This results in $17,502 total per pupil spending and $23,878 in all funds per pupil spending at May Revise, compared to $17,653 total per pupil spending and $23,519 all funds per pupil spending, from the Governor’s January Budget.
Due to continued declining enrollment, per-pupil funding remains relatively stable. Overall Average Daily Attendance increases by 0.74 percent after adjustments for TK increase, K-12 decline, and improved attendance.
With the May Revise, Prop 28 is rebenched for the 23-24 budget year from $938 million to $907 million. This amount will not change moving forward.
Prop 98 Rainy Day Fund
The May Revision proposes to withdraw a total of $8.4 billion from the Public School System Stabilization Act (PSSSA). For 2023-24: withdrawals of about $5.8 billion (roughly $1 billion mandatory and roughly $4.8 billion discretionary). For 2024-25 proposed withdrawals are $2.6 billion (all mandatory). This withdrawal will deplete the entire PSSSA fund.
The January budget proposed withdrawals of roughly $3 billion in 2023-24 and $2.7 billion in 2024-25, for a total revised account balance of more than $3.8 billion at the end of 2024-25.
Statutory Cost-of-Living Adjustment (COLA)
The May Revision proposes a COLA of 1.07 percent, compared to a COLA of 0.76 percent in the January budget.
The 1.07 percent COLA is also applied to categorical programs outside the LCFF, such as special education, school nutrition, LCFF equity multiplier, and others.
CASBO supported fully funding the statutory COLA of 0.76 percent in the January Budget proposal for the Local Control Funding Formula (LCFF), and categoricals such as special education and school nutrition.
Prop 98 Maneuver
The new amount for the Prop 98 maneuver, to lower the 2022-23 Minimum Guarantee and “backfill” the corresponding gap with non-Proposition 98 General Fund has been increased to $8.8 billion compared to the original amount of $8 billion proposed in February. The maneuver has been widely debated within the education community due to its impact on future Prop 98 funding, and the administration has indicated that they look forward to continued conversations about it with the Legislature and interest groups.
School Facilities
Compared to other areas of the budget, the most significant cuts in the May Revise and the Legislature’s Early Action Plan are found in school facilities funding. The administration indicated they remain open to ongoing negotiations with the Legislature to place a bond on the November ballot that could include these items.
- California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program
Reducing a planned 2025-26 investment of $550 million that would have supported the California Preschool, Transitional Kindergarten, and Full-Day Kindergarten Program. Such an investment could be considered for inclusion in education facilities bond proposals being contemplated by the Legislature.
- School Facilities Aid Program
Eliminating the remaining $375 million one-time in planned support for the School Facilities Aid Program. The Early Action package previously reduced a planned investment of $875 million one‑time General Fund by $500 million one-time General Fund.
Universal Meals
The May Revision proposes to fund the Universal School Meals Program at $298.3 million. This new figure is a drastic increase from the original funding of $122.2 million in the January budget.
Roughly $179.4 million are ongoing with an additional $19.54 million due to the cost of living adjustment. This results in about $198.95 million in ongoing funding. This amount is added to the original amount of $118.9 million which was proposed for 2023-24 year.
Transportation
The May Revision also increases the Electric Vehicle (EV), funding by $395 million, compared to the January budget, leading to a total of $895 million in EV funding, compared to $500 million in the January budget. Out of these new funds, $140 million are from Prop 98, and $254 million reallocated unspent preschool funds.
Other K-12 Proposals
| Learning Recovery Emergency Block Grant (LREBG)
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Developing needs assessment for using unspent LREBG funds delayed to the 2025-26 school year.
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| Arts Music Instructional Materials Discretionary Block Grant
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LEAs will have to report final expenditures by September 30, 2026, and the State to recapture unspent funds. |
| TK 1:10 Staffing Ratios |
No proposal to increase funding to support 1:10 TK staffing ratio. |
| Deferrals |
No deferrals in the current May Revision proposal, however, this may change as the legislature begins to negotiate its budget version.
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| Learning Aligned Employment Program
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Reducing $485 million one-time, which reflects the balance of unspent one-time Learning-Aligned Employment Program resources.
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| Golden State Teacher Grant Program
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Reducing $60.2 million one-time support for the Golden State Teacher Grant Program. Combined with a technical adjustment, $50 million one-time support for this program would remain.
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| Middle-Class Scholarship Program
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Reducing $510 million ongoing support for the Middle-Class Scholarship program. Combined with a technical adjustment, $100 million in ongoing support for this program would remain.
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| Preschool Inclusivity
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Eliminating the planned General Fund investments of $47.9 million in 2025-26 and $97.9 million ongoing starting in 2026-27 that would have supported California State Preschool Program adjustment factor costs for State Preschool to serve at least 10 percent of students with disabilities by 2026-27. Providers would continue to be required to serve at least 5 percent of students with disabilities.
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What’s Next
Legislative Budget Hearings: The legislature will begin hearings in the budget committees and subcommittees to discuss the May Revision today, May 16. The Legislature has until June 15th to pass a balanced State Budget.
Materials
K-12 Education details in the budget
Department of Finance’s letter on proposed adjustments
K-12 Omnibus Trailer Bill Language
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