Following the release of Gov. Gavin Newsom’s January Budget Proposal is the budget trailer bills, which detail the specific statutory and policy elements found in the proposal. Required by law to be released by Feb. 1 each year, this year’s trailer bills give greater clarity to some of the Governor’s significant budget proposals.

Included in the Governor’s budget announcement was a significant proposal to fundamentally change how public education is governed at the state level. Announced during his State of the State address, Gov. Newsom proposed moving the responsibility of overseeing the California Department of Education (CDE) from the state superintendent of public instruction (SSPI) to the State Board of Education (SBE).

For the last 175 years, the SSPI has been the figurehead of California’s public education system, serving as its executive director and administrator over state and federal programs and funding. However, over the past 50 years, numerous reports have highlighted the fragmented way in which the state has governed public education with a governor and SSPI both elected as state constitutional officers, creating a bifurcated governance structure over public education. Things become more convoluted when considering the role of the SBE, a body in which all of the members are appointed by the governor.

In response to growing concerns about the fragmentation of public education is overseen governance, Gov. Newsom has proposed a paradigm shift in how public education at the state level. Specifically, as provided in the education trailer bill, the following is proposed:

• Remove all statutory authority of the SSPI as executive officer over the CDE and as secretary to the SBE and replace that position with an education commissioner, to be appointed by the governor.
• The education commissioner will be vested with the authority to oversee all state and federal grants and programs and directly report to the governor and SBE.
• Provide the governor the ability to appoint 16 deputies to the education commissioner and transfer SBE staff to the CDE, which will be overseen by the education commissioner.
• Eliminate one voting position on the SBE and replace it with the SSPI, which currently serves as an ex-officio member, and elevate the SSPI from an ex-officio member to a voting member on the California Community College Board of Governors.
• Establish a deputy SSPI and three new associate superintendents that will be appointed by the SBE, as well as one additional deputy superintendent and another undescribed employee to be appointed by the SSPI.

In welcome news, and for the second year in a row, the state is proposing another Student Support and Professional Development block grant in the amount of $2.8 billion, which equates to just over $500 per pupil. Similar to what was included in the current 2025–26 budget, local educational agencies are encouraged to use this funding for student support or professional development programs; however, the funds are proposed to be fully discretionary and may be use for “growing operational costs.” Funds would have to be fully expended by June 30, 2030.

The Governor’s proposal to put in place greater oversight of charter schools, namely nonclassroom-based (NCB) charter schools, comes on the heels of his veto of Senate Bill 414, a measure that received strong support from charter school advocates. The bill included changes favored by its backers to the oversight, auditing and funding systems for NCB charter schools. It would have expanded certain auditing procedures and established a new Office of the Education Inspector General.

Citing several high-profile cases of fraud by NCB charter schools, the Governor in his veto message stated that the bill fell short. Specifically, he wrote that, “while the oversight and auditing provisions are meaningful, other sections are unworkable, would face legal challenges, and require hundreds of millions of dollars to implement.” Gov. Newsom also went on to say that the bill would have undermined advancements made by charter reform legislation he signed during his first term, ostensibly referring to Assembly Bill 1505 and AB 1507 from 2017, which put in place needed charter school oversight reforms.

The budget trailer bill language includes increased auditing and oversight requirements. Notably, the Governor’s proposal would apply enhanced auditing standards to all LEAs. Although this would create greater uniformity across LEAs with the intent of instituting new guardrails to prevent fraud and fiscal malfeasance, it does not take into account the increased oversight and accountability requirements that would be expected of charter authorizers.

A fundamental issue facing many charter authorizers is the need for increased funding and resources to ensure proper oversight of charter schools, including NCB charter schools. This would also impact smaller school districts disproportionately, especially those that cover vast geographic areas that could be forced to redirect money intended for other students and programs to cover increased charter school oversight responsibilities.

The trailer bill language would also provide charter schools the ability to use verified data in their charter renewal proceedings through June 30, 2028. Verified data is assessment data used by the charter school outside of the California Assessment of Student Performance and Progress, which the chartering authority may use in its decision to renew the charter school. The data must be able to show measurable increases in academic achievement or strong postsecondary outcomes for the students they serve.

The Legislature has begun reviewing the Governor’s proposed budget. By May 15, Gov. Newsom will release his May Budget Revise, 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.