Education

Overview of Governor’s Special Education Proposals

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March 5, 2020 - Senate Budget and Fiscal Review Subcommittee No. 1 On Education Finance

Overview of Proposition 98 Budget and Early Education Proposals

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March 4, 2020 - Assembly Budget Subcommittee No. 2 on Education Finance

The 2020-21 Budget: Proposition 98 Education Analysis

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February 24, 2020 - In this report, we assess the Governor’s overall Proposition 98 budget and his specific proposals for K-12 education. Of the $3.7 billion in new Proposition 98 funding for 2020-21, the budget dedicates $2 billion for one-time initiatives and $1.7 billion for ongoing augmentations. Nearly all of the ongoing funding is to cover an estimated 2.29 percent cost-of-living adjustment for various K-14 programs. Total K-12 funding per student would grow to $12,619 in 2020-21, an increase of $499 (4.1 percent) over the revised 2019-20 level. Most of the one-time proposals in the Governor’s budget seek to address longstanding issues in K-12 education. Many of the proposals, however, seem unlikely to have much long-term effect on these issues. We also are concerned that many proposals are missing important details regarding how the funds would be spent. We recommend the Legislature reject most of these proposals, freeing up more than $1 billion in Proposition 98 funding. We think the Legislature should consider using the freed-up funds to provide fiscal relief to districts. Although the Legislature has various options for providing fiscal relief, we think making additional payments toward districts’ unfunded pension liabilities would offer the greatest fiscal benefit. Paying down these liabilities would improve the funding status of the pension systems and likely reduce district costs over time.

Correction 2/26/20: Corrected reference to the cost of the Governor’s education workforce proposals.

Narrowing California’s K-12 Student Achievement Gaps

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January 31, 2020 - In response to concerns over K‑12 student achievement gaps, the Legislature tasked our office with convening a work group on the topic and submitting a report. The required report needed to: (1) examine data on K‑12 student achievement gaps, (2) identify funding provided for disadvantaged and low‑performing students, (3) assess existing state efforts to serve these students, and (4) develop options for better supporting these students. This report responds to these requirements.

High School Career Technical Education

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January 29, 2020 - Presented to: Assembly Education Committee

The 2020-21 Budget: School District Budget Trends

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January 21, 2020 - In this report, we examine district budgets—both looking back at actual experiences to date and looking ahead at what experiences could be over the next few years. First, we provide background on districts and their budgets. We then discuss trends in districts’ main cost drivers. Next, we examine overall district fiscal health, with a particular focus on districts in fiscal distress. In the final section, we identify some ways the Legislature could help school districts address their cost pressures moving forward.

The 2020-21 Budget: Overview of the Governor's Budget

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January 13, 2020 - This report presents our office’s initial assessment of the Governor’s budget. We estimate the Governor had a $6 billion surplus to allocate to discretionary purposes in 2020-21. The Governor allocates most of the surplus toward one-time purposes, including maintaining a positive year-end balance in the state’s discretionary reserve. Under the administration’s estimates, total reserves would reach $20.5 billion at the end of 2020-21—this represents a $1.7 billion increase from the 2019-20 enacted level. California continues to enjoy a healthy fiscal situation. Despite its positive near-term picture, the budget’s multiyear outlook is subject to considerable uncertainty. In addition to describing the condition of the budget under the Governor’s proposal, this report discusses tools the Legislature can use to mitigate against these heightened risks.

January 20, 2020: Upon further review, one item included in the original version of Appendix Figure 3 on discretionary on health spending should not have been included (specfically, use of the Medi-Cal drug rebate fund to offset General Fund costs). Removing this item—which reduces General Fund spending—from the list of discretionary choices made in the Governor’s budget increases our calculation of the surplus to $6 billion. The document is updated to reflect these changes.

Update 1/24/20: Adjusted Judicial Branch items in Appendix Figure 1 to reflect ongoing spending.

California's Fiscal Outlook: CASBO Presentation

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November 21, 2019 - Presented to the California Association of School Business Officials on November 21, 2019.

The 2020-21 Budget: The Fiscal Outlook for Schools and Community Colleges

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November 20, 2019 - This report examines how the Proposition 98 minimum guarantee might change over the coming years. The report has five parts. First, we explain the formulas that determine the minimum guarantee. We then explain how our estimates of Proposition 98 funding in 2018‑19 and 2019‑20 differ from the estimates included in the June 2019 budget plan. Next, we estimate the 2020‑21 guarantee. Fourth, we explain how the minimum guarantee could change through 2023‑24 under two possible economic scenarios. Finally, we identify the amount of funding that would be available for new spending commitments in the upcoming year and describe some issues for the Legislature to consider as it prepares to allocate this funding.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.

Overview of Special Education in California

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November 6, 2019 - Recent legislation directed the Legislature and administration to work collaboratively to consider changes in how the state organizes, delivers, and funds special education, with the overarching intent to improve outcomes. With this report, we aim to inform these fiscal and policy conversations by providing an overview of special education in California.

Update 11/8/19: Adjustments made to per-student education costs

The 2019-20 Budget: California Spending Plan—Education

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October 17, 2019 - This post summarizes the state’s 2019-20 spending package for education programs. It is part of our Spending Plan series. The post describes changes in the Proposition 98 minimum guarantee and changes in overall Proposition 98 spending. The post also describes changes in spending for each education segment—from preschool through the universities. The post concludes with a section on crosscutting education initiatives.

Overview of Proposition 98 and K-12 Issues

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May 30, 2019 - Presented to: Budget Conference Committee

Overview of Early Education Issues

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May 30, 2019 - Presented to: Budget Conference Committee

Full-Day Kindergarten and Preschool Facility Grant Proposals

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May 30, 2019 - Presented to: Budget Conference Committee

The 2019-20 May Revision: K-12 Cal Grant Mandate

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May 28, 2019 - In this web post, we analyze the 2019-20 May Revision proposal to fund a new mandate relating to the Cal Grant program. We provide background on the mandate, discuss the Governor’s proposal, share our assessment, and provide an associated recommendation. This post fulfills a requirement for our office to analyze new mandates, as specified in Section 17562 of the Government Code.