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Pension Plan Underscores Philosophical Differences Over Budget

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Sacramento, CA — A key player in the state´s powerful education lobby Friday criticized a Democratic compromise proposal on the state budget.

That throws a last-minute curve into talks that both sides said were progressing toward a possible deal.

Governor Arnold Schwarzenegger wants to shift nearly $470 million in state teacher retirement contributions to local school districts.

The Democrats´ compromise would cost schools about $235 million, half of Schwarzenegger´s proposal.

The California School Boards Association, representing virtually all of the state´s school districts and county offices of education, issued an alert to its members.

The association is hoping to stop lawmakers from accepting the compromise proposal.

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