One-time funding increased, Proposition 98 supplemental payments waived

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One-time funding increased, Proposition 98 supplemental payments waived

2017-18 budget passed by Legislature and sent to Gov. Brown

“While CSBA is certainly appreciative of the continued investment in the Local Control Funding Formula and allocation of additional one-time funds, this budget continues to look at the formula and not the need. Our schools are striving to close opportunity and achievement gaps and improve outcomes so that all students are prepared for success in college, career and civic life. Meanwhile, California remains well below other states in per-pupil funding at a time when school districts and county boards face enormous increases in pension contributions, rising transportation costs and other financial pressures.”
-Susan Henry, President, California School Boards Association


The Senate and Assembly have approved the $125 billion 2017-18 budget, sending the budget to Governor Brown, who now has 12 working days to sign it. The budget makes investments in LCFF and adds significant one-time money, but also waives statutory Proposition 98 payments over the next three years. A bill on public employee orientation also comes with the budget package.

Key Elements of 2017-18 Budget

LCFF: The investment in LCFF brings the formula to approximately 97 percent of full implementation, as proposed by the governor in the May Revision.

One-time Funds: One-time funding comes in at $876 million, or about $148 per student. These funds will be made available in May of 2018, as the proposal last month to sequester the funds until May of 2019 was not included in the final budget act.

Proposition 98 Test 3B Payments: The budget waives statutory Proposition 98 payments, known as “Test 3B” payments, over the next three budget years (2018-19 through 2020-21). While 2017-18 is a Proposition 98 Test 2 year, each of the next three budget years are projected to be Test 3 years, which could result in money being owed to schools in each of those years. Based on current projections, waiving Test 3B essentially waives those payments, potentially totaling more than $1 billion. Read more about Test 3B here.

Note: A proposal from the initial January budget to defer more than $850 million in Proposition 98 payments is not included in this approved budget.

Cost-of-Living Adjustment: A COLA of 1.56 percent is included for specified categorical programs (Special Education, Child Nutrition, Foster Youth programs, American Indian Early Childhood Education and American Indian Education Centers).

Public Employee Orientation: Budget trailer bill SB 104, also passed today along with the budget package, revives a multi-year effort by labor organizations to require that public employers provide local union representatives with access to newly hired employees. Read more here.

District of Choice: The budget act extends the District of Choice program for five years.

CSBA will report additional details on the enacted 2017-18 budget when it is signed by the governor. Read more about the 2017-18 budget here and here.

Questions? Contact the CSBA Governmental Relations Department.

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