. >> and later we will talk about scott sha scott schafer thinks the budget will mean. a national effort aimed at raising the standard of living for the poorest of us. there was a sobering report released. nearly half of all children in california live in poor or low income families. scott sat down with the president of children now. >> ted, welcome. >> thank you. >> this latest report card covers 25 different areas of children's health and welfare. there's a lot of cs and ds. this is not a report card that you would run home and brag to your parts about. what bothers you most about the status of kids in california today? >> it's not a great report cashcard. if we are going to want the economy that we want in the years to come, we have to make sure that all the children are getting a good education. when you see that they are not meeting standards in math and reading, we have troubles in years ahead if we do not turn it around. >> how much of it is a funding issue? california has not funded the school as it should be, perhaps. is that it or is it more than that? >> it's