Budget Agreement Maintains the Minimum Funding Level for Schools and Community Colleges in the May Revision
Approved by voters in 1988, Proposition 98 constitutionally guarantees a minimum level of funding for K-12 schools, community colleges, and the state preschool program. The 2013-14 budget agreement assumes a Proposition 98 funding level of $56.5 billion for K-14 education programs in 2012-13 and $55.3 billion in 2013-14. These are approximately the same levels included in the Governor’s May Revision, but significantly above the $47.2 billion Proposition 98 funding level in 2011-12. Specifically, the budget agreement:
· · Provides $4.3 billion over two years to partially restore previously deferred payments to schools and community colleges. In 2011-12, $10.4 billion in annual Proposition 98 payments to K-14 schools (21 percent of the total Proposition 98 funding level) were delayed until 2012-13. Of these deferred payments, the budget agreement repays schools and community colleges $4.0 billion in 2012-13 and $272 million in 2013-14. Outstanding payment deferrals at the end of 2013-14 – that is, the amount the state still owes schools and community colleges – will be $6.2 billion under the budget agreement.
· · Provides $2.1 billion in 2013-14 Proposition 98 funds to begin implementation of the Local Control Funding Formula (LCFF). The LCFF restructures the state’s education finance system by providing all school districts with a base grant per student, adjusted to reflect the number of students at various grade levels, as well as additional resources to reflect the higher costs of educating English learners, students from low-income families, and foster youth.
· · Provides $1.25 billion in one-time funding to support implementation of the Common Core State Standards (CCSS), $250 million more than was included in the Governor’s May Revision. In August 2010, the State Board of Education adopted CCSS for California’s K-12 schools. The budget agreement provides school districts and county offices of education (COEs) with CCSS implementation funding of $1.0 billion in 2012- 13 Proposition 98 dollars and $250 million in 2013-14 Proposition 98 dollars. These funds are provided on a per pupil basis and may be used at any time during 2013-14 or 2014-15. The budget agreement requires school districts and COEs to:
o UseCCSSimplementationdollarsforspecificpurposes,includinginstructionalmaterialsandprofessional development for teachers, administrators, and other staff involved in the direct instruction of students;
o AdoptaplandelineatinghowCCSSimplementationdollarswillbespent;and o ReportbyJuly1,2015howCCSSimplementationdollarswerespent.
· · Provides $428 million in Proposition 98 funds – from Proposition 39 revenue – for energy efficiency programs in schools and community colleges. Approved by voters in November 2012, Proposition 39 (the California Clean Energy Jobs Act) provides for the transfer of up to $550 million annually from the General Fund to a Clean Energy Job Creation Fund. The 2013-14 budget agreement provides $381 million of these funds to the California Department of Education for allocation to school districts and COEs and $47 million to the California Community College Chancellor’s Office for allocation to community college districts. Of the dollars provided to school districts and COEs, 85 percent must be allocated based on average daily attendance and 15 percent based on students eligible for free and reduced-price meals. In addition, the budget agreement provides $28 million in Proposition 98 funds – also from Proposition 39 revenue – to the California Energy Commission to support low- interest and no-interest revolving loans for eligible energy projects at, and technical assistance for, schools and community colleges.
Note: At time of publication, budget trailer bills covering education and higher education have been transmitted to
the Governor but have not yet been signed.
Analysis by the California Budget Project.