At key times during the state's budget cycle, we post tables containing important information about the education parts of the budget. This May posting reflects the 2016-17 May Revision proposals. The tables cover Proposition 98, K-12 education, child care and preschool, higher education, and student financial aid.


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May 17, 2016

EdBudget Tables

Proposition 98 Overview K-12 Education Child Care and Preschool Higher Education

PROPOSITION 98 OVERVIEW

Tracking Changes in Estimates of Proposition 98 Minimum Guaranteea

(In Millions)

June 2015

January 2016

May 2016

Change From January 2016

Change From June 2015

2014-15

$66,303

$66,690

$67,153

$463

$850

2015-16

68,409

69,175

69,050

-125

641

2016-17

—

71,585

71,874

288

3,465b

aReflects budget act estimates for June 2015 and administration’s estimates for January 2016 and May 2016.

bReflects change from June 2015 estimate of 2015-16 minimum guarantee. Increase is 5.1 percent.

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Changes in General Fund Tax Revenue and Proposition 98 General Funda

(In Millions)

Governor’s Budget

May Revision

Change

2014-15

General Fund tax revenue

$111,975

$112,448

$474

Proposition 98 General Fund

49,554

50,029

475

2015-16

General Fund tax revenue

$120,205

$118,516

-$1,688

Proposition 98 General Fund

49,992

49,773

-218

2016-17

General Fund tax revenue

$124,154

$123,222

-$933

Proposition 98 General Fund

50,972

51,105

133

aThe Proposition 98 minimum guarantee is met using state General Fund and local property tax revenue. “Proposition 98 General Fund” refers to the amount of the guarantee covered by state General Fund.

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Changes in Proposition 98 Funding By Segment and Source

(In Millions)

Governor’s Budget

May Revision

Change

2014-15 Minimum Guarantee

$66,690

$67,153

$463

By Segment:

Schools

$59,330

$59,742

$412

Community colleges

7,281

7,331

51

Othera

80

80

—

By Fund Source:

General Fund

$49,554

$50,029

$475

Local property tax

17,136

17,124

-12

2015-16 Minimum Guarantee

$69,175

$69,050

-$125

By Segment:

Schools

$61,096

$60,984

-$112

Community colleges

7,997

7,983

-14

Othera

82

82

—

By Fund Source:

General Fund

$49,992

$49,773

-$218

Local property tax

19,183

19,276

93

2016-17 Minimum Guarantee

$71,585

$71,874

$288

By Segment:

Schools

$63,244

$63,496

$252

Community colleges

8,259

8,295

36

Othera

83

83

—

By Fund Source:

General Fund

$50,972

$51,105

$133

Local property tax

20,613

20,769

156

aIncludes funding for instructional services provided by the State Special Schools, California Department of Corrections and Rehabilitation, and Department of Developmental Services.

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2015-16 Proposition 98 Spending Changes

(In Millions)

Governor’s Budget

May Revision

Change

2015-16 Budget Act Spending

$68,409

$68,409

—

Technical Adjustments

Make LCFF adjustments

-$91

-$35

$56

Other

43

-61

-104

Subtotals

(-$48)

(-$96)

(-$48)

Policy Changes

Pay down K-12 mandate backlog

$681

$586

-$95

Pay down CCC mandate backlog

73

76

3

Fund CTE Incentive Grant program

60

—

-60

Backfill CCC for lower than projected property tax revenuea

—

39

39

Backfill special education for lower than projected property tax revenuea

—

29

29

Provide CCC with technology infrastructure funding (one time)

—

7

7

Subtotals

($814)

($737)

(-$78)

Total Changes

$766

$641

-$125

2015-16 Revised Spending

$69,175

$69,050

-$125

aIf backfill amounts exceed actual property tax shortfalls, CCC Chancellor’s Office directed to use excess funds for CCC mandate backlog. Excess funds for special education would revert.

LCFF = Local Control Funding Formula and CTE = career technical education.

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2016-17 Proposition 98 Spending Changes

(In Millions)

Governor’s Budget

May Revision

Change

2015-16 Revised Proposition 98 Spending

$69,175

$69,050

-$125

Technical Adjustments

Remove prior-year one-time payments

-$1,446

-$1,301

$145

Make other adjustments

-115

-152

-36

Adjust categorical programs for changes in attendance

-16

-21

-6

Make LCFF adjustments

101

175

74

Annualize funding for previously approved preschool slot increases

31

31

—

Subtotals

(-$1,445)

(-$1,268)

($177)

K-12 Education

Increase LCFF funding

$2,825

$2,979

$154

Fund CTE Incentive Grant for Secondary Schools (year two of three)a

240

300

60

Provide COLA for select categorical programsb

23

—

-23

Fund truancy and dropout prevention program

7

10

3

Fund High Speed Networkc

5

5

—

Revise estimate of energy-efficiency funds

52

85

33

Support Exploratorium

4

4

—

Fund improvement of web-based tools for state accountability system

1

1

—

Remove augmentation for infants and toddlers with disabilities

-30

-30

—

Fund COEs for implementation of new Early Education Block Grant

—­

10

10

Support Student Friendly Services

—

2

2

Subtotals

($3,125)

($3,365)

($239)

California Community Colleges

Implement workforce recommendations of BOG task force

$200

$200

—

Fund deferred maintenance and instructional equipment (one time)

255

189

-$66

Fund 2 percent enrollment growth

115

115

—

Provide apportionment increase (above growth and COLA)

—

75

75

Make CTE Pathways Initiative ongoing

48

48

—

Augment Basic Skills Initiative

30

30

—

Fund Innovation Awards at community colleges (one time)

25

25

—

Revise estimate of energy-efficiency funds

6

11

4

Increase funding for Institutional Effectiveness Initiative

10

10

—

Augment technology infrastructure funding

—

5

5

Fund technical assistance to adult education consortia (one time)

—

5

5

Fund development of “zero-textbook-cost” degree programs (one time)

5

5

—

Provide instructional materials for incarcerated adults

—

3

3

Improve systemwide data security

3

3

—

Extend Full-Time Student Success Grant to Cal Grant C recipients

—

2

2

Increase apprenticeship reimbursement rate

2

2

—

Provide COLAb

31

—

-31

Subtotals

($730)

($728)

(-$2)

Total Changes

$2,410

$2,824

$414

2016-17 Proposed Spending

$71,585

$71,874

$288

aGovernor’s budget includes $60 million in 2015-16 funding for this purpose.

bCOLA rate was estimated at 0.47 percent in January and finalized at zero in May.

cBudget also includes $3.5 million in one-time funding for this purpose.

LCFF = Local Control Funding Formula; CTE = career technical education; COLA = cost-of-living adjustment; COE = county office of education; and BOG = Board of Governors.

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Proposed Funding for Education Mandates Backlog

(In Millions)

Governor’s Budget

May Revision

Change

K-12 Education

Pay down scored to:

2014-15

$339

$635

$296

2015-16

681

586

-95

Settle up

229

194

-35

Othera

32

—

-32

Subtotals

($1,281)

($1,416)

($135)

California Community Colleges

Pay down scored to:

2014-15

$3

$29

$26

2015-16

73

76

3

Subtotals

($76)

($106)

($29)

Totals

$1,357

$1,521

$164

aPrior-year unspent funds.

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Key Proposition 98 Information Underlying May Revision

(Dollars in Millions)

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Minimum Guarantee

General Fund

$50,029

$49,773

$51,105

$52,416

$52,034

$53,301

Local property tax

17,124

19,276

20,769

22,050

23,322

24,639

Total Guarantees

$67,153

$69,050

$71,874

$74,466

$75,356

$77,939

Inputs

General Fund taxesa

$112,448

$118,516

$123,222

$127,585

$128,677

$133,178

K-12 average daily attendance

5,981,713

5,977,223

5,966,068

5,961,800

5,945,458

5,941,669

State civilian population

38,750,025

39,098,266

39,444,353

39,789,683

40,132,904

40,475,897

Growth Factors

Per capita personal income

-0.2%

3.8%

5.4%

4.9%

3.9%

3.5%

Per capita General Fundb

10.4

5.0

3.6

3.1

0.5

3.1

K-12 average daily attendance

-0.2

-0.1

-0.2

-0.1

-0.3

-0.1

State civilian population

0.9

0.9

0.9

0.9

0.9

0.9

Assessed property values

6.1

5.9

6.2

5.8

5.7

5.4

K-14 cost-of-living adjustment

0.9

1.0

—

1.1

2.4

2.7

Outcomes

Proposition 98 operative “test”

1

2

3

3

3

3

Spike protection effectc

-$1,009

—

—

—

—

—

Test 3 supplemental payment

—

—

$502

$387

$728

$279

Maintenance factor:

Amount created/paid (+/-)

-5,679

-$379

746

884

1,797

—

Amount outstanding

514

155

908

1,837

3,700

3,827

PSSSA Deposit?

—

No

No

No

No

No

aReflects General Fund revenue that affects the calculation of the minimum guarantee.

bReflects per capita General Fund plus 0.5 percent (one of the Test 3 factors).

cDue to a revenue spike in 2014-15, a portion of the increase in the 2014-15 minimum guarantee is backed out from the calculation of the minimum guarantee moving forward.

PSSSA = Public School System Stabilization Account.

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Key Proposition 98 Information Underlying LAO Forecast

(Dollars in Millions)

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Minimum Guarantee

General Fund

$50,235

$49,659

$50,973

$52,553

$52,835

$53,389

Local property tax

17,117

19,392

21,007

22,390

23,642

24,778

Total Guarantees

$67,352

$69,051

$71,979

$74,943

$76,477

$78,167

Inputs

General Fund taxesa

$112,658

$118,485

$123,393

$129,701

$132,327

$135,325

K-12 average daily attendance

5,981,713

5,972,805

5,956,678

5,939,701

5,913,566

5,894,938

State civilian population

38,750,025

39,098,266

39,440,742

39,758,017

40,063,426

40,364,205

Growth Factors

Per capita personal income

-0.2%

3.8%

5.4%

4.4%

6.2%

5.4%

Per capita General Fundb

10.6

4.7

3.7

4.8

1.8

2.0

K-12 average daily attendance

-0.2

-0.2

-0.3

-0.3

-0.4

-0.3

State civilian population

0.9

0.9

0.9

0.8

0.8

0.8

Assessed property values

6.1

5.9

6.6

5.9

5.7

5.3

K-14 cost-of-living adjustment

0.9

1.0

—

1.8

2.4

2.3

Outcomes

Proposition 98 operative “test”

1

2

3

2

3

3

Spike protection effectc

-$1,078

—

—

—

—

—

Test 3 supplemental payment

—

—

$540

—

$558

$410

Maintenance factor:

Amount created/paid (+/-)

-5,802

-$249

583

—

2,770

2,159

Amount outstanding

391

157

748

$779

3,593

5,933

PSSSA Deposit?

—

No

No

No

No

No

aReflects General Fund revenue that affects the calculation of the minimum guarantee.

bReflects per capita General Fund plus 0.5 percent (one of the Test 3 factors).

cDue to a revenue spike in 2014-15, a portion of the increase in the 2014-15 minimum guarantee is backed out from the calculation of the minimum guarantee moving forward.

PSSSA = Public School System Stabilization Account.

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Comparing Administration’s and LAO’s Estimates of the Minimum Guarantee

(In Millions)

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

May Revision

General Fund

$50,029

$49,773

$51,105

$52,416

$52,034

$53,301

Local property tax

17,124

19,276

20,769

22,050

23,322

24,639

Total Guarantees

$67,153

$69,050

$71,874

$74,466

$75,356

$77,939

LAO Forecast

General Fund

$50,235

$49,659

$50,973

$52,553

$52,835

$53,389

Local property tax

17,117

19,392

21,007

22,390

23,642

24,778

Total Guarantees

$67,352

$69,051

$71,979

$74,943

$76,477

$78,167

Difference

General Fund

$206

-$115

-$132

$137

$800

$88

Local property tax revenue

-7

115

237

340

320

139

Total Differences

$199

$1

$106

$477

$1,121

$227

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Comparing Proposition 98 Property Tax Revenue Estimates

(In Millions)

Governor’s Budget to May Revision

2015-16

2016-17

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Total local property tax revenue

$19,183

$19,276

$93

$20,613

$20,769

$156

Base property tax revenue

18,306

18,221

-85

19,391

19,385

-5

Ongoing RDA revenue shift

1,008

1,167

159

1,045

1,240

196

ERAF

448

503

55

859

862

3

Sales of RDA assets

116

126

10

10

11

1

Excess tax revenue

-695

-740

-45

-690

-729

-39

May Revision to LAO May Outlook

2015-16

2016-17

May Revision

May LAO

Change

May Revision

May LAO

Change

Total local property tax revenue

$19,276

$19,392

$115

$20,769

$21,007

$237

Base property tax revenue

18,221

18,201

-19

19,385

19,426

41

Ongoing RDA revenue shift

1,167

1,212

45

1,240

1,297

57

ERAF

503

616

113

862

1,106

245

Sales of RDA assets

126

158

33

11

52

40

Excess tax revenue

-740

-795

-56

-729

-874

-145

RDA = redevelopment agency and ERAF = Educational Revenue Augmentation Fund.

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Year-Over-Year Growth in Proposition 98 Property Tax Revenue

(Dollars in Millions)

2015-16

2016-17

Change

Percent

May Revision

Total local property tax revenue

$19,276

$20,769

$1,493

8%

Base property tax revenue

18,221

19,385

1,164

6

Ongoing RDA revenue shift

1,167

1,240

73

6

ERAF

503

862

359

71

Sales of RDA assets

126

11

-114

-91

Excess tax revenue

-740

-729

10

-1

LAO May Outlook

Total local property tax revenue

$19,392

$21,007

$1,615

8%

Base property tax revenue

18,201

19,426

1,224

7

Ongoing RDA revenue shift

1,212

1,297

86

7

ERAF

616

1,106

490

80

Sales of RDA assets

158

52

-107

-67

Excess tax revenue

-795

-874

-79

10

RDA = redevelopment agency and ERAF = Educational Revenue Augmentation Fund.

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K-12 EDUCATION

2016-17 K-12 Proposition 98 Spending Changes

(In Millions)

Governor’s Budget

May Revision

Change

2015-16 Revised Spending

$61,178

$61,066

-$112

Technical Adjustments

-$977

-$852

$125

Policy Proposals

Increase LCFF funding

$2,825

$2,979

$154

Fund CTE Incentive Grant for Secondary Schools

240a

300

60

Revise estimate of energy-efficiency funds

52

85

33

Fund truancy and dropout prevention program

7

10

3

Fund COEs for implementation of new Early Education Block Grant

—

10

10

Fund High Speed Network

5b

5b

—

Support Exploratorium

4

4

—

Fund improvement of web-based tools for state accountability system

1

1

—

Support Student Friendly Services

—d

2

2

Provide COLA for select categorical programsc

23

—

-23

Remove augmentation for infants and toddlers with disabilities

-30

-30

—

Subtotals

($3,125)

($3,365)

($239)

Total Changes

$2,148

$2,513

$364

2016-17 Proposed Spending

$63,326

$63,579

$253

aAlso included $60 million in 2015-16 funding for this purpose.

bAlso includes $3.5 million in one-time funding for this purpose.

cCOLA rate was estimated at 0.47 percent in January, finalized at zero in May.

dGovernor’s budget proposed $1 million in prior-year funds.

LCFF = Local Control Funding Formula; CTE = Career Technical Education; COE = county office of education and COLA = cost-of-living adjustment.

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K-12 Proposition 98 Funding Per Pupil

Governor’s Budget

May Revision

Change

2014-15

$9,933

$10,001

$68

2015-16

10,237

10,217

-20

2016-17

10,605

10,657

52

Year-to-Year Changea

Amount

$369

$440

$72

Percent

3.6%

4.3%

0.7%

aReflects change from 2015-16 to 2016-17.

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Changes in LCFF Funding

(Dollars in Millions)

2015-16 Revised

2016-17

Year-to-Year Changea

Governor’s Budget

May Revision

Change

Base fundingb

$46,433

$52,585

$52,580

-$5

$6,147

Gap funding

6,171

2,889

3,053

163

-3,118

Total Funding

$52,604

$55,475

$55,633

$158

$3,029

Target

$58,266

$58,473

$58,158

-$315

-$108

Gap closure

52.1%

49.1%

54.7%

5.6%

3%

Percent of target level funded

90.3%

94.9%

95.7%

0.8%

5%

aReflects change from the 2015-16 revised level to the 2016-17 May Revision level.

bBase funding reflects total prior-year funding adjusted for changes in student attendance.

LCFF = Local Control Funding Formula.

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Summary of K-12 Education Recommendations

Program

May Revision Proposal

LAO Recommendation

LCFF funding for school districts

Increase by $154 million.

Adopt. Accelerates LCFF implementation.

K-12 mandates backlog

Increase by $135 million.

Modify. Adopt funding level but combine with strategic plan to pay off remainder of backlog.

School Facility Emergency Repair Revolving Loan

Provide $100 million (one time) for new program.

Reject. New program redundant with state’s existing Facility Hardship Grant Program.

LCFF funding for COEs

Increase by $16.5 million ($5.5 million each 2014-15, 2015-16, and 2016-17).

Modify. Change one of the COE LCFF formulas to ensure funding remains connected with the cost of expected COE services.

SACS replacement project

Provide $3 million. (Replaces $7.2 million in combined non-Proposition 98 and federal funds.)

Reject. Direct CDE to work with CDT to progress through initial stages of state review process. Ask agencies to report progress in summer. Signal intent to fund next year once planning phases of project complete.

Dropout and truancy prevention grants (Proposition 47)

Increase by $2.6 million.

Modify. Estimate of available Proposition 47 funds still too low. Allocate funds to schools with the highest concentration of at-risk youth. Provide programmatic flexibility.

California Center on Teaching Careers

Provide $2.5 million (one time) for teacher recruitment.

Modify. Adopt funding level. Require efforts be focused on longstanding teacher shortage areas. Strengthen reporting requirements.

College planning website

Increase by $1 million (for a total of $2 million). Make all $2 million ongoing.

Modify. Approve $750,000 for public side of site. Reject $1.25 million for fee-for-service side of site.

School energy-efficiency projects (Proposition 39)

Increase by $33 million.

Adopt. Increase for projects consistent with revised Proposition 39 revenue estimate.

Integrated Teacher Preparation Programs

Provide $10 million non-Proposition 98 General Fund for one-time incentive grants.

Reject. Barriers to integrated programs unlikely to be overcome by one-time grants.

LCFF = Local Control Funding Formula; COE = county office of education; SACS = Standardized Account Code Structure; CDE = California Department of Education; and CDT = California Department of Technology.

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CHILD CARE AND PRESCHOOL

Child Care and Preschool Budget

(In Millions)

2014-15 Actual

2015-16 Budget Acta

2016-17

Year-Over-Year Change at May Revision

Governor’s Budget

May Revision

Change

Expenditures

CalWORKs Child Care

Stage 1

$311

$410

$394

$394

—b

-$16

Stage 2c

364

414

422

421

-$1

7

Stage 3

223

278

316

274

-42

-5

Subtotals

($899)

($1,103)

($1,132)

($1,089)

(-$43)

(-$14)

Non-CalWORKs Child Care

General Child Cared

$531

$450

$450

$448

-$2

-$2

Alternative Payment

182

251

255

254

-1

3

Migrant

28

29

29

29

—b

—b

Care for Children With Severe Disabilities

2

2

2

2

—b

—b

Infant and Toddler QRIS Grant (one-time)

—

24

—

—

—

-24

Subtotals

($742)

($756)

($736)

($733)

(-$3)

(-$23)

Preschool Programse

State Preschool

$604

$835

—

$873

$873

$39

Transitional Kindergarten

604f

686f

—

726

726

40

Preschool QRIS Grant

50

50

—

50

50

—

Early Education Block Grant

—

—

$1,654g

—

-1,654

—

Early Education Block Grant Implementation for COEs

—

—

—

10h

10

10

Subtotals

($1,258)

($1,571)

($1,654)

($1,659)

($6)

($88)

Support Programs

$73

$76

$79

$88

$9

$12

Totals

$2,972

$3,506

$3,600

$3,569

-$31

$63

Funding

Non-Proposition 98 General Fund

$790

$977

$998

$905

-$93

-$72

Proposition 98 General Fund

1,258

1,571

1,654

1,659

6

88

Federal CCDF

570

573

583

639

56

66

Federal TANF

$353

385

365

365

—b

-20

aReflects Department of Social Services’ revised Stage 1 estimates for cost of care and caseload. Reflects budget act appropriation for all other programs.

bLess than $500,000.

cDoes not include $9.2 million provided to community colleges for certain child care services.

dIn 2014-15, includes funding for all State Preschool wrap slots. Beginning in 2015-16, includes funding for State Preschool wrap slots provided only by non-LEAs.

eSome CalWORKs and non-CalWORKs child care providers use their funding to offer preschool.

fLAO estimate based on average daily attendance in Transitional Kindergarten, as reported by CDE.

gConsists of $878 million shifted from State Preschool, $726 million shifted from Transitional Kindergarten, and $50 million shifted from the Preschool QRIS Grant.

hMay Revision also provides COEs $10 million in one-time Proposition 98 funds scored to 2014-15 for Early Education Block Grant implementation activities.

QRIS = Quality Rating and Improvement System; CCDF = Child Care and Development Fund; TANF = Temporary Assistance for Needy Families; COEs = County Offices of Education; CDE = California Department of Education; and LEA = local education agency.

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2016-17 Child Care and Preschool Funding Changes

(In Millions)

Change

Governor’s Budget

May Revision

Change

Preschool Programs

Shifts funds to/from new Early Education Block Grant (EEBG)a

$1,654

-$1,654

-$3,307

Shifts funds from/to State Preschool, Transitional Kindergarten, and Preschool Quality Rating and Improvement System (QRIS)a

-1,654

1,654

3,307

Provides ongoing funds to county offices of education to implement EEBG

—

10

10

Adjusts Transitional Kindergarten for increases in Local Control Funding Formula

40

40

—

Makes various adjustments to State Preschoolb

40

36

-4

Subtotals

($80)

($85)

($6)

Child Care Programs

Makes CalWORKs caseload and average cost of care adjustments

$18

-$25

-$43

Annualizes funding for Regional Market Rate ceiling increase initiated in 2015-16

9

9

—

Increases funding for quality activities with additional federal funds

3

12

9

Annualizes funding for 5 percent license-exempt rate increase initiated in 2015-16

5

5

—

Adjusts non-CalWORKs child care programs for statutory growth and COLA

4

1

-4

Removes one-time Infant and Toddler QRIS grant funds

-24

-24

—

Subtotals

($15)

(-$23)

(-$38)

Totalsc

$95

$63

-$31

aThe May Revision postpones shifting State Preschool and Transitional Kindergarten funds into the Early Education Block Grant until 2017-18.

bAnnualizes slots initiated in 2015-16 and funds statutory growth and cost-of-living adjustment (COLA).

cGovernor’s budget and May Revision each include technical adjustments of less than $500,000.

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Child Care and Preschool Subsidized Slots

Average Monthly Full-Day Slots, Except for Part Day State Preschool

2014-15 Reviseda

2015-16 Budget Actb

2016-17

Year-Over-Year Change at May Revision

Governor’s Budget

May Revision

Change

CalWORKs Child Care

Stage 1

37,442

44,154

42,995

42,995

—

-1,159

Stage 2c

51,098

50,971

49,777

51,083

1,306

112

Stage 3

33,427

35,845

36,335

34,770

-1,565

-1,075

Subtotals

(121,967)

(130,970)

(129,107)

(128,848)

(-259)

(-2,122)

Non-CalWORKs Programs

General Child Cared

27,359

28,738

42,134

29,063

-13,071

325

Alternative Payment

25,079

32,852

29,344

32,267

2,923

-585

Migrant

3,049

3,060

3,064

3,064

—

4

Care for Children with Severe Disabilities

169

105

98

104

6

-1

Subtotals

(55,656)

(64,755)

(74,640)

(64,498)

(-10,142)

(-257)

Preschool Programs

State Preschool—part day

96,087

98,956

—

108,203

108,203

9,247

State Preschool—full day

50,989

58,504

—

57,644

57,644

-860

Transitional Kindergarten

83,321

83,321e

—

85,500

85,500

2,179

Early Education Block Grant

—

—

251,409f

—

-251,409

—

Subtotals

(230,397)

(240,781)

(251,409)

(251,347)

(-62)

(10,566)

Totals

408,020

436,506

455,156

444,693

-10,463

8,187

aReflects actuals for all stages of CalWORKs, DOF estimates for Migrant child care and Care for Children with Severe Disabilities, CDE estimates for Transitional Kindergarten, and LAO estimates for all other programs.

bReflects DSS estimates for CalWORKs Stage 1; DOF estimates for CalWORKs Stage 2 and 3, Migrant child care, and Care for Children With Severe Disabilities; CDE estimates for Transitional Kindergarten; and LAO estimates for all other programs.

cDoes not include certain community college child care slots (1,300 to 1,800 slots annually).

dState Preschool wrap slots for non-LEAs (funded by General Child Care) are included in State Preschool—full day line in all cases except 2016-17 Governor’s Budget.

eAssumes that participation in Transitional Kindergarten remains flat in 2015-16.

fReflects DOF estimate of number of slots that otherwise would have been funded in State Preschool (165,909) and Transitional Kindergarten (85,500).

DOF = Department of Finance; CDE= California Department of Education; LAO = Legislative Analyst’s Office; DSS = Department of Social Services; and LEA = local education agency.

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Summary of Early Education Block Grant Recommendations

Program Component

May Revision Proposal

LAO Recommendation

Funding for providers during initial years of implementation

Provide funding to school districts based on 2016-17 State Preschool and Transitional Kindergarten funding.

Provide funding to COEs based on 2016-17 State Preschool funding.

Include three-year hold harmless for school districts and COEs.

Redirect funding from non-LEA providers to school districts in the area.

Modify. Include one-year hold harmless provision for districts, then gradually align funding based on the number of low-income and at-risk children in each district.

Decrease non-LEA and COE funding over five years and reallocate funding to districts within each county based on unmet need.

Future funding allocations

Specify future funding would be allocated based on prior-year funding levels and determination of unmet need.

Adopt.

Prioritization of children

Require districts to prioritize funding for low-income and at-risk youth.

Adopt.

Definition of low income

Children who qualify for free or reduced-price meals or state-subsidized child care.

Modify. Define children as low income only if they qualify for free or reduced-price meals.

Definition of at risk

Children who are homeless, at risk of abuse or neglect, foster youth, children with disabilities that affect their learning, and English learners.

Adopt.

Attendance expectations

Require districts to serve at least as many children as they served in 2016-17, adjusted for changes in K-3 attendance.

Modify. Over the long run, adjust attendance expectations to serve as many priority children as possible given available funding.

Program duration

Require programs to operate for a minimum of three hours per day and 180 days per year.

Adopt.

Program standards

Require programs to meet QRIS Tier 4 standards.

Modify. Phase in QRIS standards and rating process over several years. Require independent party evaluate COE-operated programs.

New COE responsibilities

Require COEs to coordinate regional planning, help school districts implement new programs, and provide ongoing technical assistance and professional development opportunities to school districts.

Modify. Require COEs (and CDE) to provide technical assistance under specified conditions.

New COE funding

Provide $20 million ($10 million one time, $10 million ongoing) for additional responsibilities.

Modify. Provide $10 million one-time funding. Make decision on ongoing funding amount in 2017-18 budget.

QRIS funding

Give COEs first priority for $50 million in preschool QRIS block grant funds.

Adopt.

COE = county office of education; LEA = local educational agency; QRIS = Quality Rating and Improvement System; and CDE = California Department of Education.

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HIGHER EDUCATION

Higher Education General Fund Supporta

(Dollars in Millions)

2015-16

2016-17

Year-to-Year Change at May Revision

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Amount

Percent

CCC

$5,813

$5,860

$47

$5,946

$6,034

$88

$174

3%

CSU

3,297

3,297

—

3,484

3,510

26

213

6

UC

3,257

3,259

2

3,467

3,471

4

212

6

CSACb

2,085

1,998

-86

2,254

2,152

-102

153

8

CIRM

369

369

—

274

274

—

-95

-26

Hastings

12

12

—

15

15

—

3

27

Awards for Innovation

—

—

—

25

25

—

25

N/A

Totals

$14,833

$14,796

-$38

$15,465

$15,481

$16

$686

5%

aIncludes General Fund support for retirement, debt service, and deferred maintenance paid from outside higher education agencies’ budgets. Excludes state cost changes in 2016-17 for agencies participating in the California Public Employees’ Retirement System, as these costs have not yet been distributed across agencies’ budgets. For Hastings and CIRM, figures do not reflect May adjustments to general obligation bond debt service.

bIncludes Temporary Assistance for Needy Families support that directly offsets General Fund costs.

CSAC = California Student Aid Commission and CIRM = California Institute for Regenerative Medicine.

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CCC Spending by Source

(In Millions)

Governor’s Budget

May Revision

Change

2014-15 Minimum Guarantee

General Fund

$4,979

$5,025

$46

Local property tax

2,302

2,306

5

Totals

$7,281

$7,331

$51

2015-16 Minimum Guarantee

General Fund

$5,373

$5,422

$48

Local property tax

2,624

2,562

-62

Totals

$7,997

$7,983

-$14

2016-17 Minimum Guarantee

General Fund

$5,447

$5,535

$88

Local property tax

2,812

2,760

-52

Totals

$8,259

$8,295

$36

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2016-17 CCC Proposition 98 Changes

(In Millions)

Governor’s Budget

May Revision

Change

2015-16 Revised Spending

$7,997

$7,983

-$14

Technical Adjustments

-$468

-$416

$52

Policy Proposals

Implement workforce recommendations of BOG task force

$200

$200

—

Fund deferred maintenance and instructional equipment (one time)a

255

189

-$66

Fund 2 percent enrollment growth

115

115

—

Provide apportionment increase (above growth and COLA)

—

75

75

Make CTE Pathways Initiative ongoing

48

48

—

Augment Basic Skills Initiative

30

30

—

Fund Innovation Awards at community colleges (one time)

25

25

—

Revise estimate of energy-efficiency funds

6

11

4

Increase funding for Institutional Effectiveness Initiative

10

10

—

Augment technology infrastructure funding

—

5

5

Fund technical assistance to adult education consortia (one-time)

—

5

5

Fund development of “zero-textbook-cost” degree programs (one time)

5

5

—

Provide instructional materials for incarcerated adults

—

3

3

Improve systemwide data security

3

3

—

Extend Full-Time Student Success Grant to Cal Grant C recipients

—

2

2

Increase apprenticeship reimbursement rate

2

2

—

Augment funding for systemwide Academic Senateb

—

—

—

Provide COLAc

31

—

-31

Subtotals

($730)

($728)

(-$2)

Total Changes

$262

$311

$50

2016-17 Proposed Spending

$8,259

$8,295

$36

aGovernor’s budget provided an additional $28 million in Proposition 98 settle up and $6.4 million in unspent Proposition 98 prior-year funds for this purpose. The May Revision provides $24 million in settle up and $6.4 million in unspent prior-year funds.

bProvides $300,000.

cCOLA rate was estimated at 0.47 percent in January, finalized at zero in May.

BOG = Board of Governors; COLA = cost-of-living adjustment; and CTE = Career Technical Education.

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Community College Programs Funded by Proposition 98

(In Millions)

2015-16

2016-17

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Apportionments

General Fund

$3,417

$3,455

$38

$3,209

$3,346

$137

Local property tax

2,624

2,562

-62

2,812

2,760

-52

Subtotals

($6,041)

($6,017)

(-$24)

($6,020)

($6,106)

($86)

Categorical Programs and Other Appropriations

Adult Education Block Grant

$500

$500

—

$500

$505

$5

Student Success and Support Program

299

299

—

299

299

—

Physical plant and instructional support (one time)

100

100

—

255

189

-66a

Economic and Workforce Development

23

23

—

223

223

—

Student equity plan implementation

155

155

—

155

155

—

Extended Opportunity Programs and Services

123

123

—

124

123

-1

Disabled Students Program

115

115

—

116

115

-1

Financial aid administration

74

74

—

68

71

2

Student Success for Basic Skills Students

20

20

—

50

50

—

CTE Pathways Initiative

—

—b

—

48

48

—

Lease revenue bond payments

56

56

—

47

47

—

Proposition 39 energy-efficiency projects

39

39

—

45

45

—

Cal Grant B and C supplemental grants

39

39

—

39

41

2

CalWORKs student services

35

35

—

35

35

—c

Mandates block grantd

32

32

—

33

32

—c

Apprenticeship (community colleges)

31

31

—

32

32

—c

Institutional effectiveness initiative

18

18

—

28

28

—

Innovation awards (one time)

—

—

—

25

25

—

Part-time faculty compensation

25

25

—

25

25

—

Telecommunications and technology services

20

27

$7

23

28

5

Apprenticeship (school districts)

20

20

—

22

21

—c

Online course initiative

10

10

—

15

18

3

Nursing grants

13

13

—

13

13

—

Foster Parent Education Program

5

5

—

5

5

—

Fund for Student Success

4

4

—

4

4

—

Part-time faculty office hours

4

4

—

4

4

—

Campus child care support

3

3

—

3

3

—c

Othere

3

3

—

3

3

—c

Mandate backlog payment (one time)

190

193

3

—

—

—

Subtotals

($1,956)

($1,966)

($10)

($2,238)

($2,189)

(-$49)

Totals

$7,997

$7,983

-$14

$8,259

$8,295

$36

aBudget provides an additional $24 million in Proposition 98 settle-up and $6 million in unspent Proposition 98 prior-year funds for this purpose.

bState provided $96 million in 2014-15, including $48 million for 2015-16 costs.

cLess than $500,000.

dIncludes $17,000 in 2015-16 and $13,000 in 2016-17 for mandate reimbursements.

eIncludes Equal Employment Opportunity, transfer education and articulation, district financial crisis oversight, part-time faculty health insurance, and Academic Senate.

CTE = career technical education.

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Summary of California Community Colleges Recommendations

Program

May Revision Proposal

LAO Recommendation

General purpose apportionment funding

Increase by $75 million.

Adopt. Colleges can use flexible funds to meet highest priorities.

Online Education Initiative

Provide $20 million one time.

Adopt. Accelerates implementation of online courses.

Technical assistance for Adult Education Consortia

Increase by $5 million one time (over three years).

Adopt. Maintains service level to consortia during transition process.

Telecommunications and Technology Infrastructure

Increase by $7 million one time and $5 million ongoing.

Adopt. Expands Internet capacity for statewide technology projects.

Full-Time Student Success Grant

Increase by $2 million.

Adopt. Reduces financial aid disparity between career technical education students and other students.

CCC Academic Senate

Increase by $300,000.

Adopt. Addresses increased workload for statewide initiatives.

Energy-efficiency projects (Proposition 39)

Increase by $4 million.

Adopt. Increase for projects consistent with revised Proposition 39 revenue estimate.

Equal Employment Opportunity

Increase by $2 million.

Adopt. Uses special fund balance for authorized purposes.

Strong Workforce Program

Make policy changes.

Modify. Remove requirement that LAO approve funding allocations.

Zero-Textbook-Cost Degree Program

Make policy changes.

Modify. Add requirement for CCC to coordinate with related state initiatives. Consider adding component for instructional materials for incarcerated adults.

Instructional materials for incarcerated adults

Provide $3 million.

Reject. Proposal lacks adequate information and raises several concerns. Consider link to zero-textbook-cost proposal.

Basic Skills Initiative

Make policy changes.

Modify. Adopt change in share for statewide professional development (from 2.4 percent to 5 percent of total program funding). Designate first-year funding for grants. Remove requirement that LAO concur on funding factors.

Enrollment growth

Make no changes to January proposal.

Modify. Reduce 2015-16 enrollment base to reflect updated data and carry adjustment forward into 2016-17. Still assume 2 percent growth year over year. Use freed-up funds for other high priorities.

CCC mandates backlog

Provide $29 million.

Reject. Per-student approach to reducing CCC mandates backlog no longer makes sense.

Deferred Maintenance and Instructional Equipment

Increase by $189 million.

Modify. To extent Legislature frees up funding by rejecting or modifying other CCC proposals, redirect funds for one-time purposes such as maintenance backlog.

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California Student Aid Commission Budget

(Dollars in Millions)

2015-16

2016-17

Year-to-Year Change at May Revision

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Amount

Percent

Expenditures

Local Assistance

Cal Grants

$1,966

$1,915

-$51

$2,103

$2,005

-$98

$90

5%

Middle Class Scholarships

82

48

-34

116

116

—

68

139

APLE

17

14

-2

14

12

-2

-3

-18

Chafee Foster Youth

12

12

—

12

12

—

—

—

Cal-SOAP

8

8

—

8

8

—

—

—

National Guard Awards

2

2

—

2

2

—

—

—

Other Programsa

1

1

—b

1

1

—b

—b

-22

Subtotals

($2,088)

($2,001)

(-$86)

($2,256)

($2,155)

(-$101)

($154)

(8%)

State Operations

$14

$14

—

$14

$17

$2

$2

17%

Totals

$2,102

$2,015

-$86

$2,271

$2,172

-$99

$157

8%

Funding

General Fund

$1,564

$1,477

-$86

$1,428

$1,043

-$385

-$434

-29%

Federal TANF

521

521

—

826

1,109

283

588

113

Otherc

17

17

—

17

20

3

3

20

aIncludes Cash for College, Child Development Teacher/Supervisor Grants, Graduate Assumption Program of Loans for Education, John R. Justice Program, Law Enforcement Personnel Dependents Scholarships, and State Nursing Assumption Program of Loans for Education for Nursing Faculty.

bLess than $500,000 or 0.5 percent.

cIncludes College Access Tax Credit Fund, Student Loan Authority Fund, and other federal funds.

APLE = Assumption Program of Loans for Education; Cal-SOAP = California Student Opportunity and Access Program; and TANF = Temporary Assistance for Needy Families.

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Cal Grant Spending

(Dollars in Millions)

2015-16

2016-17

Year-to-Year Change at May Revision

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Amount

Percent

Total Spending

$1,966

$1,915

-$51

$2,103

$2,005

-$98

$90

5%

By Segment:

UC

$887

$865

-$22

$943

$890

-$53

$25

3%

CSU

669

650

-19

734

698

-36

48

7

Private nonprofit institutions

253

247

-6

261

253

-9

6

2

CCC

137

132

-4

146

145

-1

12

9

Private for-profit institutions

21

21

-1

19

18

-1

-2

-11

By Program:

High School Entitlement

$1,595

$1,547

-$48

$1,711

$1,637

-$74

$90

6%

CCC Transfer Entitlement

209

217

9

204

190

-15

-28

-13

Competitive

157

145

-12

184

172

-12

27

19

Cal Grant C

5

5

—a

4

5

1

—a

—a

By Award Type:

Cal Grant A

$1,115

$1,084

-$31

$1,178

$1,122

-$57

$38

3%

Cal Grant B

846

826

-20

921

878

-43

52

6

Cal Grant C

5

5

—a

4

5

1

—a

—a

By Renewal or New:

Renewal

$1,365

$1,352

-$13

$1,480

$1,419

-$60

$67

5%

New

601

563

-39

624

585

-39

22

4

By Funding Source:

General Fund

$1,443

$1,392

-$51

$1,276

$890

-$385

-$502

-36%

Federal TANF

521

521

—

826

1,109

283

588

113

College Access Tax Credit Fund

2

2

—

2

5

3

3

166

aLess than $500,000 or 0.5 percent.

TANF = Temporary Assistance for Needy Families.

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Cal Grant Recipients

2015-16

2016-17

Year-to-Year Change at May Revision

Governor’s Budget

May Revision

Change

Governor’s Budget

May Revision

Change

Amount

Percent

Total Recipients

340,539

330,650

-9,889

361,608

347,936

-13,672

17,286

5%

By Segment:

CSU

125,595

121,514

-4,081

136,110

128,956

-7,154

7,442

6%

CCC

108,074

105,107

-2,967

114,011

112,725

-1,286

7,618

7

UC

73,398

71,638

-1,760

77,639

73,384

-4,255

1,746

2

Private nonprofit institutions

29,057

28,386

-671

30,093

29,107

-986

721

3

Private for-profit institutions

4,415

4,005

-410

3,755

3,764

9

-241

-6

By Program:

High School Entitlement

255,904

247,595

-8,309

273,062

262,770

-10,292

15,175

6%

Competitive

50,627

48,507

-2,120

56,170

54,215

-1,955

5,708

12

CCC Transfer Entitlement

26,562

27,632

1,070

25,712

23,951

-1,761

-3,681

-13

Cal Grant C

7,446

6,916

-530

6,664

7,000

336

84

1

By Award Type:

Cal Grant B

216,439

209,835

-6,604

232,184

223,585

-8,599

13,750

7%

Cal Grant A

116,654

113,899

-2,755

122,760

117,351

-5,409

3,452

3

Cal Grant C

7,446

6,916

-530

6,664

7,000

336

84

1

By Renewal or New:

Renewal

205,959

201,986

-3,973

222,500

214,991

-7,509

13,005

6%

New

134,583

128,668

-5,915

139,109

132,944

-6,165

4,276

3

Totals do not match across all categories due to modeling issues.