This is kind of a tough chapter for California. But let me tell you something -- no matter how tough of a situation we are in, it is still by far the number one place in the world. There are people from all over the world that want to come to California right now, even though they know that we are in a financial crisis, they know that we are earthquake prone, they know that we have our mudslides and all of those kinds of things. 

But they love California because we still have the best university system, we still have -- we are number one in biotech, in high tech, in green tech, in all of those different techs and the number one in entertainment and all of those things. So I would not switch this place out for anyplace in the world, that I can guarantee you. 

Thanks very much. Thank you.