View the full 2019-20 budget summary
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Gov. Newsom’s budget proposal adds money for pensions, increases COLA

Gov. Gavin Newsom’s first state budget proposal was unveiled today, bringing with it expected investments in early education and in health care as the state finds itself with a hefty budget surplus of more than $21 billion, as reported by the Associated Press.

Despite modest growth to the Proposition 98 guarantee, the budget proposal is overall encouraging and demonstrates a commitment from the new Governor to uphold the Local Control Funding Formula with a 3.46 percent COLA and to addresses the issue of CalSTRS contribution increases with a total investment of $3 billion. Overall, 86.4 percent of proposed new spending is one-time money. 

CSBA’s conversations with Gov. Newsom and the advocacy efforts of individual school and county board members on the issue of pensions did not go unnoticed in this budget – during his press conference, the Governor specifically referenced input he has received from governing board members statewide regarding the need for this investment. 

Click here to view a statement on the Governor's Budget from CSBA President Dr. Emma Turner.
View the full 2019-20 budget summary
(the K-12 education section begins on page 37 of the PDF document)
Tune in to CSBA's Facebook Page for a Facebook Live session offering further insight into today's budget proposal.
Key K-12 aspects of 2019-20 budget proposal:

Proposition 98
  • $80.7 billion proposed 2019-20 Proposition 98 guarantee.
  • $12,003 proposed average per-pupil spending from Proposition 98.
    • 2019-20: Proposition 98 Test 1 year
    • 2018-19: Proposition 98 Test 3 year
    • 2017-18: Proposition 98 Test 1 year
Pensions (CalSTRS)
  • $3 billion total one-time non-Proposition 98 General Fund payment proposed for CalSTRS.
  • $700 million of the $3 billion would be provided to buy down the employer contribution rates in 2019-20 and 2020-21.
    • Per the budget summary: “Based on current assumptions, employer contributions would decrease from 18.13 percent to 17.1 percent in 2019-20 and from 19.1 percent to 18.1 percent in 2020-21. The remaining $2.3 billion would be paid toward the employers’ long-term unfunded liability.”
    • The budget also proposes a $3 billion supplemental pension payment to CalPERS -the immediate impact of this proposed payment for public schools is not yet known.
  • $2 billion investment reflects a cost-of-living-adjustment (COLA) of 3.46 percent, outpacing the 3.1 percent projected by the Legislative Analyst in November.
Special education
  • $576 million in Proposition 98 funding ($186 million is one-time) to “support expanded special education services and school readiness supports at local educational agencies with high percentages of both students with disabilities and unduplicated students who are low-income, youth in foster care, and English language learners.”
Full-day kindergarten
  • $750 million in one-time non-Proposition 98 funds for full-day kindergarten programs, building on a $100 million investment from the prior year’s budget.
School Facilities/Proposition 51
  • $1.5 billion in Proposition 51 bond funds are proposed to be released to address school facilities construction and modernization projects currently on the backlog.
    • The budget also proposes $1.2 million in ongoing Proposition 51 money, from which 10 new positions would be created at the Office of Public School Construction to process facilities funding applications.
Charter school transparency
  • While specific language is not yet available, Gov. Newsom expresses his intent in the budget to “implement statewide policies that hold all school districts, charter schools, and county offices of education accountable for operational transparency and community engagement.”
County Offices of Education
  • $9 million increase in Proposition 98 General Fund to reflect a 3.46-percent cost-of-living adjustment and average daily attendance changes applicable to LCFF.
Next steps
Budget negotiations will be ongoing in the Legislature throughout the spring, leading up to the May budget revision, which will be released on or before May 15. The Legislature will then have until June 15 to send the final agreed upon budget to Gov. Newsom, who will have until July 1 to sign it. CSBA will provide additional updates on the initial budget proposal and on 2019-20 budget negotiations leading up to the May Revision. Please
email Dennis Meyers with any questions about the proposal.