January 2018

Proposition 98 Overview

Governor's Budget Contains $6.3 Billion in Proposition 98 Spending Proposals

(In Millions)

Preschool  
Ongoing  
Increase Standard Reimbursement Rate by 3 percent $32 
Provide 2.51 percent cost-of-living adjustment (COLA) 28 
Add 2,959 full-day slots starting April 1, 2019 8 
Subtotal ($68)
One Time  
Fund early education expansion grants $125 
Total Preschool ($193)
K-12 Education  
Ongoing  
Fund full implementation of LCFF $2,883 
Provide 2.51 percent COLA for some categorical programsa 106 
Provide county and regional support for low-performing districts 70 
Augment funding for Charter School Facility Grant program 28 
Support the California Collaborative for Educational Excellence 7 
Provide additional funding for Student Friendly Services 1 
Subtotal ($3,095)
One Time  
Provide per-student discretionary grants $1,757 
Establish special education teacher residency program 50 
Provide grants for addressing special education teacher shortage 50 
Support Southern California Regional Occupational Center 3 
Subtotal ($1,860)
Total K-12 Education ($4,954)
California Community Colleges  
Ongoing  
Fund high school CTE initiative through Strong Workforce program $212 
Hold districts harmless for transition to new apportionment formula 175 
Provide 2.51 percent COLA for apportionments 161 
Fund 1 percent enrollment growth 60 
Fund AB 19 fee waivers for first-time full-time students 46 
Fund consolidated financial aid program 33 
Provide 2.51 percent COLA for some student support programsb 33 
Provide ongoing support for new online college 20 
Increase funding for Apprenticeship Programs 14 
Fund adult education data system alignment 5 
Subtotal ($759)
One Time  
Fund deferred maintenance and instructional equipment $275 
Fund start-up costs for new online college 100 
Provide additional funding for prior-year Apprenticeship costs 31 
Fund Innovation Awards 20 
Fund certified nursing assistant program 2 
Subtotal ($428)
Total Community Colleges ($1,186)
Total Spending Proposals $6,333 
Note: Total spending consists of $3.1 billion from growth in the 2018-19 Proposition 98 guarantee, $2.2 billion from the expiration of one-time prior-year initiatives, $687 million from an increase in the 2017-18 guarantee, $214 million from unspent prior-year funds, $100 million from a settle-up payment related to the 2009-10 guarantee (scored as a Proposition 2 debt payment), and $37 million from various technical adjustments.
a Applies to special education, preschool, child nutrition, mandates block grant, services for foster youth, adults in correctional facilities, and American Indian education.
b Applies to Extended Opportunity Programs and Services, Disabled Students Programs and Services, CalWORKs student services, and the campus child care support. Includes a 4.1 percent COLA for the Adult Education Block Grant.
LCFF = Local Control Funding Formula. CTE = Career Technical Education.