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January 28, 2022 - In his January budget, the Governor proposes to provide a 5.33 percent cost-of-living adjustment to the Local Control Funding Formula (LCFF) and change the formula to soften the impact of declining attendance on school districts. In this post, we provide background on LCFF, describe and assess the Governor’s proposals, and provide our recommendations to the Legislature.
January 27, 2022 - This analysis describes the overall structure of the Governor's plan for school and community college funding, including the major spending proposals and underlying estimates of the Proposition 98 minimum guarantee.
January 13, 2022 - On January 10, 2022, Governor Newsom presented his proposed state budget to the Legislature. In this report, we provide a brief summary of the proposed budget based on our initial review. In the coming weeks, we will analyze the plan in more detail and release several additional budget analyses.
Update (1/21/22): Includes a corrected estimate of Governor’s Budget proposals that are excludable under the State Appropriations Limit (SAL).
January 6, 2022 - The University of California (UC) operates Agricultural Experiment Stations and Cooperative Extension—two programs that together focus on research and outreach involving agriculture and natural resource issues. This report provides an overview of these programs—discussing their statutory origin, structure, employees, and budget. The report also raises a few concerns with the state’s oversight of these programs and concludes by providing recommendations to enhance oversight.
December 17, 2021 - This brief provides background on the state’s current funding allocation formula for special education, describes funding formulas used in other states, establishes a framework for evaluating these formulas, and offers some issues for the Legislature to consider.
December 17, 2021 - This post summarizes the state’s 2021-22 spending package for child care and preschool. It is part of our Spending Plan series, which contains posts focused on each major sector of the state budget.
December 10, 2021 - This post describes the mental health services available to students attending California’s public colleges and universities, highlights recent developments in student mental health since the start of the pandemic, and assesses the data currently available on student mental health issues. It concludes with a recommendation to enhance related reporting requirements applying to the three public higher education segments.
November 30, 2021 - Assembly Committee on Education and Assembly Budget Subcommittee No. 2 on Education Finance
November 30, 2021 - Assembly Committee on Education and Assembly Budget Subcommittee No.2 on Education Finance
November 18, 2021 - This post provides an update on the progress of the California State Teachers’ Retirement System (CalSTRS) funding plan. The post: (1) describes the changes to unfunded actuarial obligation and contribution rates in 2021-22, based on the most recent actuarial valuation; (2) describes the potential effects of the 2020-21 investment returns; and (3) revisits the recommendations we raised in our March 2021 publication, Strengthening the CalSTRS Funding Plan, using the extreme volatility in investment returns to illustrate how those recommendations would strengthen CalSTRS’ ability to successfully pay down unfunded actuarial obligation—both the state’s share and employers’ share—by 2046.
November 17, 2021 - Each year, the state calculates a “minimum guarantee” for school and community college funding based upon a set of formulas established by Proposition 98 (1988). Based upon revenue projections that are significantly above the June 2021 estimates, we estimate the guarantee in 2022‑23 is $11.6 billion (12.4 percent) above the 2021‑22 enacted budget level. After accounting for various adjustments—backing out one‑time expenditures, funding a 5.35 percent cost‑of‑living adjustment, and making required reserve deposits—we estimate that $9.5 billion is available for new commitments. In addition, we estimate that $10.2 billion in one‑time funding is available due to increases in the guarantee in 2020‑21 and 2021‑22. In total, we estimate nearly $20 billion is available to allocate in the upcoming budget cycle. To help the Legislature prepare to allocate this funding, we outline several options that would build upon existing programs, expand services in targeted ways, and address future costs and uncertainties.
November 8, 2021 - Assembly Budget Subcommittee No. 2 on Education Finance
October 25, 2021 - This post summarizes overall Proposition 98 funding and K-12 education spending in the 2021-22 budget package. It is part of our Spending Plan series, which contains posts focused on each major sector of the state budget.