Second teachers union joins lawsuit against California over withheld school funding
CFT has joined a California teachers union lawsuit against state officials, seeking to recover nearly $6 billion in withheld public school funding.
The California Teachers Association initially filed the legal action on Sept. 15. That lawsuit targets the state controller and the director of the California Department of Finance.
CTA alleged state officials withheld nearly $6 billion required by law for immediate distribution. The state instead labeled the money settle up funding for later distribution.
“The outstanding amount has been moved into an “IOU” bucket created out of whole cloth,” attorneys argued in the initial complaint.
A spokesperson for the California Department of Finance did not deny officials withheld settle-up money. The spokesperson said funding delays often happen until income tax revenues arrive after the fiscal year ends.
CFT represents more than 120,000 members across California. The labor group joined the ongoing legal fight on Tuesday.
“When billions in guaranteed education funding are withheld and diverted away from schools, immediate consequences are felt in classrooms throughout the state,” CFT President Jeff Freitas said in a news release.
Freitas said the state funding plan harms classrooms. He said the practice causes larger class sizes and worker layoffs.
The Finance Department spokesperson argued that local school districts should avoid using fluctuating revenues for staff pay.
“If a district is basing their school budget for long-term expenditures like multi-year salary contracts on one-time funding that can and does fluctuate, that’s not what many fiscal experts would consider to be a prudent budgeting practice,” the spokesperson said.
Both labor groups want to recover $3.9 billion from the 2025-26 fiscal year. The lawsuit also seeks to prevent future funding delays in California communities.
State officials previously waited more than a year to pay $1.9 billion from the prior fiscal year, according to a September news release from CTA.
State agencies manage public budgets and distribute statutory revenues to local school districts. When funding disputes arise, labor unions can file civil complaints in court to enforce statutory payment schedules.
The legal action remains pending in court.
