Last month, Governor Newsom released the proposed statutory changes that conform with his January budget proposals, known as trailer bill language. This article provides an in-depth analysis of the major education proposals and highlights recommendations made by the Legislative Analyst’s Office.

As the Assembly and Senate Budget Subcommittees on Education Finance begin overview hearings, you can follow the CASBO advocates on Twitter at @CASBOGR to watch hearings and read daily updates on both budget and policy matters during the 2020 legislative session.

Overview of Proposition 98 Spending

Governor Newsom’s January budget package proposes $84 billion in Proposition 98 funding, an increase of 3.8 percent from the 2019-20 fiscal year. In K-12 education spending, the Administration commits $2 billion in one-time spending and $1.4 billion in on-going support dedicated to fund a 2.29 percent cost of living adjustment for the Local Control Funding Formula and various categoricals, as detailed below.

The Legislative Analyst’s Office recommends the Legislature adopt a budget plan that supports a balanced approach of ongoing and one-time spending in order to avoid cuts to ongoing K-12 programs should the Proposition 98 guarantee fall below projections, and free up a portion of one-time funding to pay down school districts’ unfunded pension liabilities.

Early Education

State Preschool. The Governor proposes $32 million General Fund to support 10,000 additional full-day State Preschool slots for non-school based agencies, beginning April 1, 2021. The LAO recommends a reduced amount of slots due to unspent funding from the 2019-20 fiscal year and a streamlined application process for current preschool providers interested in expanding their programs.

Department of Early Childhood Development. The Governor proposes to establish the Department of Early Childhood Development under the California Health and Human Services Agency with $6.8 million for 26 positions in 2020-21 and $10.4 million ongoing General Fund for 52 positions in 2021-22. The department would begin administering the state’s child care programs. The LAO recommends the Legislature reject this proposal, as it lacks necessary information on the structure and effectiveness of the new agency to streamline programs and services.

Inclusive Early Education Expansion Program. The Governor proposes $75 million one-time Proposition 98 General Fund to the Inclusive Early Education Program, in order to increase access to child care and preschool services for students with disabilities. The LAO recommends the Legislature reject this proposal.

Preschool Facilities Funding. The Governor proposes to redirect $150 million General Fund from last year’s Kindergarten Facility Grant Program to support construction and renovation of preschool facilities on LEA campuses. The LAO recommends the Legislature use the $75 million from the Inclusive Early Education Expansion Program to support this proposal.

Special Education

Governor Newsom proposes a multi-layer approach to restructuring the special education funding formula, which would sequence changes over a period of years.

    1. Modify base rates. In 2020-21, the Governor proposes $645 million to increase the base rate for most special education local plan areas (SELPAs) to $660 per student. SELPAs with higher rates will be held harmless and receive only a COLA the first year.
    2. Changes to base rate calculation. Beginning in 2020-21, base rates would use a three-year rolling average of student attendance, rather than the greater of the current year or prior year. Funding would continue to be allocated to SELPAs, with the average of student attendance calculated for each local educational agency.
    3. Categorical programs & SELPA membership frozen until a new funding formula is set. Categorical programs and SELPA membership would be frozen at 2019-20 funding levels, with cost of living adjustments, and modified until a final funding system is established. School districts would be prohibited from opting out of their current SELPA to establish its own for the time period.\
    4. Establish three working groups to develop reforms. The Governor proposes $1.1 million to establish three working groups to focus on:
      • $500,000 to study governance and accountability to improve services and student outcomes.
      • $350,000 to develop a standardized Individualized Education Plan (IEP) template and a potential IEP reporting system.
      • $250,000 to develop pathways for students with disabilities to attain a high school diploma.
    5. Preschool services. The Governor proposes $250 million in one-time support based on the number of preschool-aged students with disabilities for LEAs to increase and improve programs and services.
    6. Dyslexia Initiative. The Governor proposes $4 million to promote best practices for educating and identifying students with dyslexia. The proposal would create professional development opportunities and host a statewide conference at the end of 2020.

LAO Recommendation. The Legislative Analyst’s Office recommends that the Lgislature: 1) adopt the Governor’s base funding increases to address historical inequities and redirect the preschool funding for an ongoing base increase and incorporate preschool-aged children using Kindergarten data information as a proxy to count these students into the base formula.

Teacher Recruitment & Workforce Programs

Education Workforce Investment Grant. The Governor proposes $350 million for professional development in STEM and computer science ($100 million); literacy training ($75 million); school climate and mental health ($75 million); special education ($50 million); and English Language learners training ($50 million).

The California Department of Education would administer the funds that would require the eligible entities (school districts, county offices of education, charter schools and regional occupational centers) to collaborate with state agencies and higher education institutions.

Workforce Development Grant Program. The Governor proposes $193 million to recruit staff to provide counseling and student support services in areas of high-need and facing shortages. Of these funds, $20 million would support planning grants for at least 100 LEAs or consortiums and $100 million for implementation grants. The lead agency that administers the program would receive about $3 million for administrative purposes.

The California Department of Education would select a county office of education to administer the program. School districts, county offices of education, charter schools, and state schools that serve students with disabilities would be eligible to apply for this grant.

Teacher Residency Grant Program. The Governor proposes $175 million to expand or establish residency programs in special education, bilingual education, science, engineering, and math. The program would provide $20,000 per candidate with a $1 for $1 matching requirement.

The California Commission on Teacher Credentialing would administer the program with eligibility for school districts, county offices of education, charter schools, regional occupational centers, and nonsectarian private schools with priority for entities serving over 50 percent of students that qualify for free and reduced price meal and rural or dense regions.

California Teacher Credentialing Award Program. The Governor proposes $100 million to offer stipends to new teachers in high-need subjects and that work in disadvantaged communities facing teacher shortages.

The California Commission on Teacher Credentialing would administer the program that would award eligible teachers $5,000 a year for four years. School districts, county offices of education, and state schools for students with disabilities would be eligible to apply.

Classified School Employee Teaching Credentialing Program. The Governor proposes $64.1 million to continue to support this program, which was established in the 2016-17 fiscal year. The program provides financial support to candidates to complete their bachelor’s degree and teaching credential.

The Commission on Teacher Credentialing would administer the program that provides eligible candidates $4,000 a year for up to five years. School districts, county offices of education, and charter schools would be eligible to apply.

LAO Recommendation. The Legislative Analyst’s Office recommends that the Legislature reject the Educator Workforce Investment Grant, Workforce Development Grant Program, and California Teacher Credentialing Award Program proposals as these programs do not address root causes in teacher shortages and does not allow sufficient time for the Legislature to evaluate the current programs’ performance. The LAO recommends providing $29 million for the Teacher Residency Grant Program and reject program changes as the current structure targets high-need areas. The only proposal that the LAO recommends full adoption without modifications is the Classified School Employee Teaching Credential Program.

School Improvement Programs

Opportunity Grants. The Governor proposes $270 million to provide grants and technical assistance to low-performing districts and schools where at least 90 percent of students are low-income. The funding could be utilized for wrap-around services, staff hiring and retention strategies, and new instructional materials. Recipients could be a school or consortia of schools within a district, a school district or county office of education with numerous high-poverty schools in its jurisdiction or a charter school.

The California Collaborative for Educational Excellence (CCEE) would receive an additional $30 million to administer this program. The CCEE in collaboration with the Department of Education, and with final approval by the State Board of Education, would be responsible for determining the size of grants, eligibility criteria, and program requirements.

California Community Schools Partnership Grants. The Governor proposes $300 million to create a program that would provide start-up funding to implement the community schools model. The grant amounts are to be determined by the administering agency.

The California Department of Education would administer the program and develop an application process, with final approval by the State Board of Education. Grants would be distributed in a competitive manner and eligibility is based on school districts, county offices of education, and charter schools that educate at least 90 percent of low-income students.

County Outreach Funding. The Governor proposes $18 million to be administered by the California Collaborative for Educational Excellence to provide county offices of education with grants to improve coordination and access of wrap around services. The size of each award would be determined by CCEE.

LAO Recommendation. The Legislative Analyst’s Office recommends that the Legislature: 1) reject the Opportunity Grants proposal and consider a smaller augmentation for intense technical assistance for specific school districts; 2) fund a smaller community schools pilot program; and 3) reject the county outreach funding.

Child Nutrition. The Governor’s budget proposes $60 million in ongoing support for a rate increase for the free and reduced price meals served to eligible students and $10 million in one-time funding to train food service staff on three topics: 1) food preparation, 2) healthy food marketing, and 3) changing a school lunch environment.

LAO Recommendation. The Legislative Analyst’s Office recommends that the Legislature consider alternative use for these available funds for other educational purposes, and if it adopts the rate increase they recommend to eliminate the Governor’s proposed reporting requirement and expand the training fund for a broader set of expenses, including supplies.

Trailer Bills & LAO Reports

Education Omnibus TBL #1
Education Omnibus TBL #2
Department of Early Childhood Development TBL
Special Education Reforms
Special Education Formula
LAO Proposition 98 Education Analysis
LAO Early Education Analysis

To provide feedback on any of these proposals, please email Sara Bachez at sbachez@casbo.org.