The Budget Act of 2024 has been an unusual and dramatic development process, marked by intense debates. However, conversations between CASBO, the Legislature, and the administration have been invaluable. After each budget announcement, our Legislative Committee gathered to discuss and prioritize key issues. We deeply appreciate the time and trust that both the Legislature and the administration place in the voices from the field. Their ongoing engagement and responsiveness are crucial in addressing the needs and priorities of our members.

Over the weekend, the legislature shared the final budget of 2024. Below are the wins we achieved in the budget this year through advocacy and continuous dialogue.

 

Priority CASBO’s Position Status
COLA Fully Funding the statutory COLA . The Legislature and the administration have fully funded the COLA to 1.07%.
LREBG Delay in the needs assessment regarding the use and expenditure of funds for the Learning Recovery and Emergency Block Grant, now scheduled to commence in 2025-26, instead of July 1, 2024. The assessment has been delayed for the period of July 1, 2025 to July 1, 2028.
Attendance Recovery Program

 

 

 Delay in the implementation of the attendance recovery program until July 1, 2025.

 

 The implementation has been delayed to July 1, 2025.
Emergency Closure

 

 

 We opposed LEAs requirement to certify a plan for offering instruction within 5 days after June 30, 2025, instead of current 10 days requirement.

 

While collaborating with other education organizations, CASBO urged the administration to: require LEAs to identify strategies to engage and offer instruction to any pupil impacted by an unforeseen disruption in instruction, including but not limited to emergency events to the greatest extent.

 

 

 The budget proposes LEAs to have a plan to provide access to in-person instruction or remote instruction, as soon as practicable, but no later than 10 instructional days following the emergency.

LEAs will need to have a safety plan in place. The J-13 will not be contingent on funding.
Zero-Emission School Buses

 

 We urged reconsideration of $895 million, with an opportunity to reevaluate in future years, once technology and infrastructure have improved.

 

 The funding has been reduced to $500 million instead of $895 million.

 

The language also proposes that if an LEA is able to provide sufficient information to demonstrate significant barriers to the adoption of zero-emission technology at the time of application, the State Air Resources Board and the Energy Commission may fund schoolbuses powered by renewable fuel to the extent and in the time period that these barriers apply to the LEA.

 
Universal School Meals

 

 

 CASBO has been advocating and supporting funding for universal meals. The May Revision proposed the funding to be $298.3 million. This new figure is a drastic increase from the original funding of $122.2 million in the January budget.

 

The final budget underscores Governor Gavin Newsom’s commitment to education. The Budget Act of 2024 represents a critical financial roadmap for California, achieving a balanced budget while addressing a significant $45 billion shortfall. Below are the highlights of the Budget Act of 2024.

 

Balanced Budget: The budget not only balances through 2024-25 but also extends this balance into 2025-26. This stability is achieved through a combination of program reductions, increased revenues, and strategic use of reserves.

 

Budget Solutions: To address the substantial budget shortfall, the Budget Act of 2024 incorporates a comprehensive set of budget solutions. This balanced approach ensures fiscal responsibility while maintaining essential services and programs. The solutions are a mix of program reductions, increased revenues, and strategic financial maneuvers, including the use of reserves and fund shifts.

  • Program Reductions: $16 billion
  • Increased Revenues: $13.6 billion
  • Use of Reserves: $6 billion
  • Fund Shifts: $6 billion
  • Delays and Pauses: $3.1 billion
  • Deferrals: $2.1billion

Education Component

Proposition 98 Funding

Proposition 98 sets the minimum funding guarantee for K-14 education and is a cornerstone of the education budget:

Funding Levels:

  •   2022-23: $97.5 billion
  •   2023-24: $98.5 billion
  •   2024-25: $115.3 billion

This represents an overall increase of $1.9 billion compared to previous estimates, signaling a strong commitment to education funding despite fiscal challenges.

 

Key Allocations and Provisions

  1. Local Control Funding Formula (LCFF):
    • $5.3 billion allocated for LCFF in 2023-24.
    • This ensures that schools receive necessary funding based on student needs, promoting equity and addressing disparities.
  2. Categorical Deferrals:
    • $2.3 billion in unallocated categorical deferrals from 2022-23, ensuring previous commitments are met.
    • $3.6 billion in deferrals from 2023-24 to 2024-25.
    • Additional deferrals of $246 million from 2024-25 to 2025-26.

Obligation Schedule:

  • Establishes a payment schedule for $6.2 billion from 2022-23, beginning in 2026-27. This creates a predictable funding path and avoids abrupt financial disruptions.

Inclusive Early Education

Inclusive Early Education Expansion Program:

  • $100 million restored to support early education, ensuring inclusivity and access from the foundational stages of learning.

What’s next?

  • The legislature will be voting on the final budget this week.
  • The facilities bond measure will be voted on this week to qualify for November’s general election. June 27th is the last day for a legislative measure to qualify for the November 5th General election ballot.
  • Starting July 3rd, the legislature will be on summer recess until August 5th.