CSBA advocacy prevails in budget deal

Legislation

Wins include improved funding for COE-operated schools and less severe cuts to grants

The long and winding road to the state budget was completed on July 10, as Gov. Gavin Newsom signed the final set of budget bills into law.

After passing an initial budget bill, Senate Bill 101, on June 15, Gov. Gavin Newsom and the Legislature reached a final agreement on the 2023–24 state budget in late June. The final deal, executed in two follow-up bills known as “Budget Bill Jr.” and numerous budget trailer bills, retained most of the priorities emphasized by CSBA and filled in some of the finer details on figures and policy changes negotiated by the Legislature and Governor. Despite the tough revenue outlook faced in this year’s negotiations, CSBA’s advocacy — including the hundreds of members who met with the Legislature during the 2023 Legislative Action Week and in local meetings throughout the budget cycle — found success in the final budget.

Funding for COE-operated schools

Among the most important wins for CSBA members is the provision of a new funding model to support juvenile court and county community schools, a key budget ask spearheaded by CSBA, the California County Superintendents and the Los Angeles County Office of Education. The new funding model will increase the Local Control Funding Formula base rate for county office of education’s (COE) average daily attendance (ADA); use an altered ADA calculation for COE juvenile court and county community schools based on the greater of the current, prior or average of the three most recent prior fiscal years; provide a base allocation of $200,000 for a COE operating one or more juvenile court schools or community schools; and create a block grant equivalent to $3,000 per-juvenile court or community school ADA.

The education trailer bill also adds new accountability measures along with this funding, including standards for court school intake and transition plans, higher education offerings and data reporting. The final budget notably did not include an effort to delay the funding until the 2024–25 school year nor make it contingent upon further legislation as was proposed in earlier versions of the Assembly proposal — two sticking points during legislative negotiations that CSBA advocacy was successful in resolving. These needed funds will help stabilize funding for juvenile court schools and county community schools that, while serving different populations, both help provide improved educational outcomes for some of California’s most vulnerable students.

Cuts to vital block grants minimized

CSBA advocacy was also key to the reduction of proposed cuts to the Arts, Music, & Instructional Materials (AMIM) Discretionary Block Grant and the Learning Recovery Emergency (LRE) Block Grant. The final deal restores most of the cuts proposed to the AMIM Block Grant in line with the Legislature’s proposal, for a reduction of $200 million rather than the $1.8 billion proposed in the May Revision. The final 5.5 percent reduction to funding is a significant win when compared to the 50 percent cut proposed by the Governor in May.

Among the most important wins for CSBA members is the provision of a new funding model to support juvenile court and county community schools.

The budget also struck a compromise to reduce the LRE Block Grant by $1.6 billion (20.2 percent), rather than the $2.5 billion proposed by the Governor or the $494.5 million proposed by the Assembly. The education trailer bill also includes language declaring the Legislature’s intent to allocate $379 million in 2025–26 and 2027–28 for the grant. At a time when local educational agencies across the state need funding and flexibility to adapt programs and services to the specific needs of their students and local communities, shielding these grants from cuts despite declining revenues is critical.

a class of high school aged student sitting at desks and looking toward the teacher at the head of the class

COLA and continued program investment

CSBA advocacy to fully fund the LCFF cost-of-living adjustment (COLA) and remain focused on ensuring successful implementation of the large programs undertaken in recent years also paid off. The final deal honors the statutory COLA at 8.22 percent for LCFF and specified categorical programs, including special education and home-to-school transportation. The budget also maintains funding for the major program expansions made in recent years, such as universal transitional kindergarten implementation, universal school meals and more, shielding them from the impact of the state’s declining revenue projections and protecting many of the investments needed for schools to continue to accelerate learning recovery.

Trailer bills and revenue uncertainty

Unlike in a typical budget year, further changes to the budget deal may be needed this fall as the state continues to face uncertain revenues. Complicating matters is the state’s delayed tax filing deadline, which was extended until Oct. 15 to provide relief for Californians affected by severe winter storms. The extension will delay an accurate count of the state’s revenues, potentially requiring a revision of the budget included as a part of the Governor’s January Budget Proposal if funds fall short of what’s expected. As the situation develops, CSBA’s Governmental Relations team is ready to continue to advocate for a budget that meets the needs of California’s students and schools.

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