One of the governor's more creative-- and controversial-- ideas for helping balance the state budget has been rejected by lawmakers in the Assembly.

Governor Schwarzenegger's plan to shift the state's contribution to the California State Teachers Retirement System (STRS) to local school districts might have saved as much as $500 million in the coming budget year.

But since its introduction in January, critics have said the plan would place a new burden on local schools that are already strapped for cash, while also leaving the door open that local officials might decide to simply not put the money into the CalSTRS system at all.

Earlier today, the Assembly Budget Subcommittee on Education voted to reject the proposal, with Democrats complaining that it would have made it even harder for schools to spend more on students.