View the full 2020-21 budget summary
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Gov. Newsom’s 2020-21 budget proposal provides additional money for special education, teacher preparation, early childhood

Gov. Gavin Newsom’s second budget proposal — a $222.2 billion spending package released today that also solidifies $21 billion in total statewide reserves — makes bold investments in addressing key statewide issues such as climate change, health care costs and the homelessness crisis. While not fundamentally addressing California’s education funding crisis, the budget adds $3.4 billion in new revenue to public schools and substantially focuses on special education, teacher preparation and early education.

Overall, the Governor proposes higher-than-expected investments in teacher preparation and recruitment ($900 million total) and begins the process of revamping California’s model of special education base funding with a formula that uses a three-year rolling average daily attendance. Overall, the budget calls for another $900 million in new funding for special education. While it was expected that additional non-Proposition 98 money would be added to continue to pay down school employer pension liabilities, no additional funding is added to either system beyond the more than $3 billion in non-Proposition 98 money that was provided in 2019-20.

Click here to view a statement on the Governor's budget from CSBA President Xilonin Cruz-Gonzalez.
View the full 2020-21 budget summary
(the K-12 education section begins on page 73 of the PDF document; Early Childhood is detailed on page 67 of the PDF)

Click here for information on the 2020 Budget Perspectives Workshops on the Governor’s budget proposal. The free statewide series begins January 21 and is presented in partnership with CSBA, Capitol Advisors Group, ACSA, SSDA and others.
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 2020-21 budget proposal:

Proposition 98

$84 billion
is the proposed Proposition 98 guarantee for K-14 education, an increase of $2.9 billion over the enacted 2019-20 guarantee of $81.1 billion.
  • $819 million included for settle-up payments from prior fiscal years.
  • $12,600 per-pupil funding from Proposition 98.
  • Budget years 2018-19 through 2020-21 are all projected to be Proposition 98 Test 1 years. 
Public School System Stabilization Account

For the second year in a row, a deposit is proposed to the Public School System Stabilization Account (also known as the Proposition 98 rainy day fund).
  • $110 million proposed to be deposited, which would bring the total balance to $487 million.
  • The new balance would not be enough to activate the statutory cap on school district reserves.
  • $1.2 billion in LCFF investment reflects a cost-of-living adjustment (COLA) of 2.29 percent.
    • 2020-21 COLA of 2.29 percent is markedly lower than the enacted 2019-20 COLA of 3.26 percent but higher than the statutory 1.79 percent COLA forecast by the Legislative Analyst in November.
Teacher preparation and recruitment

Gov. Newsom spent a considerable amount of time in his press conference discussing nearly $900 million in investments to address the state’s teacher shortage — particularly, to mitigate its effects on higher-need student populations — and to bolster teacher preparation:
  • $350 million one-time Proposition 98 General Fund for the Educator Workforce Investment Grants
    • Prioritizes special education (including inclusive practices, universal design for learning and dyslexia identification), multi-tiered systems of support and mental health interventions; supporting English learners; social-emotional learning and restorative practices; affirmative supports for LGBTQ and other marginalized students; and STEM.
  • $193 million one-time Proposition 98 General Fund for the Workforce Development Grant Program.
  • $175 million one-time Proposition 98 General Fund to expand the Teacher Residency Program.
  • $100 million one-time Proposition 98 General Fund for the California Teacher Credential Award Program.
  • $64.1 million one-time Proposition 98 General Fund to expand the California Classified School Employees Credentialing Program.
  • The budget also proposes suspending accreditation fees for institutions of higher education and LEAs that administer a teacher preparation or induction program.
Special education

Calling special education in California a “crisis” and a “real shame,” Gov. Newsom proposes $900 million in new funding for the first phase of what is described as a multi-year effort to revamp special education funding:
  • New base funding formula that uses a three-year rolling average of ADA (but still allocated to Special Education Local Plan Areas (SELPAs))
  • 15 percent increase in the Proposition 98 General Fund contribution to the base formula funding over the prior budget year.
    • Per the budget summary: “Most local educational agencies will see an increase in base funding; however, the approximately 100 local educational agencies with base rates higher than the proposed base rate will be held harmless.”
  • $250 million in ongoing Proposition 98 General Fund money proposed, based on the number of children ages 3 to 5 years with exceptional needs.
    • Funding allocated on a one-time basis to school districts based on the number of preschool-age children with disabilities served. 
    • All other Assembly Bill 602 special education funding categories remain unchanged.
  • Budget proposes additional funding for a review of SELPA governance and accountability, special education workgroups and dyslexia research and training.
The budget expresses the administration’s intent to among other things, finalize a new special education funding formula in future budget years, but no further details are provided.

Opportunity Grants
  • $300 million in one-time Proposition 98 General Fund money proposed to establish Opportunity Grants for the state’s lowest-performing schools and school districts, and to expand the California Collaborative for Educational Excellence and its role in the Statewide System of Support.
School Facilities/ Proposition 51
  • Pursuant to Proposition 51 from 2016, $1.5 billion in Proposition 51 school facilities funding will be released in 2020-21, the same amount released in 2019-20.
    • All new construction and modernization funds available from the 2016 school bond have been exhausted based on approved projects on the Office of Public School Construction workload list.
  • The Public Preschool, K-12, and College Health and Safety Bond Act of 2020 (Proposition 13) will appear on the March 3 ballot, which, if passed by voters, would provide $15 billion for facilities at the state’s preschools, K-12 schools, community colleges and four-year colleges and universities
    • Download the sample resolution supporting Proposition 13: PDF | Word
Early Childhood

While proposing the creation of a new state Department of Early Childhood Development in 2021, the Governor’s budget offers the following on early education and childcare:
  • $31.9 million increase and $127 million ongoing non-Proposition 98 General Fund for an additional 10,000 non-LEA state preschool slots.
  • $75 million Proposition 98 General Fund for preschool facilities.
  • $53.8 million non-Proposition 98 General Fund for CalWORKs Stages 2 and 3 Child Care
School nutrition
  • $60 million Proposition 98 General Fund to backfill Supplemental Nutrition Assistance Program (SNAP) funding
County offices of education
  • $5.7 million Proposition 98 General Fund increase (reflects COLA and ADA changes)

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 2020-21 budget negotiations leading up to the May Revision. Please
email Dennis Meyers with any questions about the proposal.