Assessments
Governor’s budget continues most commitments to TK-12 education
Despite budget shortfall, proposal outlines $108.8 billion for schools
Gov. Gavin Newsom released his 2023–24 Budget Proposal on Jan. 10, outlining a $297 billion budget and officially kicking off the budget season. Despite a slowing economy and what the Newsom Administration projects to be a $22.5 billion state General Fund shortfall, the budget continues many of the state’s commitments to TK-12 education without making any discretionary withdrawals from the Proposition 98 rainy day fund.

The Governor’s plan proposes $108.8 billion in Prop 98 funding for 2023–24, a decrease of approximately $1.5 billion relative to the 2022 Budget Act.

The proposal also includes a Local Control Funding Formula cost-of-living adjustment (COLA) of 8.13 percent, an increase of $4.2 billion in discretionary funds for local educational agencies when combined with growth adjustments. To fully fund this increase and to maintain current year LCFF apportionments, the plan provides $613 million in one-time funds to support the ongoing cost of LCFF in 2022–23 and approximately $1.4 billion in one-time funds in 2023–24.

“CSBA appreciates the Governor continuing to honor the state’s prior commitments to TK-12 education,” said CSBA CEO & Executive Director Vernon M. Billy. “A fully funded COLA as well as resources dedicated to learning recovery, extended school programs, universal school meals and special education are essential to help students rebound from the pandemic. Yet, at this critical time, schools also require increased mental health supports, more ambitious initiatives to address the staffing shortage, and greater funding for cybersecurity and pension relief that will allow them to direct more funding to the classroom and student services.”

LCFF equity multiplier
The budget includes $300 million ongoing Prop 98 General Fund to create an “equity multiplier” as an LCFF add-on. Funds will be distributed to LEAs with schools serving high concentrations of students eligible for free meals (90 percent or more free meal eligibility for elementary and middle schools and 85 percent or more for high schools). Funds are intended to augment resources for the highest-need schools.

LEAs with eligible schools would be required to use the funding on services and supports that directly benefit the eligible school(s). In addition, the LEA will be required to engage with parents and communities to plan how to use the money at the school(s) generating the funds through the Local Control and Accountability Plan (LCAP). The plan must specifically address any underlying issues in the credentialing and preparation of the schools’ educators and for student groups in the ‘red’ and ‘orange’ performance categories on Dashboard indicators.

Continued TK expansion
Entering the second year of the state’s four-year commitment to implementing universal transitional kindergarten (UTK), children who turn 5 years old between Sept. 2 and April 2 (approximately 46,000 additional children) will be eligible for TK beginning in the 2023–24 school year. To reflect this growth, the Governor proposes continuing his year-over-year commitment to rebench the Prop 98 Guarantee upward to reflect this growth in enrollment by 0.3 percent, from 38.3 percent to 38.6 percent, of the General Fund.

For the 2023–24 school year, the Governor’s budget proposes $690.4 million to implement the second year of UTK and $165 million to support the addition of one additional certificated or classified staff person in TK classrooms while maintaining the existing 12:1 adult-to-student ratio. Full implementation of UTK is expected in 2025–26.

The Governor’s Budget Proposal also delays to 2024–25 $550 million in one-time General Fund allocated in the 2022–23 budget to help schools construct TK, full-day kindergarten or preschool classrooms.

Special education base funding
The proposed budget continues the special education base funding increases from the last few years and provides an 8.13 percent COLA. The Newsom Administration also proposes programmatic changes regarding budgeting and reporting transparency for Special Education Local Plan Areas (SELPAs); however, language reflecting these changes is not yet available.
Home-to-school transportation funding remains
Included in the proposal is the $637 million commitment to fund 60 percent of approved costs for the home-to-school transportation program, including a COLA for the transportation add-on to LCFF.
Proposition 28 implementation
To implement the voter-approved Proposition 28, known as the Arts and Music in Schools – Funding Guarantee and Accountability Act, the budget includes $941 million to increase arts programs and instruction in public schools. This amount is in addition to and on top of the Prop 98 Guarantee, which will be rebenched to include these funds in subsequent fiscal years. Further, the Governor’s proposal also includes $100 million in one-time funding to increase access to cultural events for 12th-grade students, such as visits to performances and museums.

Gov. Newsom’s Budget Proposal also includes a reduction of approximately $1.2 billion in Prop 98 funding from the Arts, Music, and Instructional Materials Discretionary Block Grant included in the current year Budget Act.

“It’s unfortunate that the Governor elected to cut the Arts, Music and Instructional Block Grant by $1.2 billion — or roughly a third of the previous grant — when the option of using the Proposition 98 reserve was available,” said CSBA President Susan Markarian. “At a time when school districts and county offices of education need funding and flexibility to adapt programs and services to the specific needs of their students and local communities, it’s difficult to learn that schools may lose this critical funding source after the budget development cycle has already started.”

Increase access to literacy staff
The Governor is proposing to target $250 million in one-time Prop 98 General Fund to increase access to literacy staff in several hundred more schools in high-poverty areas. The proposed budget also includes $1 million to support educators in utilizing new and existing literacy resources through the creation of a Literacy Roadmap.
Cybersecurity
The Newsom Administration is proposing $28.7 million to enhance the capacity of the California Cybersecurity Integration Center (Cal-CSIC), which serves as the state’s hub for cybersecurity preparedness and response activities and coordinates cyber intelligence and information sharing with local, state and federal agencies and institutions. Although not specific to schools, the funding increase will allow Cal-CSIC to increase efforts to identify and mitigate cyberthreats, including enhanced threat detection, assessment and research along with incident analysis and response.
No pension relief for school employers
The proposed budget does not provide any funding to buy down school employer pension contribution rates in the state’s public retirement systems. The amount of the state’s annual contributions to CalSTRS, as required by current law, are proposed to be increased approximately $218 million for a total of $3.9 billion in General Fund. It also makes no changes to major programs established or expanded in recent years including grants and programs for a variety of teacher and staff recruitment and retention programs, the Expanded Learning Opportunities Program and universal meals.
What’s next?

Much of the detail regarding the Governor’s Budget Proposal will be in trailer bills, which should be available in early February. By May 15, Gov. Newsom will release his May Budget Revision, and negotiations between his Administration and the Legislature will be ongoing until the June 15 deadline for the Legislature to pass the budget bill. The Governor will then have until July 1 to sign it.

Back to Newsletter