The Legislative Analyst’s Office recently published their updated forecast, which shows a record-breaking increase in revenues. Driven by the “big three” (personal income tax, sales, and corporate income tax), the additional funds will likely create complications for State spending as it relates to the Gann Limit.

However, State politicians are all chiming in with agreements to increase funding for education. According to the Senate’s plan “Putting California’s Wealth to Work,” details for PK-12 Education include:

EARLY CARE AND EDUCATION

• Secure Child Care Workforce. $1 Billion ongoing to increase provider reimbursement rates to the 90th percentile of the regional market rate, with additional funds to support improved benefits for the childcare workforce.
• Continue Family Fee Waivers & Provider Hold Harmless Policies. $245 million to keep childcare affordable for families and ensure providers have stable funding.
• Invest in Infrastructure and Workforce. $445 million for child care facilities expansion and infrastructure investments, and professional development and workforce support.
• Stabilize and Support California State Preschool. Increases eligibility for low-income children, increase rate adjustment factors to support Preschool providers and provide planning funds for long-term investments in our early education system.

K-12 EDUCATION

• Statutory Ongoing K-12 Discretionary Funding Increases. $5 billion, growing to$10 billion by 2024-25, for permanent ongoing supplemental base increases for K-12 general purpose funding, allowing flexibility in event policy changes related to enrollment or ADA-based funding are made.
• COVID Caused Education Challenges. $10 billion in one-time funds, allocated over multiple years, to combat impacts of COVID, including: protecting staffing levels and addressing learning loss and wellness.
• Home-to-School Transportation. Ends the charging for school bus rides; eliminates parent-owed debts; and begins phasing in to universal Home-to-School transportation.
• School Facilities and Deferred Maintenance. $4.5 billion over three years, above the Governor’s proposal, for school facilities, and $1 billion for K-12 deferred maintenance.

Here are a two additional sources of good information:

1. Ed Source “Senate, Assembly agree California schools should receive billions more in unrestricted funding.” by John Fensterwald
2. CA State Senate Budget Plan slideshow.

TRiGroup’s Advice

1. Communicate clearly and succinctly to your Board, Staff, and Community. When proposals are floated about spending more money, people often consider it to be a done-deal. Of course, these are all just proposals, and the final budget will be adopted later.
2. Be prepared to plan once the actual budget is passed. There will undoubtedly be more funding coming to PK-12 education and now is the time to have options available that have been vetted with various constituents.