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Legislative Advocacy

2019 May Revision to the State Budget

On May 9, 2019, Governor Gavin Newsom released the May Revision to his budget proposal for 2019-20. The May Revision updates the fiscal projections from when the Governor first released his budget proposal in January. The Legislature will continue evaluating and debating these proposals and others before acting on a final budget by June 15.

Overall Budget

In January, the Governor’s Budget reflected moderate economic growth but cautioned that even a moderate recession could result in significant revenue declines. The May Revision includes an increase in General Fund revenues of about $3.2 billion, including increases to reserves and to the Proposition 98 K-14 school funding guarantee.

K-12 Education

In January, the Budget proposed an historic level of funding for K-12 schools, increasing 2019-20 Proposition 98 funding to $80.7 billion--$2.9 billion more than the previous year. The May Revision includes an ongoing increase to the Prop 98 guarantee of $389 million more in 2019-20, and $357 million in one-time adjustment from prior years. 

Highlights include:

  • SB 740 Charter Facilities: The May Revision does not include any new or one-time funding for SB 740 Facility grants, retaining funding at about $138 million for each of the current and budget years.  
  • LCFF Adjustments: A slight reduction of the Cost of Living Adjustment from January (from 3.46% to 3.26%) results in an adjustment to LCFF rates for 2019-20 compared to January.
  • Special Education:  $696.2 million ongoing Proposition 98 General Fund for special education, which is $119.2 million more than proposed in January.
  • Prop 98 Rainy Day Fund:  $389.3 million for the first payment to the Prop 98 rainy day fund as required under Proposition 2.
  • Teacher Retirement Contributions:  The Governor's January Budget proposed $3 billion to reduce employer contributions to CalSTRS from 18.13 percent to 17.1 percent in 2019-20. The May Revision provides an additional $150 million one-time non-Proposition 98 General Fund to further reduce the employer contribution rate to 16.7 percent in 2019-20.
  • Teacher Support: $89.8 million one-time non-Proposition 98 General Fund to provide an estimated 4,500 loan assumptions and $44.8 million one-time non-Proposition 98 General Fund to provide training and resources for classroom educators to build capacity around inclusive practices.
  • Categorical Program COLA: A decrease of $7.4 million Proposition 98 General Fund to selected categorical programs for 2019-20 to reflect a change in the cost-of-living factor from 3.46 percent at the Governor's Budget to 3.26%.
Charter Accountability

The May Revision outlines a new proposal for charter schools that reinforces the goals of current law related to equal access for all students. Specifically, the May Revision includes a Trailer Bill proposal that requires charters to serve all students and prohibits student discrimination. The bill also mandates that charter schools must notify parents of these rights, as specified, as well as their right to report concerns to their authorizer.