School K-12 Funding in the Governor’s May, 2020 Proposed Budget Revise
The May Revision includes total funding of $99.7 billion ($47.7 billion General Fund and $52 billion other funds) for all K-12 education programs.
Federal Funds: a one-time investment of $4.4 billion ($4 billion federal Coronavirus Relief Fund and $355 million federal Governor’s Emergency Education Relief Fund) to local educational agencies, including an earlier start date for the next school year.
Retirement contributions relief: re-direct long term pension funding from the last fiscal year in order to reduce the CalSTRS employer rate from 18.41 percent to approximately 16.15 percent in 2020-21 and from 18.2 percent to 16.02 percent in 2021-22.
The following proposals are withdrawn from the Governor’s Budget:
• Educator Workforce Investment Grants: $350 million
• Opportunity Grants: $300.3 million
• Community Schools Grants: $300 million
• Special Education Preschool Grant: $250 million
• Workforce Development Grants: $193 million
• Teacher Residency Program: $175 million
• Credential Award Program: $100 million
• Child Nutrition Programs: $70 million
• Classified Teacher Credential Program: $64.1 million
• Local Services Coordination (CCEE): $18 million
• Computer Science Supplementary Authorization Incentive: $15 million
• Online Resource Subscriptions for Schools: $2.5 million
• California College Guidance Initiative: $2.5 million
• Computer Science Resource Lead: $2.5 million
• School Climate Workgroup: $150,000
• Additionally, the May Revision suspends the statutory cost-of-living adjustment of 2.31 percent in 2020-21 for all eligible programs.
Absent additional federal funds, the COVID-19 Recession requires a 10 percent ($6.5 billion) reduction to LCFF. This reduction includes the elimination of a 2.31 percent cost-of-living adjustment. This reduction will be eliminated if the federal government provides sufficient funding to backfill this cut.
Absent additional federal funds, the May Revision includes the following Proposition 98 reductions to K-12 categorical programs, totaling $352.9 million:
• After School Education and Safety: $100 million
• K-12 Strong Workforce Program: $79.4 million
• Career Technical Education Incentive Grant Program: $77.4 million
• Adult Education Block Grant: $66.7 million
• California Partnership Academies: $9.4 million
• Career Technical Education Initiative: $7.7 million
• Exploratorium: $3.5 million
• Online Resource Subscriptions for Schools: $3 million
• Specialized Secondary Program: $2.4 million
• Agricultural Career Technical Education Incentive Grant: $2.1 million
• Clean Technology Partnership: $1.3 million
STATE PRESCHOOL Absent additional federal funds, the COVID-19 Recession makes the following reductions necessary to balance the state budget. These reductions will be eliminated if the federal government provides sufficient funding to restore them:
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• $159.4 million General Fund to eliminate 10,000 slots scheduled to begin April 1, 2020 and 10,000 additional slots scheduled to begin April 1, 2021.
• $130 million Proposition 98 General Fund to align State Preschool funding with demand.
• $94.6 million Proposition 98 General Fund and $67.3 million General Fund to reflect a 10 percent decrease in the State Preschool daily reimbursement rate.
• $20.5 million Proposition 98 General Fund and $11.6 million General Fund to reflect suspension of a 2.31 percent cost-of-living adjustment.
• $3.3 million Proposition 98 General Fund and $3 million General Fund to eliminate a 1 percent add-on to the full-day State Preschool reimbursement rate.
CHILD CARE Absent additional federal funds, the COVID-19 Recession makes the following reductions necessary to balance the state budget. These reductions will be eliminated if the federal government provides sufficient funding to restore them:
• $363 million one-time General Fund and $45 million one-time federal Child Care and Development Block Grant funds for child care workforce and infrastructure.
• $223.8 million General Fund to reflect a 10 percent decrease in the Standard Reimbursement Rate and the Regional Market Rate.
• $35.9 million General Fund to reflect lower caseload estimates in CalWORKs Stage 2 and Stage 3 child care.
• $25.3 General Fund to reflect suspension of a 2.31 percent cost-of-living adjustment.
• $10 million one-time General Fund for child care data systems