RICHMOND (California) - CALIFORNIA'S historic budget crisis threatens to devastate a public education system that was once considered a national model but now ranks near the bottom in school funding and academic achievement.

Deep budget cuts are forcing California school districts to lay off thousands of teachers, expand class sizes, close schools, eliminate bus services, cancel summer school programs, and possibly shorten the academic year.

California schools: ranking and reactions CALIFORNIA schools now rank at or near the bottom nationally in academic performance, student-teacher ratios in middle and high school, access to guidance counselors and the percentage of seniors who go directly to four-year colleges, according to a February report by UCLA's Institute for Democracy, Education and Access. In its annual survey this year, Education Week magazine ranked California 47th in per-pupil spending and gave the state a D in academic achievement. ... more TOUGH CIRCUMSTANCES FEDERAL stimulus funds have prevented deeper cuts to a public school system that educates 6.3 million children, of which about a quarter do not speak English well, and nearly half are considered poor under federal guidelines. School districts have already issued layoff notices to more than 30,000 teachers and other employees, and they could issue more dismissal notices this summer, according to the state Department of Education. ... more

Without a strong economic recovery, which few experts predict, the reduced school funding could last for years, shortchanging millions of students, driving away residents and businesses, and darkening California's economic future.

'California used to lead the nation in education,' US Education Secretary Mr Arne Duncan said during a recent visit to San Francisco. 'Honestly, I think California has lost its way, and I think the long-term consequences of that are very troubling.'

Slammed by an epic housing bust and massive job losses, California faces a US$24 billion (S$35 billion) budget deficit and could run out of cash by late July if Governor Arnold Schwarzenegger and the Legislature cannot reach a budget deal.

To balance the budget, the governor has proposed closing more than 200 state parks, releasing prisoners early, selling state property, laying off state workers and cutting health care.

Under the governor's plan, schools and community colleges would lose US$5.3 billion over the coming year - on top of billions of dollars in recent reductions and payment delays.

The state would spend US$7,806 per student in kindergarten to 12th grade in 2009-10, almost 10 per cent less than two years ago, according to the Legislative Analyst's Office. -- AP