On January 8, 2021, Governor Gavin Newsom released his budget proposal for the 2021- 22 fiscal year.
CCSA will be advocating on your behalf during the upcoming budget committee hearings and we will keep you up to date as new budget information becomes available.
Here are some highlights of the Governor’s plan:
The budget contains $164.5 billion in General Fund expenditures in 2021-22, including $85.8 billion for TK-14 education under the Proposition 98 school funding guarantee. The budget proposal also contains a comprehensive mid-year adjustment proposal related to COVID relief across various sectors of state government, including $3 billion for various economic recovery proposals and $2 billion for K-12 education. The Governor requests that the legislature take urgent action to enact these mid-year adjustments as soon as possible.
The Governor’s proposal contains a significant one-time general fund revenue increase in the current fiscal year of which $13.8 billion would be allocated to K-14 education under the Proposition 98 guarantee. The Governor proposes to use these one-time Proposition 98 funds for the following:
- $2 billion dollars for COVID-relief grants to establish incentives for school reopening. Grants would provide $450-700 per pupil, in accordance with LCFF supplemental grant counts and priority will be for onsite learning for early learners in TK-5th grade and students at-risk. However, this proposal unfairly excludes nonclassroom-based charter schools.
- $9.2 billion to buy-back approximately two-thirds of the apportionment deferrals enacted last year. $3.7 billion in continuing deferrals would be retained.
- In addition, approximately $6.7 billion will be provided to K-12 schools from the federal relief package approved in December. These funds will be allocated based on schools’ Title I counts.
For 2021-22, the budget projects a Proposition 98 guarantee of $85.8 billion, which is $14.9 billion over the budgeted guarantee for 2020-21. The Governor assumes that schools will resume onsite operations in 2021-22 school year, and therefore additional hold-harmless measures will not be necessary. The Governor proposes the following adjustments for schools in the 2021-22 fiscal year:
- A 3.84 percent Cost of Living Adjustment (COLA) to the Local Control Funding Formula (LCFF), which represents a compounded COLA of the deferred 2019-20 COLA and the statutory COLA for 2021-22.
- A 1.5 percent COLA for non-LCFF categorical programs such as special education, mandate block grants, nutrition and childcare.
- $4.6 billion for one-time grants for targeted strategies that address learning loss such as extended year, before and after school programs and summer school.
- $500 million in one-time funds for a package of teacher supports for professional development and pipeline programs.
- $300 million for special education early intervention.
- $141 million for the SB 740 Charter School Facility Grant Program.
Additional policy proposals include:
- Adult in Charters: The Governor proposes to increase accountability and clarity on “exclusive partnerships” that allow charters to serve adults. The proposal would hold harmless schools operating in 2019-20 at their current enrollment levels.
- LCFF: The budget proposal includes a new requirement that carryover of LCFF supplemental funds must be used for their original purpose to improve services for high need students.