California

FUNDING PRIORITIES FOR P-12

For this year's state budget, the State of California approved Proposition 98 (a minimum funding guarantee amendment that determines general funding for education) resulting in a funding increase of $2.6 billion over the 2016 level to $74.5 billion. This increase included $50 million in Prop 98 Funds to increase provider reimbursement rates for After School and Education Safety Programs. It also provides $41.3 million in one time funds for teacher recruitment and development programs funded by Proposition 98 General Funds ($30 million) and Federal Title II funds ($11.3 million).

Twenty-five million dollars in one-time Prop 8 General Funds have been earmarked to support the California Classified School Employees Credentialing program, which provides grants to K-12 agencies to support recruitment of noncertified employees to participate in California teacher preparation programs. Districts will also see an increase in $5 million in one-time Prop 8 General Funds for competitive grants to support professional development for teacher and paraprofessional providing bilingual and multilingual instruction. The state approved a total of $57.3 billion in Local Control Funding Formula (LCFF) Funding and an additional $1.4 billion towards the implementation of the Local Control Funding Formula (in its fifth year) which will result in LCFF being 97% completely implemented.

The state will provide an increase of an additional $7 million in LCFF resource augmentation funds for County Office of Educations to support Local Control and Accountability Plan review and technical assistance workload and an increase of $3.5 million Prop 98 General Funds to reflect Cost of Living Adjustments for a K-12 mandate block grant. A total of $76.9 million was appropriated to fund a 1.56% Cost of Living Adjustment for several categories programs (e.g., Special Education, Foster Youth) external to LCFF.

Proposition 98 will also provide an increase of $2.5 million in one-time General Funds to support local education agencies in their promotion of equity in California schools; an increase of $10 million in one-time funds to provide additional services for refugee student support; an increase of $1.5 million onetime Prop 98 General Fund to promote the purchase of California-grown food and ingredients by schools. The state will also provide authorization of repayment to local education agencies for expenditure audits for projects funded under the School Facilities Programs.

Additionally, the state will provide an increase of $92.7 million in General Fund dollars to increase reimbursement rate for State preschool and other contracted child care providers given to the state minimum wage increase; an increase of $25 million non Prop 98 General Fund to update income eligibility requirements for state-subsidized child care and development programs; and an increase of $7.9 million in Prop 98 General Fund to provide access to full day State Preschool for low income families.

CHANGES TO FUNDING FORMULA FOR P-12

In 2014-15, the K-12 sector transitioned to the LCFF, which provides more discretion for local school board operating budgets than the old funding formula. It allocates base amounts to schools, with additional concentrated funding to students from English learner, low income, and foster youth backgrounds. The recently (2013-14) adopted formula is California's primary vehicle for distributing funds to their K-12 public schools.

STATE ISSUES AFFECTING P-12 FUNDING

Revenue boosts from both local property taxes and the General Fund, including sources from Proposition 30 (a temporary income tax approved by voters in 2012 to tax residents with annual income of over $250,000 for seven years and state sales tax increase of 0.25 % over four years), coupled with a 2% increase in job growth last year, allowed the state to operate with increased funding for education, even though economic growth has slowed down. There is also an increase of $40.6 million in non-Proposition 98 General Fund dollars to increase reimbursement ceiling for voucher-based child care providers.

FORCES DIVERTING FUNDS FROM TRADITIONAL PUBLIC SCHOOL DISTRICTS

The per student funding rate increased to $1,117 and provided ongoing cost of living adjustment for the Charter School Facility Grant Program. [End...