* Requires supplemental payments to local school districts and community colleges to address recent budget cuts.
* Annual payments begin in 2011-12.
* Payments are funded from the state's Budget Stabilization Fund until the total amount has been paid.
* Payments to local school districts will be allocated in proportion to average daily attendance and may be used for classroom instruction, textbooks and other local educational programs.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

* Fiscal impact would depend on how current constitutional provisions would otherwise be interpreted.
* Potential state savings of up to several billion dollars in 2009-10 and 2010-11.
* Potential state costs of billions of dollars annually thereafter.