Create CA’s Update on the 2023-24 State Budget and Prop 28 Trailer Bill

2023-24 State Budget and Prop 28 Trailer Bill

Governor Newsom has signed SB 101, a $310 billion state budget for 2023-24. The budget provides Prop 98, which sets general funding for TK-12 education, $108.3 billion for 2023-24, approximately $2 billion less than budgeted for the 2022-23 fiscal year. The budget covers the $30 billion deficit, spares public education from significant cuts, and funds additional education investments such as a cost of living adjustment and equity multiplier (which provides additional funding for the highest poverty schools). 

The budget restores much of the proposed cut to the Arts, Music, and Instructional Materials Discretionary Block Grant proposed by Governor Newsom in his May Revise. The final cut will be $200 million, and the block grant now totals $3.36 billion. The budget also funds three new positions at the California Department of Education (CDE) for implementing Prop 28 – two in the fiscal services division and one in early education. 

The Prop 28 trailer bill, part of SB 115, was signed by the Governor in July. The language is similar to what we expected based on prior requests for clarification from the California Department of Education.

Here is a summary of the updates from the Prop 28 trailer bill:

• The amount required to be appropriated… shall be considered final as of the annual May Revision of the Governor’s Budget for the subsequent fiscal year.
• Defines a preschool pupil as a pupil enrolled in the California state preschool program or a pupil 3 through 5 years of age enrolled in a preschool program for pupils with exceptional needs in a local educational agency.
• The bill requires unexpended funds to revert to the department (CDE), including in the event of a closure of a charter school.
• The bill requires local educational agencies to report to the department [unexpended funds following the conclusion of the 3-year-expenditure period and would authorize the department to withhold the release of allocation until the LEA (Local Education Agency) has submitted the expenditure report.
• It also shifts the responsibility for requesting a waiver from a principal of a school site to an LEA.

 

Here is a summary of other significant actions in the budget for K-12 & Teacher Preparation.

K-12 Education

• Reflects Proposition 98 funding levels of $110.6 billion in 2021-22, $107.4 billion in 2022-23, and $108.3 billion in 2023-24.
• Provides an LCFF cost-of-living adjustment of 8.22%—the largest cost-of-living adjustment in the history of LCFF. This adjustment, when combined with declining enrollment adjustments, increases year-over-year discretionary funds available to local educational agencies (LEAs) by approximately $3.4 billion.
• Provides $300 million ongoing Proposition 98 General Fund to establish an Equity Multiplier as an add-on to the LCFF to accelerate gains in closing opportunity and outcome gaps, and $2 million ongoing Proposition 98 General Fund to support the critical work of the new Equity Leads within the statewide system of support.
  • Requires, by March 1, 2024, the California Collaborative for Educational Excellence, and the department to select local educational agencies, or a consortium of local educational agencies, to serve as Equity Leads within the system of support, as provided. The bill requires Equity Leads to have certain responsibilities, including, among others, to support the work of local educational agencies, prioritizing those with schools receiving Local Control Funding Formula Equity Multiplier funding, as specified, in developing and implementing programs and supports that address racial disparities in opportunities and academic outcomes. (Trailer Bill – SB 114)
• Reflects approximately $357 million ongoing Proposition 98 General Fund to support the first year (the 2022-23 school year) of expanded eligibility for transitional kindergarten, shifting age eligibility from all children turning five-years-old between September 2 and December 2 to all children turning five-years-old between September 2 and February 2 (roughly 29,000 children).
• Maintains funds for universal school meals, transitional kindergarten, community schools, and before- and after-school and summer programs.
• Appropriates $148,000 on-going from the General Fund to the department for the maintenance and support of the Local Control and Accountability Plan Electronic Template.
• Delays approximately $1.1 billion one-time Proposition 98 General Fund for the Learning Recovery Emergency Block Grant to the 2025-26, 2026-27, and 2027-28 fiscal years. 
• Provides $119.6 million one-time federal funds to support LEA activities related to improving school climate and safety through the Bipartisan Stronger Connections Program.
• Provides $20 million one-time Proposition 98 General Fund, to be available through the 2028-29 fiscal year, to support the Bilingual Teacher Professional Development Program.
• Provides $7 million one-time Proposition 98 General Fund to provide support for LEAs opting to implement the restorative justice best practices that will be developed and posted by June 1, 2024, pursuant to Chapter 914, Statutes of 2022 (AB 2598).
• Provides $2 million ongoing Proposition 98 General Fund to support the California College Guidance Initiative via Student Friendly Services.
• Revises a template for a local control and accountability plan (LCAP) and an annual update to the LCAP to, among other things, require a summary of the stakeholder engagement process, including stakeholders at schools generating Local Control Funding Formula Equity Multiplier funding, as specified. Requires school districts, county offices of education, and charter schools, commencing with 2024–25 local control and accountability plans, to include certain actions in the LCAP when a school or pupil group within a LEA, or a pupil group within a school, received the lowest performance level on one or more state indicators on the California School Dashboard, as provided, and, for LEAs receiving Local Control Funding Formula Equity Multiplier funding, specific goals for each school generating that funding, as provided. (TB – SB114)

 

Teacher Preparation – policy and programmatic changes (SB 114)

• Provides $6 million one-time federal funds for the Golden State Teacher Grant Program which provides grants to teacher candidates enrolled in a special education teacher preparation program who agree to teach at a high-need school site.
• Expands the Golden State Teacher Grant Program under the administration of the Student Aid Commission to award grants to students who commit to work for 4 years at California preschool programs. Requires the Student Aid Commission to provide one-time grant funds of up to $10,000 to each enrolled student in a private postsecondary educational institution qualified for the program under these provisions.
• Revises the Teacher Residency Grant Program to require a candidate to agree to serve in any public school or publicly-funded preschool in California for at least 4 school years, increases the amount of the grants to up to $40,000 per residency candidate, requires LEAs receiving an award during and after the 2023–24 fiscal year to provide residency candidates with a minimum compensation package of no less than $20,000, and extends by 2 years the deadline for the CTC report to December 1, 2029. Allows residency candidates to complete their service requirements in eight years instead of five years and provide flexibility for candidates to fulfill their service requirement by allowing them to teach in schools outside of their sponsoring district.
• Allow teachers who were unable to finish their credential because they could not take the Teaching Performance Assessment during the COVID-19 Pandemic to meet this requirement through completion of a Commission-approved induction program, or through two years of satisfactory teacher evaluations.
• Requires the CTC to evaluate how transcript reviews can be conducted to assess basic skills and subject matter competence for teaching candidates to complete their credentialing requirements without the need to take state-mandated exams to prove competence. Establishes the Diverse Educators Pipeline Initiative and provides $10 million one-time Proposition 98 General Fund for grants to LEAs to provide culturally relevant support and mentorship for educators to become school administrators. Requires the CTC to award grants to LEAs of up to $30,000 per administrator candidate. Requires an administrator candidate for whom a grant is awarded to agree in writing to serve in a public school in California for a period of at least 2 school years.
• Requires the CTC to issue a comparable professional credential to any United States military service member or their spouse or domestic partner, or a surviving spouse or domestic partner of a service member who died while serving as an active duty member of the Armed Forces of the United States in the previous 12 months, who, among other things, possesses and provides proof of a valid, out-of-state, unexpired, professional-level credential. The bill would limit a comparable credential issued under these provisions to be valid only for the duration of those military orders, except as provided.
• Requires the CTC to exempt specified preliminary multiple subject credential candidates and preliminary single subject credential candidates from the requirement, and any accompanying regulations, to complete a teaching performance assessment, as provided.