Signed 2017-18 budget: $74.5 billion Proposition 98 guarantee, LCFF at 97 percent
Today, Gov. Jerry Brown signed the 2017-18 state budget and, for the second year in a row, Gov. Brown did not exercise veto authority over any items in the budget deal approved by the Legislature. The budget waives statutory Proposition 98 payments, known as “Test 3B” over the next three budget years, while allocating $877 million in one-time funding that will be available in 2017-18.
View the Dept. of Finance budget summary here.
K-12 education budget
Proposition 98: Final enacted Proposition 98 guarantees are:
2017-18: $74.5 billion (up $2.6 billion from 2016-17 enacted budget)
2016-17: $71.4 billion (adjusted down $500 million from the 2016-17 enacted budget)
2015-16: $69.1 billion
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.
CSBA and the Education Coalition will be engaged in meetings with legislators on this issue, in the effort to reverse the decision to waive Test 3B payments.
LCFF: The total LCFF investment of $1.4 billion brings the formula to approximately 97 percent of full implementation.
One-time funds: $877 million in one-time funds will be available in 2017-18; the funds will be made available on or before June 30 of 2018, allowing LEAs to budget for use of the funds in the 2017-18 budget year. The proposal from the May Revision to sequester the funds until May of 2019 was not included in the final budget act.
Public Employee Orientation: As part of the budget deal, the governor has signed AB 119, which requires that public employers provide local union representatives with access to newly hired employees.
Teacher Workforce: The budget invests $41.3 million in one-time funds for a package of programs to address California’s teacher shortage ($30 million one-time Proposition 98 General Fund and $11.3 million one‑time federal Title II funds).
County Offices of Education: An allocation of $7 million is also provided to county offices of education for their role in supporting LCAPs