California Watch

Up to $200 million in federal stimulus funds could be in jeopardy unless the state answers allegations that it is using accounting tricks to cover up a lack of spending on public education.

The U.S. Department of Education informed Gov. Arnold Schwarzenegger's office last week that no decision will be made on the state's application for an upcoming round of stimulus funding until the concerns raised by school districts and education advocates are addressed.

A coalition of community groups, including Public Advocates and Californians for Justice, complained to federal authorities that the state's financial commitment to public schools didn't comply with the minimum levels required to qualify for the stimulus.

They also accused the governor's office of deferring school funding to future years but manipulating numbers to make it appear as if payments to districts were occurring in the present. The state must respond to the charges by March 26 or risk losing millions in stimulus relief. In a press release, Jeremy Lahoud, executive director of Californians for Justice said:

The State of California needs to live up to its part of the bargain to fund public schools. By playing a numbers game with the state's investment in education, the Governor is playing with the educational opportunities of millions of schoolchildren and endangering the prospects of an entire generation. California schools need this support.

John Affeldt of Public Advocates said not holding the state accountable could have dire consequences nationally.

We sincerely hope that California complies with the minimum stimulus spending provisions so that it will receive all of the much-needed federal funding for which it is eligible,” said John Affeldt, Managing Attorney for Public Advocates. “However, to award California ARRA funds (stimulus) under its present application renders Congress’ minimum spending provisions hollow and opens the door for other states to obtain stimulus funds while thwarting Congressional conditions.