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Budget and Policy Post
October 24, 2022

The 2022-23 California Spending Plan

Proposition 98

Proposition 98 Establishes Minimum Funding Level for Schools and Community Colleges. This minimum funding requirement is commonly called the minimum guarantee. The state calculates the minimum guarantee by comparing three main formulas or “tests.” (Figure 1). Each test takes into account certain inputs, such as state General Fund revenue, per capita personal income, and K-12 student attendance. The state can choose to fund at the minimum guarantee or any level above it. It also can suspend the guarantee with a two-thirds vote of each house of the Legislature, allowing the state to provide less funding than the formulas require that year. The state meets the guarantee through a combination of state General Fund and local property tax revenue.

Figure 1 - Three Proposition 98 Tests

Guarantee up Substantially Compared With Previous Budget Estimates. As Figure 2 shows, the estimates of the guarantee under the June 2022 budget plan are up significantly compared with the June 2021 estimates. For 2021-22, the guarantee is up $16.5 billion (17.6 percent), representing one of the largest upward revisions since the adoption of Proposition 98. This increase is attributable to substantially higher estimates of General Fund revenue. For 2022-23, the guarantee increases by an additional $117 million (0.1 percent) relative to the revised 2021-22 level. This increase is attributable to growth in local property tax revenue and is mostly offset by a modest year-to-year decline in required General Fund spending. Test 1 is operative in both years, with the change in the General Fund portion of the guarantee equating to about 40 percent of the change in General Fund revenues. For both 2021-22 and 2022-23, the budget plan funds at the revised estimate of the guarantee.

Figure 2

Comparing June 2021 and June 2022 Proposition 98 Estimates

(In Millions)



June 2021

June 2022


June 2022

Change From
2021‑22 Revised

Change From
2021‑22 Enacted

Minimum Guarantee

General Fund







Local property tax














Funding by Segment

K‑12 schools







Community colleges







Reserve deposit







Makes Additional Required Deposits Into the Proposition 98 Reserve. Proposition 2 (2014) established a constitutional reserve account within Proposition 98. The purpose of this reserve is to set aside some Proposition 98 funding in relatively strong fiscal times to mitigate funding reductions during economic downturns. Under the adopted budget plan, the state deposits a total of $9.5 billion into this account across the 2020-21 through 2022-23 period—an increase of $4.5 billion compared with the estimates made in June 2021. These deposits reflect the strong estimates of capital gains revenue across the period. The deposits required in 2020-21 and 2021-22 also trigger a statutory cap on school district reserves in 2022-23. (The cap applies the year after the balance in the reserve exceeds 3 percent of the Proposition 98 funding allocated to K-12 schools.) The cap prohibits medium and large districts—those with more than 2,500 students—from holding general purpose reserves that exceed 10 percent of their annual expenditures. Districts can respond to the cap by designating their reserves for specific purposes, seeking exemptions from their county offices of education (COEs), or spending down their reserves.

Adjusts Guarantee Upwards for Expansion of Transitional Kindergarten (TK). The June 2021 budget plan established a plan to expand eligibility for TK beginning in 2022-23. Under the plan, all four-year old children will be eligible by 2025-26. The Legislature and Governor also agreed the state would “rebench” (adjust) the Proposition 98 guarantee for the additional Local Control Funding Formula (LCFF) base, supplemental, and concentration grant amounts generated by the newly eligible students. Consistent with this agreement, the budget plan includes an increase in the 2022-23 guarantee of $614 million related to the first-year costs of the expansion.

K-12 Education

K-12 Proposition 98 Funding Increases Nearly 19 Percent. The budget plan contains $95.5 billion in Proposition 98 funding for K-12 education in 2022-23—$15 billion (18.6 percent) more than the 2021-22 Budget Act level. This increase—combined with the upward revision to the 2021-22 guarantee and various other adjustments—provides almost $33 billion for new K-12 spending. Figure 3 shows how the budget allocates this funding. In the remainder of this section, we describe the K-12 spending actions in greater detail. (The changes related to State Preschool will be covered in our forthcoming publication, The 2022-23 California Spending Plan: Child Care and Preschool.)

Figure 3

2022‑23 Budget Package Contains $33 Billion in
New Proposition 98 Spending

Proposition 98 and Reappropriated Funds (In Millions)


Additional LCFF increase above COLA


Expanded Learning Opportunities Program


New LCFF adjustment for declining attendance in school districts


LCFF growth and COLA (6.56 percent)


School transportation


Transitional kindergarten expansion


Child nutrition reimbursement rate increase


Universal school meals implementation


Special education base rate increase


Transitional kindergarten lower staffing ratios


COLA for select categorical programsa


State Preschool rate increase for three‑year olds


Annualization of State Preschool rate increases


After school program ratesb


COE LCFF increase above COLA


Classified School Employee Summer Assistance Program


State Preschool adjustment factor for students with disabilities


Special education extraordinary cost pools


California College Guidance Initiative


California Newcomer Education and Wellbeing (CalNEW)


Seal of Civic Engagement


Special education technical assistance leads


Agricultural vocational education


COE support for charter schools in differentiated assistance


Single‑district COE base grants for differentiated assistance


Standardized Account Code Structure system replacement project





Learning Recovery Emergency Block Grant


Arts, Music, and Instructional Materials Discretionary Block Grant


Green school bus grants


Community schools


School kitchen upgrades


Golden State Pathways Program


LCFF adjustment for declining attendance in charter schools


Pre‑kindergarten planning and implementation


Teacher and counselor residency programs


Literacy coaches and reading specialists


Inclusive Early Education Expansion Program


Dual enrollment access


Community Engagement Initiative


Math and science professional development


EWIG for English learners and students with disabilities


Classified School Employee Summer Assistance Program


Charter School Facility Grant Program


Teacher residency technical assistance center


Reading and literacy supplementary authorization grant


Model curricula development


State Preschool family fee waivers


Anti‑bias grants


California College Guidance Initiative


Center on Teaching Careers


Extended hold harmless for Paradise Unified


Wildfire‑related property tax backfill


Special education inclusive practices resources








aApplies to the Foster Youth Program, American Indian Early Childhood Education, Special Education, Preschool, Child Nutrition, and K‑12 mandates block grant.

bBackfills rate increases for After School Education and Safety Program and 21st Century Community Learning Centers programs, which were provided in 2021‑22 with one‑time federal funds.

cIncludes funding for Medi‑Cal billing resource lead, a study of English Language Proficiency Assessments, and support for the administration of the physical fitness test.

LCFF = Local Control Funding Formula; COLA = cost‑of‑living adjustment; COE = county office of education; and EWIG = Educator Workforce Incentive Grant.

Local Control Funding Formula

Provides 13 Percent Increase to LCFF Rates. The budget provides $5.1 billion to increase LCFF rates by 13.25 percent in 2022-23. This includes $772 million to make attendance adjustments and cover the cost of a 6.56 percent statutorily required cost-of-living adjustment (COLA), plus an additional $4.3 billion to increase rates above COLA.

Modifies School District Attendance Calculations. The budget includes $2.8 billion to cover the costs associated with modifying the LCFF calculations for school districts with declining attendance. For the purposes of determining their LCFF allotment, districts will be credited with their attendance over the three prior years if it exceeds their current- and prior-year attendance. (For 2022-23, attendance would be based on the average of 2019-20, 2020-21, and 2021-22.) Furthermore, 2021-22 attendance may also be calculated by applying districts’ 2019-20 pre-pandemic attendance rates to their 2021-22 enrollment. (If actual 2021-22 attendance is higher than the alternative calculation, then 2021-22 attendance would be used.) Trailer legislation specifies that this alternative 2021-22 calculation could only be used to calculate LCFF allotments for school districts that complied with short-term independent study requirements included in the 2021-22 budget. This alternative 2021-22 attendance calculation will apply for determining LCFF allotments in future years.

Makes Temporary Adjustment to Charter School Attendance Calculations. The budget plan specifies that, for 2021-22 only, charter schools’ LCFF calculations will be made using the greater of their current- or prior-year attendance. The budget estimates the associated costs will be $413 million. Beginning in 2022-23, charter schools would return to being funded on their current-year attendance, as they had been prior to the pandemic.

Provides Increase for TK Expansion and Staffing Requirements. Trailer legislation included in the 2021-22 budget package gradually expanded TK eligibility beginning in 2022-23, with all four-year olds eligible for TK beginning in 2025-26. The budget package assumes the two-month expansion in 2022-23 will increase LCFF costs by $614 million. In addition, the budget package establishes an ongoing LCFF add-on of $2,813 per TK student beginning in 2022-23 for school districts and charter schools to maintain average TK classroom enrollment of no more than 24 students for each school site. Trailer legislation also specifies that in 2022-23, school districts and charter schools must maintain at least 1 adult for every 12 students in TK classrooms, and commencing in 2023-24, maintain at least 1 adult for every 10 TK students. Beginning in 2023-24, the add-on will annually increase at the same percentage as the statutory COLA. Unlike the existing K-3 add-on, districts cannot collectively bargain for higher TK staffing ratios. The budget assumes the additional add-on will cost $383 million in 2022-23. In addition, trailer legislation allows the Commission on Teacher Credentialing (CTC) to issue one-year emergency specialist teacher permits in early child education that allow permit holders to teach TK if they meet certain conditions.

Increases LCFF for COEs by 15 Percent Statewide. The budget package provides a $101 million ongoing increase to COEs through LCFF, representing roughly a 15 percent increase in total COE LCFF funding. This includes an increase to the county operations grant, which provides flexible funding for COEs and is intended to support regional services to school districts. Only COEs that are funded at their target LCFF entitlement will receive additional funding through the increase in the county operations grant. For COEs that are funded above their LCFF targets (33 of 58 COEs in 2021-22), the budget package establishes an ongoing add-on equal to the annual statutory COLA that COEs funded at their target receive.

Expanded Learning

Increases Funding for Expanded Learning Opportunities Program (ELOP). The budget package increases ongoing funding for ELOP by $3 billion, bringing total program funding to $4 billion ongoing. Trailer legislation also modifies the two-tiered ELOP rate structure, which provides funding to school districts and charter schools based on the number of students in grades TK-6 who are English learners or from low-income families (EL/LI). School districts and charter schools with a student body that is at least 75 percent EL/LI will receive $2,750 per EL/LI student, while the rate for other school districts and charter schools will be based on the amount of funding remaining. To provide time for programs to be developed and staff to be hired, school districts and charter schools will not be required to comply with any programmatic requirements in 2022-23 or be subject to an audit. Beginning in 2023-24, school districts and charter schools with an EL/LI percentage of 75 percent or more will be required to offer the program to all of their elementary students and provide access to any student whose parent or guardian requests placement in the program. Those with an EL/LI share of less than 75 percent will be required to offer the program and provide access to all EL/LI elementary school students, though their rates would continue to vary depending on the amount of funding available.

Makes Permanent the Temporary Rate Increases Provided to After School Programs in 2021-22. The budget package provides a total of $149 million ongoing Proposition 98 for two expanded learning programs—$95 million to the After School Education and Safety program and $54 million to the 21st Century Community Learning Centers program. These increases provide ongoing funding for the temporary rate increases provided in 2021-22 with one-time federal funds.

School Transportation

Significantly Increases Funding for Home-to-School Transportation. Under existing law, school districts and COEs receive an “add-on” to their LCFF allotments based on the amount of funding they received for school transportation in 2012-13. These add-ons total $496 million statewide. Beginning in 2022-23, the budget establishes a new funding stream to supplement these add-ons. Specifically, school districts and COEs will receive an annual allotment equal to the difference between their add-on amounts and 60 percent of the eligible transportation expenditures they reported in the previous year. Trailer legislation links eligible expenditures to the definition in the state accounting manual, excluding capital outlay and expenditures related to the transportation of students attending other districts. The budget estimates the associated increase in funding for 2022-23 at $637 million. To qualify for this funding, districts and COEs must adopt local plans describing the transportation services they will provide for their students. These plans must prioritize transportation for students in grade 6 or below and LI students. Trailer legislation also provides that the existing add-on amounts will receive the same annual COLA as the rest of LCFF beginning in 2023-24.

Establishes New Grant Program to Fund Zero-Emission School Buses. The budget provides $1.5 billion for one-time grants to support the adoption of zero-emission school buses. Trailer legislation makes these funds available in installments of $300 million per year beginning in 2023-24. Of the annual amount, $225 million (75 percent) will be allocated by the California Air Resources Board for the replacement of internal combustion buses with zero-emission buses. The remaining $75 million (25 percent) will be allocated by the California Energy Commission for infrastructure to support these buses, such as charging stations and electrical equipment. School districts, COEs, classroom-based charter schools, and joint powers authorities are eligible to apply. Applicants will receive priority if they (1) have high shares of EL/LI students, (2) have older buses compared with other applicants, (3) are a small and rural school district, or (4) propose purchasing buses with bidirectional charging capability. Trailer legislation also allows the administering agencies to fund buses powered by renewable fuels (such as compressed natural gas) for applicants demonstrating that zero-emission buses would be infeasible in their specific situation. To reduce costs for grant recipients, the budget requires the Department of General Services, in consultation with the California Energy Commission and the California Workforce Development Board, to establish statewide contracts with school bus manufacturers to make zero- and low-emission school buses available for purchase by grantees. These contracts must comply with certain labor and wage standards.

Special Education

Increases Base Funding Rates to $820 Per Student. The budget provides $500 million to increase base rates for most special education local plan areas (SELPAs) from $715 per student to $820 per student—an increase of nearly 15 percent. (Most SELPAs are regional collaborations of neighboring districts, COEs, and charter schools, though some consist of only a single large district.) Two SELPAs with 2021-22 base rates above $820 per student would not receive an augmentation.

Modifies Attendance Calculations for Base Funding. In addition to augmenting base funding, the budget modifies the attendance calculations for the special education base funding formula. Specifically, rather than funding the highest year of SELPA-level attendance across three years, the modified formula will fund the highest year of attendance across three years for each respective SELPA member. Funds would continue to be allocated to SELPAs.

Makes Several Other Changes. The budget also includes several other special education funding and policy changes:

  • Allocates Mental Health Funding Directly to SELPA Members. Starting in 2023-24, the budget will allocate special education mental health funding directly to school districts, COEs, and charter schools rather than through SELPAs.

  • Augments Extraordinary Cost Pools. The budget provides a $14 million ongoing augmentation (for a total of $20 million ongoing) for the existing extraordinary cost pools for nonpublic school and mental health placements. Provisional language specifies that mental health-related placements for small SELPAs will be fully funded first, before funding is made available to reimburse placements in nonpublic schools.

  • Increases Funding for Special Education Resource Leads. The budget includes a $2 million ongoing increase (for a total of $12 million ongoing) to provide statewide technical assistance to SELPAs on a variety of special education issues.

  • Develops New Inclusive Tools Guide. The budget provides $2 million one time to develop, produce, and disseminate resources on evidence-based inclusive practices for students with disabilities across all identity groups. Trailer legislation requires Sacramento COE to develop the resources in consultation with either an institute of higher education or nonprofit organization with expertise in this area, along with input from the California Family Empowerment Centers and the Support Inclusive Practices project. The California Department of Education (CDE) and Sacramento COE will provide a report detailing and, to the extent possible, evaluating the effectiveness of the resources by June 30, 2025.

  • Allocates Federal Funds to Continue Work on Two Previously Funded Studies. The budget provides $1.2 million one-time federal funding (Individuals with Disabilities Education Act) to continue work from two studies initially funded in the 2020-21 budget package—specifically the studies developed by the alternate pathway to a high school diploma and the Individualized Education Program (IEP) template work groups. Of the total, $1 million is to develop alternative coursework and activities for teachers to use with students with disabilities pursuing an alternate pathway to a high school diploma under the state minimum graduation requirements. By October 1, 2022, CDE is to contract with the state’s federal comprehensive technical assistance provider to conduct a national review of coursework and activities in other states and develop options that would meet California’s graduation requirements. CDE and the contractor will provide the developed alternative coursework and activities by June 30, 2024. The remaining $200,000 is to continue work on the statewide IEP template by funding the California Collaborative for Educational Excellence (CCEE) to convene stakeholders to provide feedback and further refine the template. CCEE is to provide an update on the development of a statewide standardized IEP template by June 30, 2024.


Provides Base Rate Increase. The budget includes $612 million ongoing to increase the reimbursement rate for school meals to 89.5 cents per meal—a 63 cent increase. The increased rate is intended to backfill for the expiration of federal COVID-19 pandemic flexibilities that allowed these programs to claim a higher federal meal rate. (The flexibilities expired June 30, 2022.)

Funds Universal Meals Implementation. The 2021-22 budget package required that, beginning in 2022-23, schools provide two free meals per school day to any student requesting a meal. The 2022-23 budget package includes a $596 million ongoing increase for this purpose. The funding is intended to cover the increased state costs to reimburse reduce-priced and paid meals at the same rate as free meals. In tandem with the $54 million ongoing provided in the 2021-22 budget, the 2022-23 budget includes a total of $650 million to implement the new state universal meals requirement.

Funds Additional Round of Kitchen Infrastructure Grants. The budget package provides $600 million one time for local education agencies (LEAs)—school districts, charter schools, and COEs—to upgrade their kitchen infrastructure and increase school capacity to prepare fresh meals on-site. To be eligible for funds, LEAs must attest that at least 40 percent of reimbursable meals will be freshly prepared on-site by 2023-24. Each eligible LEA may receive a base grant of $100,000 and the remaining funds will be distributed based on the number of reimbursable meals the LEA served in October 2021. The base grant and half of the funds distributed on a per-meal basis must be spent on specified activities, such as cooking equipment, service equipment, refrigeration, training, and compensation. The LEA may spend the remaining funds on facility improvements and other equipment upgrades. By June 30, 2025, LEAs are to report to CDE how they used funding to improve the quality of school meals, increase participation in the subsidized school meal program, and increase capacity for freshly prepared on-site meals.

Provides One-Time Funding Various Nutrition Initiatives. The budget includes $100 million one time that LEAs can use for a variety of purposes related to school meals. Specifically, LEAs can use funds to (1) purchase California-grown or produced foods that are sustainably grown, whole, or minimally processed; (2) purchase plant-based or restricted diet meals; and/or (3) freshly prepare meals on-site. Each eligible LEA may receive a base grant of $50,000. Half of the remaining funds will be distributed based on the number of reimbursable meals the LEA served in October 2021. The other half of the remaining funds will be distributed proportionally to LEAs based on the number of students eligible for free or reduced-price meals.

Major One-Time Spending

In addition to the one-time spending described above, the budget includes several other one-time augmentations.

Creates Learning Recovery Emergency Block Grant. The budget includes $7.9 billion for a grant intended to assist K-12 schools in supporting academic learning recovery and the social and emotional well-being of students and staff. LEAs may use funds for a variety of academic and social-emotional activities, including increasing instructional learning time, providing tutoring and other academic services, offering additional instruction to students not on track to graduate, and addressing other barriers to learning. Funding is distributed to LEAs based on the number of students who are EL/LI and is intended for learning recovery initiatives through 2027-28. As a condition of receiving funding, each LEA must periodically submit expenditure reports, with a final report due December 1, 2029.

Creates Arts, Music, and Instructional Materials Discretionary Block Grant. The budget includes $3.6 billion in one-time funding for this purpose. LEAs may use these funds for instructional materials and professional development related to school climate (such as training on de-escalation strategies) and various academic subject areas, including visual and performing arts. Funds may also be used for operational staffing costs, materials and equipment to keep schools safely open during the COVID-19 pandemic, and purchasing diverse and culturally relevant books and text that support independent student reading. Funding is distributed on a per-student basis and will be available through 2025-26. Each local governing board must adopt a public plan that describes how funding will be spent.

Provides Third Round of Funding for Community Schools Partnership Grant Program. The budget provides an additional $1.1 billion for the Community Schools Partnership Grant Program. (The state provided $3 billion in one-time funding for the program last year.) Trailer legislation also makes several programmatic changes. Most notably, trailer legislation eliminates coordination grants for LEAs and instead allows them to retain the lesser of $500,000 or 10 percent of total implementation grants awarded to their school sites each year. With this set aside, LEAs will be expected to support the administration, oversight, and coordination of their community schools. Trailer legislation also allows CDE to set aside up to $144 million for COEs serving two or more community school grantees to coordinate county-level multiagency partnerships to support implementation. The budget also includes $2.5 million for the Superintendent of Public Instruction to provide a formative evaluation of the program by December 31, 2023 and annually thereafter, ending with a final comprehensive report on the impact of the program by December 31, 2031. The annual formative evaluations are intended to measure progress on community schools’ development and their impact on student outcomes. The evaluations must also demonstrate evidence of best practices and successful strategies for integrating funding sources and meeting LEAs’ school improvement goals. The Superintendent must use a competitive grant process to contract with an entity to develop and administer annual formative evaluations. (The formative evaluations are separate from the report that is required to be submitted by December 31, 2025 from the initial round of community schools funding.)

Funds Additional Pre-Kindergarten Planning and Implementation Grants. The budget package provides $300 million for Pre-Kindergarten Planning and Implementation Grants. Grants can be used for State Preschool or TK expansion costs such as hiring, recruitment, professional development, classroom materials, and supplies. All LEAs that operate kindergarten programs will receive a base grant. LEAs with up to 500 kindergarteners are to receive a $25,000 base grant and LEAs with more than 500 kindergartners are to receive a $50,000 base grant. COEs are to receive $15,000 for every LEA in their county that operates a kindergarten program. Of the remaining funds, 60 percent will be distributed based on the LEA’s proportional share of kindergarten enrollment. The remaining 40 percent will be distributed based on the LEA’s share of students who are EL/LI. The state provided $200 million one time for similar purposes in 2021-22.

Funds Continuation and Expansion of Community Engagement Initiative. The budget provides $100 million for the Community Engagement Initiative, which was initially funded with $13.3 million one-time funding in 2018-19. CCEE will co-administer the program with a lead agency chosen by CCEE, with approval from the executive director of the State Board of Education. Funding will be available until 2026-27, with up to $5 million available for administration costs. Trailer bill language requires CCEE and the lead agency to develop common metrics for effective and equitable community engagement; develop an in-depth training series and resources on meaningful pupil, family, and community engagement; and convene 30 professional learning networks. By June 30, 2027, CCEE and the lead agency are required to submit a report that includes a description of best practices identified by the professional learning networks, the impact of the program on home communities and school districts, and feedback for improving the professional learning networks and improving the capacity of communities and school districts to conduct meaningful engagement.

Creates New Program to Improve College and Career Readiness. The budget package includes $500 million to establish the Golden State Pathways Program, a new competitive grant program intended to improve college and career readiness. Grantees will be required to:

  • Provide high school students a program that includes (1) an integrated program of study that incorporates all of the course requirements for admission to the University of California and California State University (UC/CSU) systems, and at least one of the other criteria to be considered prepared under the College and Career Indicator; (2) the opportunity to earn at least 12 college credits; (3) opportunities to participate in work-based learning experiences; and (4) integrated support services to address a student’s social, emotional, and academic needs.

  • Develop and integrate standards-based academics with a sequenced curriculum aligned to high-wage, high-demand jobs.

  • Provide articulated pathways from high school to postsecondary education and training that are aligned with regional workforce needs.

  • Collaborate with other entities—such as institutions of higher education and employers—to increase the availability of college and career pathways that address regional workforce needs.

  • Leverage available resources or in-kind contributions from public, private, and philanthropic sources to sustain the ongoing operation of the pathways they develop.

Trailer legislation specifies that of the total amount, at least $425 million is to be used for implementation grants to support grantees to collaborate with their program partners, up to $50 million is for regional consortium development and planning grants (for grantees to collaboratively plan with their program partners), and up to $25 million can be used for CDE to contract with up to ten LEAs to provide technical assistance to grantees. Grant recipients will be required to annually report data disaggregated by student subgroups in several areas, including academic performance, graduation rates, completion of UC/CSU course requirements, postsecondary outcomes, and employment outcomes. An evaluation of the program is required to be completed between June 30, 2027 and June 30, 2028.

Provides Funding to Encourage Dual Enrollment. The budget includes $200 million for a competitive grant program aimed at increasing programs that provide high school students with access to college level courses. Of this amount, $100 million is available for LEAs to apply for one-time grants of up to $250,000 for planning and starting up middle and early college high schools on K-12 school sites. (Middle college high schools operate on community college campuses and are targeted to students who are at risk of dropping out of high school. Early college high schools partner with a community college or public university that allows students to earn a diploma and up to two years of college credit by graduation.) The remaining $100 million is available for one-time grants of up to $100,000 to establish College and Career Access Pathways agreements that allow students to take some community college courses at their high school. Priority will be given to LEAs with at least half of their student population consisting of EL/LI students, as well as those that have higher than the state average rates of high school dropouts, suspensions or expulsions, child homelessness, foster youth, or justice-involved youth. The grant program requires CDE to provide two programmatic reports, one by June 30, 2024 and the other by June 30, 2027. These reports are required to include the number of grants awarded, a qualitative description of how the funding was used by LEAs, and various participation and outcome data for students participating in dual enrollment programs. The data shall be disaggregated by type of dual enrollment opportunity, grade level, gender, socioeconomic status, race and ethnicity, and other disproportionately impacted groups.

Provides Additional Funding and Expands Scope of Teacher Residency Programs. The budget provides $250 million to start new or expand existing teacher residency programs and expands eligibility to school counselor residency programs. (The funding consists of $184 million in 2021-22 funding and $66 million in reappropriated funds.) The school counselor residency grants would be structured very similarly to the existing teacher residency grants. LEAs would partner with preparation programs to develop and implement school counselor residency programs, where prospective counselors work alongside a mentor counselor during their training. Funding priority is given to LEAs that can demonstrate a commitment to increasing diversity in the school counselor workforce that serve a student population with at least 50 percent LI students or are located in a rural or urban area. For both teacher and school counselor residency grants, LEAs may apply for planning grants of up to $250,000 and residency grants of up to $25,000 for each resident. LEAs must provide an 80 percent match for state funding. Resident teachers and counselors must agree to teach for at least four years in the LEA and failure to do so will result in the return of funds. Counselor residency programs must meet certain additional expectations, such as ensuring residents are prepared to earn their credential and support all students in learning and well-being. The budget also provides $20 million to establish a statewide teacher residency technical assistance center. Lastly, the budget package expands teacher residency planning grants to any credential type, rather than limited to identified shortage areas (as was the case previously).

Creates Targeted Incentives to Train and Hire Literacy Coaches. The budget allocates a total of $265 million to fund three literacy coach initiatives. First, the budget includes $225 million for eligible schools to hire and train literacy coaches and reading specialists. LEAs receive funding for each school site where at least 97 percent of students in TK through grade 6 are EL/LI. Each eligible school generates a base grant of $450,000 and funding is available through 2026-27. By June 30, 2027, LEAs are to submit a report on how funds were used, the impact the funding had, and the plans to continue funding literacy coaches after the grant period. Second, the budget provides $25 million for a COE to develop and provide statewide training for educators to become literacy coaches and reading specialists. CDE will select the COE through a competitive process and give priority to a COE with demonstrated success of improving student literacy and plans to partner with institutions of higher education. Finally, the budget includes $15 million for the Reading and Literacy Supplementary Authorization Incentive Grant Program, which will be administered by CTC. LEAs may apply for funding on behalf of teachers interested in obtaining supplemental authorization for reading and literacy. LEAs can receive up to $2,500 for each teacher and must provide dollar-for-dollar matching funds. Grant funds can cover the associated coursework, books, fees, and tuition and are available through June 20, 2027. CTC is to submit an annual report on the number of grants issued, participating LEAs, and supplementary authorizations issued on April 1 of each year.

Funds Other Initiatives Related to the Educator Workforce and Curriculum. The budget funds several initiatives related to professional development, curriculum development, and teacher recruitment:

  • Math and Science Professional Development. The budget includes $85 million for math and science professional development for educators teaching students in preschool through grade 12. Of the total amount, $35 million is allocated to the California Statewide Early Math Initiative, which is administered by the Fresno COE, to develop and provide educator professional development for younger students in preschool through grade 3. CDE will award the remaining $50 million through a competitive process to a consortium of COEs that will focus on professional development for grades 4 through 12. COEs receiving funding are also required to support improved family and community engagement in math and science, as well as coordinate efforts with other related professional development initiatives. The COEs are also to provide a proposed scope of work and five-year budget plan, which are then subject to approval by CDE and the Executive Director of the State Board of Education.

  • Educator Workforce Investment Grants. The budget provides $35 million for additional Educator Workforce Investment Grants for inclusive instructional methods and effective language acquisition programs for EL students ($20 million), as well as computer science ($15 million). These grants were first funded in the 2019-20 budget package to be awarded to institutions of higher education or nonprofit organizations. The second round of grants, in contrast, must be awarded to LEAs to provide statewide professional development to teachers and paraprofessionals. In the case of the computer science grants, one or more institutions of higher education must partner with at least one COE to provide statewide computer science training. CDE and CCEE are to submit annual reports detailing the grant awards and activities. Funding is available through 2024-25.

  • Four Model Curricula. The budget allocates a total of $14 million one time for selected COEs to develop model curricula for Native American studies, the Vietnamese American refugee experience, the Cambodian genocide, and Hmong history and cultural studies. Model curricula for these topics is required by Chapter 686 of 2018 (SB 895, Nguyen) and Chapter 614 of 2017 (AB 738, Limón). The funds are administered by CDE and are to be split equally across the four model curricula. Funding supplements $1.2 million in one-time funding provided for this purpose in the 2021-22 budget package.

Other Proposition 98 Spending

The budget plan also includes various other spending actions:

  • Ongoing Funding for Classified School Employee Summer Assistance Program. The budget provides $90 million ongoing and $35 million one time for the Classified School Employee Summer Assistance Program. (The program has received one-time funding approved in the annual budget every year since 2018-19.) This program allows classified employees to deposit a portion of their income earned during the school year into a fund that is to be matched by state funds dollar for dollar and paid out in one or two installments during the summer months. If state funding is insufficient to meet demand from participating districts, the matching funds are prorated. The $35 million in one-time funding is intended to address higher demand for the program in 2021-22.

  • Charter School Facility Grant Program. The budget includes $30 million one-time funding to the Charter School Facility Grant Program to support eligible costs associated with remodeling buildings, deferred maintenance, initially installing or extending service systems and other built-in equipment, improving sites, and facility modifications to mitigate the spread of COVID-19.

  • California College Guidance Initiative (CCGI) Expansion. The budget provides an ongoing augmentation of $9.3 million (bringing total Proposition 98 funding to $16.8 million) and $4.4 million one time to support full-scale implementation of the college planning online platform, Expansion of the platform is a component of the state’s new Cradle to Career longitudinal data system. The ongoing augmentation covers the cost of new districts joining the platform, as well as fees previously paid by participating districts to operate the platform. The one-time funding is to establish a regional network of COEs to increase utilization of the platform and provide technical assistance to districts. The platform is operated by CCGI, a nonprofit entity housed within the Foundation for California Community Colleges.

  • Ongoing Funding for California Newcomer Education and Wellbeing (CalNEW). The budget includes $5 million ongoing for the Department of Social Services—in collaboration with CDE—to administer the CalNEW program. (The state previously provided one-time funding to the program in 2020-21 and 2021-22.) This program allocates funding to school districts and COEs to provide services for refugees, unaccompanied undocumented minors, and immigrant families.

  • Antibias Education Grant Program. The budget includes $10 million one time to provide grants to LEAs for training and resources to prevent and address bias or prejudice on school campuses. Allowable activities include professional development, opportunities to review and update biased school district policies, the development of a comprehensive diversity plan, implementing relevant K-12 curriculum, and support for student-initiated efforts to combat bias or prejudice. CDE will develop the application process and must award at least 50 grants. Each grant will provide at least $75,000 and is available through 2025-26. CDE is required to submit a report on the awarded grants by September 1, 2023. The state provided $10 million for the Antibias Education Grant Program in the 2021-22 budget under the same program rules.

  • New California Serves Program. The budget provides $5 million ongoing for annual grants to LEAs to expand community service with instruction or “service learning” opportunities for high school students pursuing a State Seal of Civic Engagement. CDE will develop and administer the grant program in collaboration with CaliforniaVolunteers, the state office tasked with engaging Californians in service, volunteering, and civic action. Eligible LEAs must serve a student population with more than 55 percent EL/LI students. Grantees may receive up to $500,000 annually. Allowable uses include paid staff time for planning or coordinating activities, professional development, instructional materials, and participation costs (such as travel expenses or materials). Beginning November 5, 2024, CDE must submit an annual report that provides program details and evaluates the program. The budget specifies additional activities for CDE to complete in partnership with CaliforniaVolunteers, including providing recommendations to the Legislature for evidence-based strategies to expand service learning opportunities, posting evidence-based strategies online, and developing criteria to measure student outcomes.

  • Technical Assistance for Charter Schools and Single District COEs. The budget includes $3.4 million ongoing for these two changes. Of this amount, $2 million is for COEs to provide technical assistance to charter schools identified as low performing. Each COE will receive $100,000 for each identified charter school within the county. Charter schools were first eligible to receive technical assistance based on 2018-19 data, but, largely due to the pandemic, the 2022-23 budget will be the first to fund additional support for low-performing charter schools. In addition, the budget provides $1.4 million in technical assistance base grants for single district COEs—those in counties that contain only one school district. Each COE receives a base grant of $200,000 for general technical assistance activities. In prior years, single district COEs did not receive base grant funding for technical assistance.

Non-Proposition 98 Spending

Provides $1.7 Billion for School Facilities. The budget allocates $1.7 billion one-time non-Proposition 98 General Fund attributable to 2021-22 for school facilities. Of this total, $1.3 billion is to cover the state share for new construction and modernization projects under the School Facilities Program. These funds supplement existing funds from Proposition 51, the state school bond approved by voters in 2016. Proposition 51 authorized the state to sell $7 billion in general obligation bonds for school facilities. Funding from Proposition 51 will likely be exhausted in 2022-23. The budget package also includes intent language to provide $2.1 billion in 2023-24 and $875 million in 2024-25 to fund the School Facilities Program. The budget also provides $250 million for the Lynwood Unified School District to rebuild Lynwood High School, which experienced building damage in fall 2021. The remaining $100 million is for schools to construct or renovate State Preschool, TK, and full-day kindergarten classrooms. The budget also includes language specifying the intent to provide an additional $550 million for State Preschool, TK, and full-day kindergarten classrooms in 2023-24.

Funds Two Teacher Preparation Initiatives. The budget provides $24 million annually for 2022-23 and 2023-24 to waive fees for exams taken during teacher and administrator preparation. CTC will administer the exam fee waivers and provide a report on the types and number of waivers issued by October 1, 2023. Any remaining funding will be used for grants to support new or expand existing integrated undergraduate teacher preparation programs, which allow participants to earn an undergraduate degree and a teaching credential within four years. (The state provided one-time funding for integrated programs in 2016-17.) The budget package also makes several modifications to the grants. For instance, integrated programs for the state’s new early childhood specialist credential will be eligible for grants. Furthermore, the budget package establishes implementation and expansion grants for institutions of higher education to develop new integrated programs in specified shortage areas or establish new partnerships with California community colleges to create four-year integrated programs. Each implementation or expansion grant will provide up to $500,000. Allowable uses include paid faculty release time for planning, stipends for program coordinators, and recruitment activities. The budget package also requires grantees to provide certain assurances, such as a commitment to implement any planned integrated programs and to develop a plan for recruiting and retaining participants. CTC is required to annually report program outcome data from grantees.

Supports New and Ongoing Workload at CDE. The budget provides CDE with 80.5 additional positions and an associated $24.7 million ($21.8 million non-Proposition 98 General Fund and $2.9 million federal funds) to accommodate new workload. Of the $24.7 million, 52 percent is ongoing and 48 percent is one time. Notably, ten positions and $5.8 million are to fund general purpose information technology and information security for CDE. Additional ongoing funding supports workload associated with the state’s new Cradle to Career data system, additional staff to improve services and supports for young children with disabilities, and support for various one-time and ongoing K-12 programs included in the budget package. The most notable one-time augmentations are for information security assessments and service upgrades, annual formative assessments of the Community Schools Partnership Grant Program, and activities to further develop an alternative pathway to a high school diploma for students with disabilities. A list of all new K-12 workload for the department is on our EdBudget website.

Funds New Activities at CTC. The budget provides CTC with 29 positions and an associated $4.2 million for new and ongoing workload. The most notable augmentations are to implement the new early childhood education teaching credential and new teacher recruitment initiatives, such as training career counselors and establishing a teacher recruitment web portal. The budget also funds additional administrative support for teacher grant programs administered by CTC and data gathering to meet various state and federal reporting requirements.