LCFF investment up, no added Proposition 51 bond authority
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2018-19 budget deal reached; LCFF investment up, no added Proposition 51 bond authority

Following the announcement Friday morning that Governor Jerry Brown, Senate President pro Tem Toni Atkins and Assembly Speaker Anthony Rendon reached an agreement, the Budget Conference Committee convened late Friday evening to finalize its work on the 2018-19 state budget.

Click here for information on 2018-19 statewide Budget Perspectives Workshops.

Key actions by 2018-19 Budget Conference Committee:

LCFF: $676 million is added above the 2.71% COLA, putting the 2018-19 increase at $3.67 billion (up from $3.1 billion in January and $3.2 billion in May). This increase is equal to approximately half of the additional money the Senate Budget Subcommittee on Education proposed earlier this year. The 2018-19 budget does not include language that would increase the LCFF base grant targets, as is the intent of CSBA cosponsored legislation, Assembly Bill 2808 (Muratsuchi, D-Torrance), which is pending hearing in the Senate later this month.

One-time funding: $1 billion (appx. $168 per ADA) reflects a compromise between the Legislature and the Governor, who proposed $2.1 billion in January. The compromise reflects additional money being allocated to ongoing LCFF support and a handful of other one-time allocations. Language was adopted requiring offsets for local outstanding mandate claims and for medical billing repayments.

Wildfires: The budget will include language to provide a third year of hold harmless for school districts impacted by the 2017 wildfires – this is the provision CSBA has been seeking with our sponsored bill,
Assembly Bill 2228 (Wood, D-Healdsburg), to provide relief for impacted districts.

Proposition 51 Bond Sales: $640 million in bond authority for school facilities, as proposed by the Governor in January; a Conference Committee proposal to increase that amount to $1.5 billion was not adopted.

Proposition 98 Certification: Language on a
new annual certification process was adopted (including the continuous appropriation of LCFF with a COLA, and rebenching of the guarantee to accommodate 2015-16 action to include preschool wraparound services). The timeline to allow for Legislative review is adjusted and will allow the Legislature to adopt an alternative plan on allocating the annual settle up.

AB 2635: $300 million in one-time money is allocated for the lowest-performing student subgroups.This is a compromise from original Assembly action to include $360 million in ongoing money to fund
AB 2635 (Weber, D-San Diego), supported by CSBA. The $300 million will be allocated through a competitive grant program.

AB 195: The Conference Committee did not take direct action on the proposed two-year delay of the provisions of
AB 195 (Obernolte, Statutes of 2017), a law pertaining to local bonds requiring certain information to be printed on ballot labels which is causing confusion among voters and is hindering the chances for local bonds to pass. A two-year delay of the AB 195 provisions is now expected to be introduced as a standalone trailer bill, rather than included as part of the larger budget trailer bill language (see Next Steps below).

Career Technical Education: $150 million for a California Dept. of Education administered CTE program
(AB 1743, O’Donnell, D-Long Beach, supported by CSBA) and $150 million for the Governor’s K-12 CTE program administered through the Community College Strong Workforce Program is the result of a legislative compromise.

Classified Employees: $50 million for classified employee professional development and $50 million for a new program to provide matching money for classified employees who set aside a portion of their checks to cover the 1-3 month period they aren’t working if their positions are 9, 10 or 11 month positions
(Senate Bill 1177, Portantino, D-La Canada-Flintridge, opposed by CSBA).

Willful defiance: The Conference Committee approved the Governor’s proposal (supported by CSBA) to delete the sunset date on provisions that prohibit students in grades K-3 from being suspended or expelled for willful defiance
(SB 607, Skinner, D-Berkeley).

Special Education Equalization: Not funded.

Next steps:
Budget bill and trailer bill language reflecting the conference committee actions is being introduced today (as of this writing, the trailer bill pertaining to education is not yet in print), and by law must be in print for 72 hours before the Senate and Assembly can approve the legislation. Both houses have until Friday, June 15 to approve the budget and send it to Gov. Brown for his signature; penalties would be levied against the Legislature if the statutory deadline is missed. CSBA will provide additional updates on the adopted budget when it is finalized.