Governor’s Final Budget

On Friday, June 27th, Governor Gavin Newsom signed the state budget bill, the budget bill junior, and the education omnibus trailer bill.

CASBO Budget Priorities

Issue CASBO’s Advocacy Position Final Budget Language
Proposition 98 and the Local Control Funding Formula (LCFF) Supported:

  • Full funding of the cost-of-living adjustment (COLA)
  • Appropriation of calculated level of the Proposition 98 guarantee in 2024-25
  • Allocation of Proposition 98 funds though LCFF and not creating new programs
  • Fully funds the COLA at 2.3%
  • Only appropriates $118 billion of the $119.9 billion Proposition 98 guarantee in 2024-25
  • Funds some new programs such as the Secondary School Redesign Pilot Program and Statewide Literacy and Mathematics Networks
Student Support and Professional Development Discretionary Block Grant

 

Supported

  • $1.7 billion proposed funding level
  • Allocation of funds based on ADA
  • Full discretion in use of funds
  • Allocates $1.7 billion, based on ADA
  • Requires one final expenditure report, due September 30, 2029
  • Final language includes language that requires block grant funds to satisfy outstanding mandate claims
Universal Transitional Kindergarten (UTK)

 

Supported:

  • Proposal for $2.1 billion in on-going funds for the full implementation of UTK
  • Proposal for additional $1.2 billion in on-going funds to support the 10:1 student to teacher ratio
  • Includes both the $2.1 and $1.2 billion
Expanded Learning Opportunities Program (ELOP)

 

Supported:

  • Move to full implementation of ELOP
  • Stable funding for Tier 2 LEAs
  • Additional time for new Tier 1 LEAs in 2025-26 to meet program requirements

 

  • Fully implements ELOP by lowering the Tier 1 threshold to 55% unduplicated pupil percentage
  • Increases the minimum grant award to $100,000 from $50,000
  • Audits new Tier 1 LEAs as Tier 2 in the 2025-26 school year

 

Other Budget Updates

Changes to the Surplus Lands Act Exemptions

The Housing Budget Trailer Bill included a last-minute provision to remove the exemptions under the Surplus Lands Act for district advisory committees (Education Code Section 17388) and exchange of property (Education Code Section 17536).  Along with the California School Boards Association and Los Angeles Unified School District, CASBO opposed this proposal. While our advocacy was too late to reverse the provision, we are working over the summer to fix this change.

Penalties for failure to adopt the Local Control and Accountability Plan (LCAP)

The education omnibus trailer bill includes new language related to explicit fiscal penalties for failing to adopt an LCAP.  Specifically, any local educational agency that fails to adopt their LCAP, annual update to the LCAP, or budget will not receive their apportionment, with an exception for emergency events. These changes stem from the need for clarity after the first instance of an LEA failiing to adopt their LCAP by July 1 in the summer of 2024.

Learning Recovery Emergency Block Grant

The Budget allocates $378,650,000 from the Learning Recovery Emergency Block Grant in the 2025-26 school year and contains intent language for the same amount to be allocated in the 2026-27 and 2027-28 school years.  Additional information on the use of these funds and reporting requirements can be found here.

New Standardized Account Code Structure Requirements

Section 16 of the education omnibus trailer bill requires the separate accounting of expenditures related to payments of legal settlements, judgments, or special assessments by a joint pooling arrangement, stemming from AB 218 and AB 452.  This will provide the state with information on the fiscal impact of AB 218 and AB 452 on school districts.

Second House Policy Committee Deadline

Friday, July 18th marked the deadline for policy committees to hear bills in the second house.

CASBO Position Bills 

List of current CASBO Position Bills

Support

The bills below are supported by CASBO and are still moving through the legislative process.

AB 1224 (Valencia) Teacher credentialing: substitute teachers: days of service.

This bill would extend the period in which a substitute teacher can serve in a single classroom for up to 60 days until July 1st, 2029.

CASBO Position: Support and Co-Sponsor

Location: Senate Appropriations Committee

 

AB 361 (Schultz) Best value procurement: school districts. 

This bill establishes a pilot program allowing the use of best value procurement method for public works projects over $1 million through December 31, 2030, while granting Los Angeles Unified School District permanent status.

CASBO Position: Support

Location: Senate Floor

 

AB 503 (Gonzalez, M.) School facilities: Civic Center Act: direct costs. 

This bill would permanently restore provisions of the Civic Center Act, allowing school districts to continue recovering direct costs for the use of non-classroom school facilities and grounds by community organizations.

CASBO Position: Support

Location: Senate Floor

 

AB 606 (Quirk-Silva) Certificated employees: professional services credential: out-of-state applicants. 

This bill requires the Commission on Teacher Credentialing (CTC) to issue a preliminary professional services credential with a specialization in pupil personnel services to an out-of-state eligible applicant.

CASBO Position: Support

Location: Senate Appropriations Committee- Suspense File

 

AB 699 (Stefani) Elections: local tax measures. 

This bill would allow a statement about the tax rate, duration of the tax, and amount of revenue raised to appear either on the ballot or in the voter information guide for local tax and bond measures.

CASBO Position: Support

Location: Senate Appropriations Committee

 

AB 962 (Hoover) Pupil safety: comprehensive school safety plans: use of smartphones.

This bill clarifies prohibition on smartphone use of a student in the case of emergency or in response to a perceived threat of danger, if that circumstance is explicitly noted in a comprehensive school safety plan.

CASBO Position: Support

Location: Senate Floor

 

AB 998 (Hadwick) Household hazardous waste: vape pens.  

This bill states that vape pens confiscated by schools are treated as household hazardous waste, maintaining this status when properly disposed of at designated collection facilities.

CASBO Position: Support

Location: Senate Appropriations Committee

 

AB 1111 (Soria) Pupil transportation: schoolbuses: zero-emission vehicles: extensions: scrapping.  

This bill would exclude a school bus from the scrapping requirement if it is 25 years old or newer at the time of delivery of a replacement vehicle and its ownership be transferred to a frontier LEA or a small school district.

CASBO Position: Support

Location: Senate Appropriations Committee

Note: The bill was amended from its original form through policy committees*

 

SB 374 (Archuleta) Local educational agencies: annual reporting requirements: IDEA Addendum. 

This bill deletes the IDEA Addendum to the LCAP, which is now duplicative of the recent changes to the LCAP.

CASBO Position: Support

Location: Assembly Appropriations Committee

 

SB 848 (Perez) Pupil safety: school employee misconduct: child abuse prevention. 

This bill supports the efforts of local educational agencies to foster safe learning environments and would provide additional tools for the prevention of childhood sexual assault and molestation.

CASBO Position: Support

Location: Assembly Appropriations Committee

 

Oppose

The bills below are opposed by CASBO and are still moving through the legislative process.

AB 340 (Ahrens) Employer-employee relations: confidential communications.

This bill would prohibit an employer from questioning an employee or employee representative regarding confidential communications between the employee and employee representative.

CASBO Position: Oppose

Location: Senate Appropriations Committee

 

AB 374 (Nguyen) K–14 classified employees: payment of wages: itemized statements.  

This bill would extend existing Labor Code provisions to public school districts and community colleges classified employees, requiring employers to provide employees with accurate itemized wage statements at the time of each payment.

CASBO Position: Oppose

Location: Senate Appropriations Committee -Suspense File

 

 AB 477 (Muratsuchi) Fair Pay for Educators Act: local control funding formula: base grants: funding targets. 

This bill establishes new Local Control Funding Formula (LCFF) base grant targets for the 2036–37 fiscal year and declares the Legislature’s intent to fully fund these targets over time to increase schoolsite staff salaries.

CASBO Position: Oppose

Location: Senate Appropriations Committee – Suspense File

 

AB 942 (Calderon) Electricity: climate credits. 

This bill would establish that residential customers can no longer receive a climate credit if they are not enrolled in the California Alternate Rates for Energy or Family Electric Rate Assistance program and their total electricity bills for the previous year were less than $300.

CASBO Position: Neutral

Location: Senate Appropriations Committee

Note: The bill has been amended drastically from its original form resulting in changing our position from oppose to neutral.

 

AB 1109 (Kalra) Evidentiary privileges: union agent-represented worker privilege. 

This bill would establish that communication between a union agent and a represented employee has the same protection as attorney-client privilege.

CASBO Position: Oppose

Location: Senate Appropriations Committee – Suspense File

 

AB 1331 (Elhawary) Workplace surveillance.

This bill would limit the use of workplace surveillance by employers, and any violations would be a civil penalty of $500 per employee for each violation.

CASBO Position: Oppose

Location: Senate Appropriations Committee

 

SB 494 (Cortese) Classified school and community college employees: disciplinary hearings: appeals: contracted administrative law judges

This bill would require an administrative law judge (ALJ) to hear disciplinary appeals of classified personnel at non-merit K-12 school districts or community colleges. This bill would also require the district to pay for the ALJ, who will be jointly selected by the district, the employee, or the employee’s representative.

CASBO Position: Oppose

Location: Assembly Appropriations Committee

 

SB 743 (Cortese) Education finance: Education Equalization Act: Equalization Reserve Account.  

This bill would establish the Equalization Reserve Account in the General Fund. And require interest earned on funds in the account to be available to increase per-pupil funding in non-basic aid school districts. The bill would require the Controller, in any fiscal year in which there is an increase over the preceding fiscal year in the minimum amount of revenues the state is required to appropriate for the support of school districts and community college districts, to transfer from the General Fund to the Equalization Reserve Account an amount equal to the total amount transferred from the General Fund to the Public School System Stabilization Account in that fiscal year, as provided.

CASBO Position: Oppose

Location: Assembly Appropriations Committee

 

Bills that stalled 

AB 65 (Aguiar-Curry) School and community college employees: paid disability and parental leave

This bill would require a public school employer to provide up to 14 weeks of paid leave of absence for certificated and classified employees who are out for pregnancy-related conditions.

CASBO Position: Oppose 

Location: Senate Education Committee

Status: Two-Year bill

 

AB-917 (Avila-Farias) County offices of education: school districts: average daily attendance of less than 250 pupils: permanent status. 

This bill would give tenure to teachers in small LEAs and regional occupational centers and programs (ROCP) after two years, undoing a long-standing agreement that teachers in these settings are not eligible for tenure to maintain flexibility for these LEAs and programs.

CASBO Position: Oppose 

Location: Senate Education Committee

Status: Dead

 

AB 948 (Flora) School facilities: task-order procurement contracting.

This bill would authorize a school district with an average daily attendance (ADA) of 2,500 or less or a county superintendent of schools to award multiple task-order procurement contracts for repair and renovation of buildings and grounds, for a project not exceeding $3 million, through a single request for bids.

CASBO Position: Support

Location: Senate Education Committee

Status: Two-year bill

 

What’s Next

  • The Legislature is on Summer Recess until August 18th.
  • Bills with fiscal impacts will have to make it out of the Appropriations committees by August 29th and the legislature will adjourn for the year on September 12th.

Call-to-Action: Release Withheld FY 2025 Education Title Funds 

As you may know, the federal government is withholding over $800M from California’s schools. These programs underpin educational access and success for millions of students. The sudden impoundment of these funds—without a clear legal explanation—threatens both educational opportunities and operational stability across our state. California school districts rely on these federal programs to support critical services for some of the most vulnerable student populations.

Urge your representatives to contact the U.S. Department of Education and the Office of Management and Budget to request the immediate release of these desperately needed funds. 

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