State's Budget Woes Shifts to Your Neighborhood School

California to delay payments sooner than expected

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    BERLIN - SEPTEMBER 18: A teacher tends to fourth-grade children in a classroom in the elementary school at the John F. Kennedy Schule dual-language public school on September 18, 2008 in Berlin, Germany. The German government will host a summit on education in Germany scheduled for mid-October in Dresden. Germany has consistantly fallen behind in recent years in comparison to other European countries in the Pisa education surveys, and Education Minister Annette Schavan is pushing for an 8 percent increase in the national educaiton budget for 2009. (Photo by Sean Gallup/Getty Images)

     Gov. Arnold Schwarzenegger, the state's controller and treasurer are delaying $2.9 billion in payments to school districts and counties a month earlier than expected.

    The leaders on Monday issued a joint letter notifying state lawmakers of their need to make debt and pension payments as the impasse over California's $19 billion budget shortfall drags on.

    That means school districts and counties won't be paid in September as expected.

    Bob Wells, executive director of the Association of California School Administrators, says the state is only shifting its problems onto school districts.

    The Legislature in February gave authority to the three officers to delay payments over a three-month period to help manage the state's cash flow.