May Revision: Governor Tweaks January Proposal
This update provides highlights of the Governor’s May Revision for 2019-20 which was released this morning. There was no discussion of Proposition 51 bond sales or apportionments in the Summary Document, indicating no change in the Governor’s proposal to sell and apportion $1.5 billion in bonds in the budget year. Additionally, the May Revision does not provide new funds for school energy efficiency projects.
The May Revision includes $101.8 billion for all K-12 education programs. K-14 Proposition 98 funding increased above the January Budget to $75.6 billion in 2017-18, $78.1 billion in 2018-19, and $81.1 billion in 2019-20.
The Governor’s January Budget proposed funding to reduce Local Education Agency (LEA) employer contributions to CalSTRS from 18.13 percent to 17.1 percent in 2019-20. The May Revision adds $150 million one-time non-Proposition 98 General Fund to further reduce that rate to 16.7 percent in 2019-20.
The May Revision proposes to allocate $696.2 million ongoing Proposition 98 General Fund for special education. This is $119.2 million more than was proposed in the January Budget—a 21 percent increase over the previous year.
The Governor provided support for the recruitment and retention of teachers and staff through three new proposals:
- $89 million one-time non-Proposition 98 General Fund for 4,500 loan assumptions of up to $20,000 for newly-credentialed teachers.
- $44.8 million one-time non-Proposition 98 General Fund for teacher and para-professional training in specified areas.
- $13.9 million ongoing federal funds for professional development for school administrators.
Computer Science Plan and Broadband Infrastructure
- The May Revision states the Administration’s intention of developing a comprehensive plan to achieve the goal of providing access to computer science education for all students, for consideration as part of next year’s budget. The State Board of Education adopted California’s first set of Computer Science Content Standards for K-12 schools in September 2018.
- The May Revision includes $15 million in one-time non-Proposition 98 General Fund for broadband infrastructure, to address persistent gaps in California’s schools, where some districts still need infrastructure and updates to meet the growing bandwidth needs of digital learning.
Full-Day Kindergarten Expansion and Early Childhood Education Master Plan
The May Revision reduces the Full-Day Kindergarten Facilities Grant Program funding from $750 million to $600 million in FY 2019-20, based on feedback provided during the budget review process. These funds are one-time, non-Proposition 98 General Fund (not bond dollars) and will be available to construct or retrofit facilities to expand access to full-day kindergarten facilities.
The May Revision proposes revisions to better target funds to expanding access to full-day kindergarten programs:
- Funding will be available over a three-year period, with eligibility limited during the first two years to schools that will convert from part-day to full-day kindergarten programs.
- Increases the state share of the facility grant from 50 percent to 75 percent for schools converting from part-day to full-day, to provide greater fiscal incentive and support.
The program will continue to prioritize available grants to school districts with high rates of students receiving free and reduced-price meals, and allow schools to qualify for financial hardship funding like they do in the School Facility Program.
Early Childhood Education Master Plan
The Governor’s Budget includes $10 million for a long-term strategic plan to provide a road map for a more well-aligned comprehensive learning and care system. The Master Plan will recommend next steps to achieve universal preschool and improve access to and quality of subsidized child care. It will also include strategies to address facility capacity, a trained workforce, and revenue options.
Wildfire-Related Cost Adjustments for Schools
Includes an increase of $2 million one-time Proposition 98 General Fund to reflect adjustments in the estimate for property tax backfill for basic aid school districts impacted by 2017 and 2018 wildfires. Additionally, an increase of $727,000 one-time Proposition 98 General Fund to reflect adjustments to the state’s student nutrition programs resulting from wildfire-related losses.
Significantly reduces the use of and exposures to chlorpyrifos (an insecticide used primarily on nut trees and fruit, vegetable and grain crops which presents serious risks to human health, especially in children and sensitive populations). The Department of Pesticide Regulation (DPR) will initiate a regulatory process to cancel registration of chlorpyrifos, which will ban the use of this pesticide in California. The May Revision includes a one-time increase of $5.7 million General Fund to assist in the transition to safer pesticide alternatives.
Safe Drinking Water
To address the one million Californians without access to safe drinking water, the Governor’s January Budget included an additional $168 million Proposition 68 to support capital water projects across the state, as well as $4.9 million General Fund to support initial steps toward implementation of the Safe and Affordable Drinking Water Program and statutory changes to establish ongoing sustainable funding to assist disadvantaged communities in paying for the costs of obtaining access to safe and affordable drinking water. The May Revision states that, “The Administration remains committed to working in collaboration with the Legislature and stakeholders on a comprehensive package that includes a sustainable and reliable source of funding to support safe and affordable drinking water for all Californians.
The Governor’s January Budget included $750 million in one-time grants to local governments to increase housing production. The May Revision adds school districts and county offices of education as jurisdictions eligible for the $250 million in planning and technical assistance support. School districts and county offices of education with surplus property can apply for these funds to develop teacher housing on these properties.
The May Revision augments funding for and expands access to the Governor’s January proposals for the increased production of low- and moderate-income housing. It refocuses $500 million (of the $750 million above) in local government planning assistance toward development of infrastructure (water, sewer, etc.) through the Infill Infrastructure Grant Program. Areas designated as infill may also qualify as federal Opportunity Zones and provide additional tax benefits to investors to spur development of economically-distressed communities.
~ CASH Staff