LOS ANGELES - Gov. Arnold Schwarzenegger approved a $117.3 billion state budget 11 days into the new fiscal year. The budget features no additional borrowing, no new taxes and provides for a year-over-year increase of $3 billion for K-14 education. It also fully funds voter-approved Proposition 42, which allocated fuel taxes for $1.3 billion in transit improvements and paid down $1.2 billion in debt owed to cities and counties one year earlier than required, which were principals the governor cited as essential.

Items vetoed included $20 million for educational materials for English-learning students, prostate cancer treatment for the poor, a plan to hire 40 new game wardens and a labor studies program at the University of California that held workshops on how to increase union support and membership.

After the budget’s approval, the state’s credit rating improved slightly but still ranks low compared to other states.

The governor, during the signing of the budget ceremony, said more jobs were created, the economy turned around and $6 billion increased in new revenue.

“But let us not forget, no matter how good this budget is, we still have a problem with our structural deficit,” Schwarzenegger added.

The California Teacher’s Association and Education Coalition said the $3 billion budget increase was half of what the governor promised. The upcoming November 8 special election ballot, which has California voters returning to the voting booths for the fourth statewide election in two years, could also affect education-spending plans. On the ballot are two initiatives sensitive to the Education Coalition. Proposition 76 asks voters if “changes to state minimum school funding requirements (Proposition 98) permitting suspension of minimum funding but terminating repayment requirement, and eliminating authority to reduce funding when state revenues decrease” is necessary.

Proposition 98, approved by voters in 1996, guarantees a minimum level of funding for public schools.

Also, current law allows that after two years probation, teachers can become tenured. Proposition 74, on the upcoming special ballot, “would extend the probation period to five years and expand the conditions under which permanent employees may be dismissed.”

The CTA and the Education Coalition stated they “are deeply disappointed” by the approved budget and the upcoming ballot agenda.

“(The budget) fails to meet the Constitutional requirements of the voter-approved Proposition 98, and it underfunds our schools by $3.1 billion at a time when they receive nearly $1,000 less per pupil than the national average,” the groups said.

The governor said he is proud of the budget in regard to school spending.

“Our most important investment is in education. We are putting more money into education than ever in our history,” Schwarzenegger said. “We increase education spending by $3 billion - $50 billion total. That is almost half of our entire state budget.”