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Budget and Policy Post
November 28, 2023

The 2023-24 California Spending Plan

Proposition 98 and K-12 Education


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 Down in 2022-23 and 2023-24. As Figure 2 shows, the guarantee is down $3 billion (2.7 percent) in 2022-23 compared with the estimates made in June 2022. The decrease in the guarantee is primarily attributable to lower General Fund revenue estimates, somewhat offset by higher local property tax revenue. For 2023-24, the guarantee increases by $953 million (0.9 percent) relative to the revised 2022-23 level. This increase reflects growth in property tax revenue, partially offset by lower General Fund revenue estimates. 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 years, the budget plan funds at the revised estimate of the guarantee.

Figure 2

Comparing June 2022 and June 2023 Proposition 98 Estimates

(In Millions)

2022‑23

2023‑24

June 2022 Enacted

June 2023 Revised

Change

June 2023 Enacted

Change From 2022‑23 Revised

Change From 2022‑23 Enacted

Minimum Guarantee

General Fund

$82,312

$78,117

‑$4,195

$77,457

‑$660

‑$4,855

Local property tax

28,042

29,241

1,199

30,854

1,613

2,812

 Totals

$110,354

$107,359

‑$2,995

$108,312

$953

‑$2,042

Funding by Segment

K‑12 schools

$95,524

$93,241

‑$2,283

$94,953

$1,712

‑$571

Community colleges

12,606

12,331

‑275

12,456

125

‑150

Reserve deposit

2,224

1,787

‑437

903

‑885

‑1,322

Makes 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 $7.5 billion into this account across the 2021-22 through 2023-24 period—an increase of $1.3 billion compared with the estimates made in June 2022. (The increase reflects additional deposits in 2021-22 and 2023-24, partially offset by a lower deposit in 2022-23.) The higher required deposits are primarily due to revenue estimates from the administration that have capital gains accounting for a larger share of General Fund revenue over the period. These deposits bring the total balance in the reserve to $10.8 billion in 2023-24—10 percent of the Proposition 98 guarantee. As long as the balance remains at this 10 percent threshold, the constitutional formulas do not require additional deposits. The balance in the Proposition 98 Reserve also makes the statutory cap on local school district reserves operative for another year. (The local reserve cap, which became operative for the first time in 2022-23, limits the general-purpose reserves medium and large school districts may hold.)

Adjusts Guarantee 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 upward for the additional Local Control Funding Formula (LCFF) base, supplemental, and concentration grant amounts generated by the newly eligible students. For 2022-23, the budget makes a $357 million adjustment to the guarantee for TK expansion—a decrease of $247 million compared with the June 2022 estimate. This reduction reflects updated data showing fewer participating students than the state previously anticipated. For 2023-24, the state makes an adjustment of $954 million to account for the combined first- and second-year costs of the expansion. Similar to 2022-23, the state will revise this estimate next year to reflect updated participation data.

K-12 Education

Overall K-12 Proposition 98 Funding Decreases Slightly but Still Supports New Commitments. The adopted budget contains $95 billion in Proposition 98 funding for K-12 education in 2023-24—$571 million (0.6 percent) less than the 2022-23 Budget Act level. Although overall funding decreases, one-time costs of nearly $3 billion expire in 2023-24, freeing-up the underlying funding for new commitments. After accounting for these funds and various smaller changes over the 2021-22 through 2023-24 period, $3.3 billion is available for new K-12 Proposition 98 spending. (As we discuss below, the budget also provides $938 million outside of Proposition 98 for arts education as required by Proposition 28.) 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 have been covered in our publication, The 2023-24 California Spending Plan: Child Care and Preschool.)

Figure 3

Budget Package Includes $3 Billion in New K‑12
Proposition 98 Spending

Proposition 98 and Reappropriated Funds (In Millions)

Ongoinga

LCFF growth and COLA (8.22 percent)

$3,428

COLA for select categorical programs (8.22 percent)b

556

Transitional kindergarten expansionc

761

Equity multiplier

300

Universal school meals

154

State Preschool

124

COE alternative schools funding increase

80

Access to opioid overdose reversal medication

4

K‑12 High Speed Network

4

California College Guidance Initiative

2

California School Information Services

2

Equity lead in statewide system of support

2

California Newcomer Education and Wellbeing

2

Antibias education and training

1

Preschool assessment tool

1

Fiscal Crisis and Management Assistance Team (FCMAT)

1

LCAP query tool and electronic template

d

 Subtotal

($5,422)

One‑Time Augmentations

Literacy coaches and reading specialists

$250

2022‑23 school meals

110

Charter School Facility Grant Program

30

Bilingual Teacher Professional Development Program

20

Commercial dishwashers

15

Diverse Education Leaders Pipeline Initiative

10

Restorative justice grants

7

California School for the Deaf—Fremont

2

Wildfire‑related property tax backfill

1

Review of screening tools to identify early reading difficulties

1

Update to digital learning and standards integration guidance

­—e

 Subtotal

($446)

One‑Time Reductions

Learning Recovery Emergency Block Grant

‑$1,136

Green school bus grants

‑1,000

Arts, Music, and Instructional Materials Discretionary Block Grant

‑200

Inclusive Early Education Expansion Program

‑163

Use federal funding to cover ASES costs

‑25

CCEE adjustment for unspent prior year funds

‑4

 Subtotal

(‑$2,528)

  Total

$3,340

aBudget package also provides $938 million for arts education as required by Proposition 28 (2022).

bApplies to the Foster Youth Program, American Indian Early Childhood Education, Special Education, Child and Adult Care Food Program, Charter School Facility Grant Program, American Indian Education Centers, and K‑12 mandates block grant.

cReflects additional $597 million in LCFF costs associated with higher attendance in transitional kindergarten, and $164 million for lower transitional kindergarten staffing ratios of additional students.

dReflects $148,000.

eReflects $100,000.

LCFF = Local Control Funding Formula, COLA = Cost‑of‑living adjustment, COE = county office of education, ASES = After School Education and Safety Program, CCEE = California Collaborative for Educational Excellence, and LCAP = Local Control and Accountability Plan.

Ongoing Spending Changes

Provides 8.22 Percent COLA for Local Control Funding Formula (LCFF) and Other Programs. The budget provides an 8.22 percent statutory cost-of-living adjustment (COLA) for the LCFF. This COLA rate, which reflects the significant inflation that occurred over the previous year, represents the highest statutory rate since 1980-81. The budget also assumes savings from a 3.16 percent decline in the attendance used to calculate district funding under LCFF. (A series of temporary adjustments previously had insulated districts from the fiscal effects of lower attendance, but these adjustments begin phasing out in 2023-24.) The COLA and attendance adjustments combined increase LCFF by $3.4 billion. In addition to this amount, the budget anticipates a $761 million increase in LCFF related to the continuing expansion of transitional kindergarten in 2023-24. Separate from LCFF, the budget provides $556 million to cover an 8.22 percent COLA for several categorical programs (primarily special education).

Uses One-Time Funds to Cover LCFF Costs. The cost of covering the COLA—combined with various other augmentations—exceeds the Proposition 98 funding available for schools in 2023-24. To bridge the gap, the budget uses $1.6 billion in one-time funds to support ongoing LCFF costs. From an accounting perspective, this one-time funding counts toward 2021-22. Schools, however, will receive all of the associated cash in 2023-24 as part of their regular payments under the LCFF. (This one-time funding exists because the Proposition 98 funding requirement exceeded previous estimates for 2021-22, costs for LCFF came in lower than anticipated, and the state reduced funding for a few previously approved programs.)

Allocates Proposition 28 Funding. Proposition 28 (2022) established a program to provide additional funding for arts education, beginning in 2023-24. The annual amount for the program equals 1 percent of the Proposition 98 funding allocated to schools in the previous year. Individual schools receive funding based upon their enrollment and the proportion of their students qualifying as low income. For 2023-24, the budget provides $938 million for the program. Schools will receive this funding in addition to all other funding they receive under Proposition 98. (Beginning in 2024-25, the program will be folded into Proposition 98 and the Proposition 98 funding requirement will be increased by a corresponding amount.)

Provides Increase for Transitional Kindergarten (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 old children eligible for TK beginning in 2025-26. In 2022-23 and 2023-24, TK eligibility expands by an additional two months each year. To be eligible for TK, a child must have their fifth birthday by April 2 in 2023-24, compared with February 2 in 2022-23. For 2022-23, the budget package reduces estimated costs of TK expansion by $257 million to reflect lower than anticipated TK attendance. For 2023-24, the budget package assumes LCFF costs will be $597 million above revised 2022-23 levels. (This assumes an additional 42,000 children will be enrolled in TK in 2023-24.) The budget also assumes $100 million in savings in 2022-23 and an additional $164 million in costs in 2023-24 associated with the requirement that school districts and charter schools maintain an average of one adult for every 12 students in TK classrooms across all school sites. Trailer legislation also includes a number of programmatic changes described in Figure 4.

Figure 4

Program Changes in Transitional Kindergarten (TK)

Type

Previous Requirement

New Requirement

10:1 Student to Adult Ratio

Effective 2023‑24, school sites must have an average of at least one adult for every ten students in TK classrooms.

Effective 2025‑26.

Teacher Early Childhood Requirements

Effective August 1, 2023, TK teachers must have a Child Development Teacher Permit, at least 24 units of early childhood education or child development, or comparable experience.

Effective August 1, 2025.

Early Admittance

Districts and charter schools cannot serve students that turn five after the end of the school year.

Districts can serve four‑year olds born between June2 and September 1 during the 2023‑24 and 2024­25 school year. Classrooms serving these children must have (1) at least one adult for every 10 students (2) no more than 20 total students.

Creates Equity Multiplier. The budget includes $300 million ongoing to provide additional funding for specific school sites. Funding is allocated based on prior-year enrollment at eligible school sites, with no school receiving less than $50,000. (Nonclassroom-based charter schools are excluded.) Beginning in 2024-25, the state would apply the same annual cost-of-living adjustment provided to other K-12 education programs. To be eligible, schools must meet the following criteria based on data from the prior year:

  • Have more than 70 percent of their student population classified as socioeconomically disadvantaged. A student is considered socioeconomically disadvantaged if neither of their parents has a high school diploma, or if they qualify for free or reduced-price meals under the federal National School Lunch program, are eligible for migrant education services, are homeless, are a foster child, or are enrolled in a county juvenile court school.

  • Have a nonstability rate greater than 25 percent. A school’s nonstability rate for a particular school year reflects the percentage of students enrolled at any point during the school year who, between July 1 and June 30 of that school year, are either enrolled for less than 245 continuous days or leave the school due to truancy, expulsion, or for unknown reasons.

Equity multiplier funding must be used for evidence-based services and supports for students, and must result in increased or improved services compared to what otherwise would have been provided to students in these schools. Funds also must supplement, not supplant, funding schools receive from LCFF, the Expanded Learning Opportunities Program, the Literacy Coaches and Reading Specialists Grant Program, and the California Community Schools Partnership Act. Beginning in February 1, 2025, the California Department of Education (CDE) must submit an annual report on student outcomes at equity multiplier schools. This report must include demographic data and performance of school sites, disaggregated by student subgroups, on the state indicators included in the California School Dashboard. As we discuss below, budget trailer legislation also requires local education agencies (LEAs)—school districts, charter schools, and county offices of education—to set specific goals for improving performance of low-performing student subgroups in equity multiplier schools through their Local Control and Accountability Plans.

Increase in Funding and Reporting Related to Alternative Schools Operated by County Offices of Education (COEs). The budget provides an 8.22 percent COLA for the COE funding formula. In addition to this amount, it makes several changes that increase funding COEs receive for court and county community schools. (Court schools serve students who are incarcerated, whereas county community schools primarily serve students who have been expelled from another school or involved with county probation.) The budget estimates the ongoing cost of these changes is $80 million. Specifically, the budget includes four major changes to funding for court and county community schools:

  • Base LCFF Funding. The budget increases base funding for court and county community schools to $16,395 per student, an increase of about $1,480 (10 percent) from the 2022-23 level adjusted for COLA. This is one-third higher than the rate school districts and charter schools receive for students in grades 9 through 12.

  • Declining Attendance Policy. The budget package adopts a policy of funding court and community schools according to their attendance in the current year, previous year, or average of three previous years (whichever is highest). This is similar to the existing policy for school districts. Under previous law, COEs received funding for these schools based on their current-year attendance only.

  • Minimum Grants. Within the COE LCFF, the budget also establishes a new grant providing $200,000 for each COE that operates at least one court school and another $200,000 for each COE that operates at least one county community school.

  • Student Support and Enrichment Block Grant. The budget also provides COEs with $3,000 per student for student support and enrichment through a new block grant outside of the COE LCFF. Funds can be used for a variety of activities, such as expanding access to career technical education, elective, world language, and A-G courses; college/career or transition counseling; mental health support services; and providing postsecondary options for incarcerated youth who have a high school diploma or high school equivalency certificate.

In addition to the funding increase for alternative schools, the budget package requires CDE to contract for an independent evaluation of court and county community schools and provide a report to the Legislature and administration by November 1, 2025. The report is to include a number of components, including an analysis of state and federal funding available for these schools and a sample cost-sharing agreement between COEs and county probation departments.

Funds Universal Meals Cost Increases. The budget package provides an increase of $154 million ongoing in 2023-24 and $110 million one-time in 2022-23 to fully fund the cost of implementing universal school meals. Specifically, these higher costs are associated with growth in the number of meals served that have a higher share of costs covered by state funds.

Makes Several Changes to School Accountability System. The budget includes several changes that affect district reporting requirements and the statewide system of support.

  • New Equity Leads. The budget provides $2 million ongoing to fund new equity leads within the statewide system of support. Through a competitive process, CDE and the California Collaborative for Educational Excellence (CCEE) are to identify two to four LEAs across the state to serve as equity leads. Equity leads will prioritize working with LEAs with schools receiving equity multiplier funding. These entities are to support LEAs through activities such as identifying barriers to meeting the needs of students, identifying resources to address disparities, and monitoring the impact of Local Control and Accountability Plan (LCAP) goals.

  • COE Differentiated Assistance Support Funding. The budget increases the base grant COEs receive to support districts in need of differentiated assistance from $200,000 to $300,000. (In addition to the base grant, each COE receives $100,000 to $300,000, depending on the size of the district, for every district identified as needing support within the county.)

  • Statutory Changes to Differentiated Assistance and System of Support. Budget trailer legislation includes several modifications to differentiated assistance and support districts are to receive if they have been identified for differentiated assistance. Figure 5 describes these changes in more detail.

  • LCAP Electronic Template. The budget also includes $148,000 ongoing to support improvements to the LCAP query tool and electronic template.

  • LCAP Requirements. Budget trailer legislation includes several changes to the content of LCAPs and the process for their adoption. Figure 6 describes these changes in more detail. These changes are intended to bring greater attention to equity multiplier schools, low-performing schools and subgroups, and to connect the LCAP with activities in differentiated assistance.

Figure 5

Changes to the System of Support

Previous Requirements

New Requirements

Duration of differentiated assistance

Eligibility for assistance is determined annually, based on most recent data.

Once eligible, assistance is provided for at least two years, even if improvement occurs after one year.

Differentiated assistance activities

Can include a review of performance data to identify effective, evidence‑based programs or practices to address any areas of weakness.

Can also include other activities such as providing assistance in identifying subgroups that are experiencing significant disparities, and a review of the most recent LCAP.

Role of geographic leads

Geographic lead supports COEs in providing differentiated assistance.

Geographic lead must provide assistance to a district that has been in differentiated assistance for three or more years based on the same subgroup.

Assistance from CCEE

Eligible for assistance from CCEE if requested by the COE.

If identified for differentiated assistance in three of four years for three or more student groups, CCEE is to determine if assistance from CCEE is necessary.

Release of School Dashboard data

No specific statutory requirement. Data used to identify districts for differentiated assistance is typically released by the end of the calendar year.

Data must be released by December 15 in 2023. Deadline slowly moved up, such that in 2026 data must be released by October 15.

LCAP = Local Control and Accountability Plan; COEs = county offices of education; and CCEE = California Collaborative for Educational Excellence.

Figure 6

Changes to Requirements for Local Control and Accountability Plans (LCAPs)

Previous Requirements

New Requirements

LCAP updates

Adopt an LCAP every three years in a public hearing and update annually on or before July 1.

Present a midyear report on the LCAP to the governing board, no later than February 28. Report must include a midyear update for metrics identified in the current LCAP and midyear expenditure and implementation data on all actions identified in the LCAP.

Goals

Develop goals centered around improving performance of subgroups that have been low performing for three or more years. Develop additional focused goals for low performing school sites that perform worse than the LEA as a whole.

Replace previous requirements for specific goals with focused goals. Develop focused goals for: (1) schools receiving equity multiplier funding, (2) schools that received the lowest performance level based on one or more state indicators, and (3) student subgroups that received the lowest performance level based on one or more state indicators, either LEA‑wide or at a school. Focused goals for equity multiplier schools must be specific to improving performance for low performing student subgroups and addressing any issues with teacher credentialing and preparation.

Actions

Review progress towards meeting goals specified in LCAPs. Assess the effectiveness of actions taken and describe any changes to actions as a result of the review and assessment.

Change actions that have not been effective towards meeting their intended goal over a three year period.

LEA‑wide actions

Provide additional justification for allocating supplemental and concentration grant funding on a districtwide, charterwide, or countywide basis. Must show that funding is used to improve or increase services for students.

Identify one or more specific metrics to monitor the intended outcome of actions and budgeted expenditures at the districtwide, charterwide, and countywide level.

Summary of differentiated assistance

None.

Include summary of differentiated assistance activities in LCAP.

LEA = local education agency.

Funds Requirement to Stock Opioid Reversal Medication. The budget provides $3.5 million in ongoing funding to support the purchase of opioid reversal medication (e.g., naloxone). Funds will be allocated to COEs, which are responsible for procuring the medication and providing and restocking at least two units for each middle and high school under their jurisdiction. The Superintendent of Public Instruction is to develop a formula for allocating funds that takes into consideration the number of applicable school sites, and enrollment in those school sites, in each county. Up to $350,000 can be used by COEs for administrative costs.

Other Ongoing Increases. The budget package includes several other minor ongoing Proposition 98 increases in K-12 education.

  • High Speed Network. The budget provides $3.8 million on an ongoing basis to primarily backfill the ramp down of temporary funds for K-12 High Speed Network program activities.

  • California School Information Services (CSIS). The budget increases funding for CSIS by $2.1 million, bringing the total appropriation in 2023-24 to $8.6 million. This increase is intended to cover inflation-related increases for existing services and costs related to reporting accountability data on an accelerated schedule.

  • California College Guidance Initiative (CCGI). The budget provides a $2 million augmentation (bringing total Proposition 98 funding to $18.6 million) to hire additional CCGI personnel to support the full-scale implementation of the college planning online platform, CaliforniaColleges.edu. Trailer legislation requires the California Student Aid Commission (CSAC) provide CCGI with specific student financial aid data to better align reports across CSAC and CCGI, and allows CCGI to provide its services to all local educational agencies. Additionally, the budget package amends 2022-23 budget bill language to include higher education campuses as eligible entities for collaborative partnerships with CCGI. (Previously, CCGI was only authorized to develop partnerships with COEs.)

  • California Newcomer Education and Wellbeing (CalNEW). The budget includes a $1.9 million ongoing increase for CalNEW, bringing total ongoing funding to $6.9 million. The Department of Social Services—in collaboration with CDE—administers the program. This program allocates funding to school districts and COEs to provide services for refugees, unaccompanied undocumented minors, and immigrant families.

  • Antibias Grants for Museum of Tolerance. The budget increases ongoing funding to the Los Angeles COE for antibias training and professional development for education professionals from $2 million to $3 million.

  • Fiscal Crisis and Management Assistance Teams (FCMAT). The budget increases funding for FCMAT by $750,000, bringing the total appropriation in 2023-24 to $7.5 million. The increase has three components: (1) $600,000 to cover salary increases and inflationary pressure for existing services, (2) $125,000 to support a new Coaching and Induction Program for newly appointed chief business officials, and (3) $25,000 to develop a mentor program for aspiring chief business officials in small school districts.

One-Time Spending

The budget also includes several one-time Proposition 98 augmentations for schools.

Makes Reductions to Previously Approved Block Grants. The June 2022 budget provided $7.9 billion for the Learning Recovery Emergency Block Grant. Trailer legislation allocated this funding based on enrollment of English learners and low-income students and allowed funds to be spent on various learning recovery initiatives through 2027-28. The June 2023 budget reduces this grant by $1.1 billion but indicates the Legislature intends to restore the original amount over the following three years. The June 2022 budget also provided more than $3.6 billion for the Arts, Music, and Instructional Materials Discretionary Block Grant. Trailer legislation allocated this funding on per-student basis and allowed funds to be spent on a range of activities through 2025-26. The June 2023 budget reduces this grant by $200 million on a permanent basis.

Reduces Previous Funding for Zero-Emission School Buses. The June 2022 budget established a $1.5 billion program administered by the California Air Resources Board and the California Energy Commission to fund zero-emission school buses and related infrastructure (such as charging stations). Trailer legislation required the agencies to allocate this funding to school districts through a competitive process over several years. The June 2023 budget reduces funding for this program by $1 billion but indicates the Legislature intends to restore funding in 2024-25 and 2025-26.

Provides Additional Funding for Literacy Programs and Activities. The budget includes an additional $248 million to further support the recently established Literacy Coaches and Reading Specialists (LCRS) program, which reflects more than a doubling of program funds. These funds will be used to extend eligibility to elementary schools that have not previously received LCRS program funding and have a student body where at least 95 percent of students are low-income or English learners. Additionally, these funds will be available for encumbrance through June 30, 2028. The budget also includes $2 million to (1) increase funding for statewide training services for educators to become literacy coaches and reading and literacy specialists, and (2) provide up to $500,000 to conduct an independent evaluation of the effectiveness of the LCRS program. Finally, trailer legislation requires LEAs to screen students in kindergarten through second grade for risk of reading difficulties by the 2025-26 school year. To support this future requirement, the budget provides $1 million to convene an independent panel of experts to create a list of approved screening instruments LEAs can use to assess a student’s risk of reading difficulties.

Funds Charter School Facility Grant Program. The Charter School Facility Grant Program helps charter schools located in privately-owned facilities pay for rent and lease costs. The program also funds maintenance and certain types of facility improvements when funding is available. The June 2023 budget provides a $10 million augmentation for this program, bringing the total appropriation in 2023-24 to $194 million. Of the total, the budget identifies $30 million as one-time funding specifically to support facility maintenance and improvement costs. (The state also provided $30 million in one-time funding in the previous year.)

Bilingual Teacher Professional Development Grant. In 2017-18, $5 million was provided on a one-time basis to create the Bilingual Teacher Professional Development Program to support teachers pursuing authorization to teach bilingual and multilingual classes. These funds were available through 2019-20. The 2023-24 budget provides $20 million one-time funds to continue to support the Bilingual Teacher Professional Development Program. These funds are available through 2028-29. CDE will submit a preliminary and final program evaluation report on July 1, 2026 and January 1, 2030, respectively.

Provides Commercial Dishwasher Grants. The budget provides $15 million for LEAs to purchase or install commercial dishwashers. Grants will be provided through a competitive process and are intended to reduce single-use plastic in nutrition programs. LEAs may receive up to $40,000 per kitchen of a school site.

Diverse Education Leaders Pipeline Initiative. The budget provides $10 million to establish the Diverse Education Leaders Pipeline Initiative to train, place, and retain diverse and culturally responsive school administrators. As a part of this initiative, the Commission on Teacher Credentialing (CTC) will award through a competitive application process up to $30,000 to LEAs to provide support and mentorship to current or prospective school administrators. Grant recipients can use funds to provide coaching, training, and mentoring activities, develop support systems for a diverse administrator workforce, and pay for administrator program or credentialing costs. The CTC shall evaluate the program and submit a report to the Legislature on or before June 30, 2027.

Restorative Justice. The budget provides a one-time allocation of $7 million to support the implementation of restorative justice programs in schools. Trailer legislation makes this funding available through a competitive grant process and requires interested applicants to follow best practices developed by the State Superintendent of Public Instruction. Each applicant is eligible for a grant of up to $100,000.

Golden State Teacher Grant Program. The Golden State Teacher Grant program provides scholarships of up to $20,000 to students in teacher preparation programs who commit to working at a priority school for at least four years. (“Priority school” is defined as a school where at least 55 percent of students are low-income, English learners, or foster youth.) The budget adds $6 million one-time federal Individuals with Disabilities Education Act funding for this program to provide more scholarships for prospective special education teachers. In addition, trailer legislation makes several changes to the program. Most notably, it makes awards of up to $10,000 available to students enrolled in certain online teacher preparation programs based outside California that were not previously eligible for the program. It also allows recipients to complete their service requirement at either a state- or federally-funded preschool or a priority school.

Various Other One-Time Spending Increases. The budget also includes several minor one-time increases for schools.

  • State Special Schools. The budget provides $2 million to support the California School for the Deaf in Fremont.

  • One-Time Funding for Districts Affected by Kincade Fire. The budget provides $632,000 to offset reductions in property tax revenue experienced by basic aid school districts affected by the Kincade Fire, a wildfire that burned in Sonoma County in the fall of 2019. (Non-basic aid districts affected by fires receive property tax backfills automatically through LCFF.)

  • Digital Learning and Standards Integration Guidance. The budget provides $100,000 for the Sacramento County Office of Education, in consultation with the State Board of Education and CDE, to update distance learning curriculum and instructional guidance for mathematics in alignment with the new mathematics framework adopted by the State Board of Education.

Other Changes

The budget package also includes several statutory changes that have no direct state costs.

  • Teacher Residency Program. Trailer legislation makes the following changes to the Teacher Residency program: (1) allows candidates to serve in any California school for at least 4 years to fulfill the service requirement, (2) increases grant amounts from $25,000 to $40,000 per residency candidate, (3) requires candidates receive at least $20,000 in compensation during and after 2023-24, and (4) extends the program evaluation deadline by two years (to December 30, 2029).

  • Teacher Performance Assessment (TPA) Waiver for COVID-19 Teacher Candidates. During the COVID-19 pandemic, the state temporarily waived the TPA requirement for both preliminary single subject and multiple subject credential candidates. Trailer legislation permanently exempts candidates who received a COVID-19 TPA waiver from completing the TPA if they completed a commission-approved induction program on or before June 30, 2025 or completed two years of service with satisfactory teacher evaluations on or before June 30, 2025.

  • Moratorium on New Special Education Local Plan Areas (SELPAs). Trailer legislation extends the moratorium on creating new single districts SELPAs for an additional two years—from July 1, 2024 to July 1, 2026.

  • SELPA Spending Cap. Trailer legislation requires SELPAs to allocate at least the same amount of base funding to their members as they did in 2022-23, adjusted for growth and COLA.

  • Changes to Expanded Learning Opportunities Program (ELOP) Requirements. Trailer legislation extends the expenditure and encumbrance deadline for 2021-22 ELOP funds from June 30, 2023 to June 30, 2024. The expenditure and encumbrance deadline for 2022-23 ELOP funds remains June 30, 2024. Additionally, trailer legislation makes several changes related to licensure and reporting for ELOP. Operators with a current child daycare facility license or special permit must maintain that license or permit capacity until June 30, 2024, while all other ELOP operators are generally exempt from child daycare facility licensing or special permit requirements. In addition, trailer legislation requires third-party ELOP operators to submit program information to California Department of Social Services and immediately report any health and safety-related issues to its LEA partners. Finally, the Superintendent, in consultation with the Department of Social Services, must submit a report to the Legislature by February 1, 2024 that includes a variety of information related to expanded learning providers operating on a site that is not an LEA, such as the number of students enrolled and the number of providers.

  • Three Notable Changes Affecting Charter School Authorization. Budget trailer legislation extends by one year the term of any charter school that otherwise would be up for renewal between January 1, 2024 and June 30, 2027. It also extends the moratorium on new nonclassroom-based charter schools by an additional year (through January 1, 2026). Finally, it narrows the circumstances under which the State Board of Education may overturn a school district or county board decision to reject a new charter school or deny renewal to an existing charter school.

  • Substitute Teacher Flexibility. Trailer legislation extends—until July 1, 2024—temporary rules that allow substitute teachers to serve up to 60 days in any one assignment, as long as they are assigned. State regulations ordinarily allow substitute teachers to work continuously in one assignment for a maximum of 30 days. (These temporary rules were first enacted in 2021-22.)

Non-Proposition 98 Spending

Provides $2 Billion for School Facilities Program (SFP). The 2022-23 budget package provided $1.3 billion one-time non-Proposition 98 General Fund to cover the state share for new construction and modernization projects under the SFP. The 2022-23 budget package also included intent language to provide an additional $2.1 billion in 2023-24 and $875 million in 2024-25. The budget provides about $2 billion to the SFP in 2023-24, which is $100 million less than the previously intended augmentation, and continues to assume an additional $875 million will be provided in 2024-25. Trailer legislation allows the Department of General Services to use up to $15 million of the recent SFP one-time augmentations for administrative costs. The budget also delays the intended $550 million increase to the California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program from 2023-24 to 2024-25.

Supports New and Ongoing Workload at CDE. The budget provides CDE with 45 additional positions and an associated $21.5 million ($15.3 million non-Proposition 98 General Fund, $6 million federal funds, and $150,000 special funds) to accommodate new workload. Notable augmentations include $5.9 million to increase staff to develop and implement a data collection system for school-based State Preschool programs, $2.2 million to fund a third-party vendor to pay State Preschool providers through direct deposit, $1.3 million to increase staffing for teacher data reporting, and $1.2 million to establish a data science office. A list of all new K-12 workload for the department is on our EdBudget website.

Provides One-Time Increases for CTC. The budget includes $3.4 million one-time non-Proposition 98 General Fund to backfill special fund revenue shortfalls resulting from declining teacher credential fees. The budget also includes $690,000 non-Proposition 98 General Fund on a one-time basis to support the relocation of CTC to the Richards Boulevard Office Complex in January 2025. Additionally, the budget permanently eliminates the Test Development and Administration Account and shifts funding into the Teacher Credentials Fund.

Funds Holocaust and Genocide Education. Trailer legislation appropriates $1.5 million non-Proposition 98 General Fund to support the California Teachers Collaborative for Holocaust and Genocide Education in developing and providing resources and providing professional development related to genocide and Holocaust education.

Funds Development of Literacy Roadmap. The budget includes $1 million non-Proposition 98 General Fund on a one-time basis to create a Literacy Roadmap to help educators identify and effectively use literacy resources in their classrooms. CDE is to develop the roadmap in consultation with the executive director of the State Board of Education, and is to solicit the input of literacy experts and practitioners.

Funds Study of Students With Disabilities in Alternative Schools. The budget provides $350,000 in federal funds for the Superintendent to convene a workgroup on meeting the needs of students with disabilities enrolled in juvenile court and county community schools. The department is to submit a report with findings and recommendations by February 25, 2025.

Funds Development of TPA for Special Education Candidates. The budget provides $612,000 from the Teacher Credentials Fund to cover the final payment of a multi-year contract to develop a TPA for candidates seeking a special education credential.

Differentiated Assistance Evaluation. Provides $100,000 non-Proposition 98 General Fund to expand upon the differentiated assistance evaluation released January 2023. The state provided $400,000 for the initial evaluation in 2021-22. The Superintendent is to provide a report with the results of the extension by July 1, 2024