Today, May 14, 2021, Governor Newsom released his revised 2021-22 state budget proposal that reflects a strong, economic turnaround projecting a $75.7 billion surplus and over $25 billion in federal relief. This report details the major state budget proposals impacting the state fiscal conditions and public education systems.

2021-22 Governor’s May Revision
Revenue Sources
(Dollars in Millions)

Proposition 98 Funding
2011-12 to 2021-22
(Dollars in Billions)

Major State Proposals

K-12 Public Education

The May Revision creates the California for All Kids Plan, a roadmap to address structural opportunity gaps by 2025-26, focusing on early education, school nutrition, teacher support, reducing class sizes, broadband access and wrap-around services.

Proposition 98

Cost of Living Adjustment (COLA)

• Proposes to adjust the compounded COLA for the Local Control Funding Formula (LCFF) from 3.84% to 5.07%.

• Proposes to update the 2021-22 COLA of 1.05% to 1.07% for categorical programs outside of the LCFF and special education.

• Proposes an increase of $29.7 million to reflect a 5.07% COLA and average daily attendance changes applicable to the LCFF formula for county offices of education (COEs).

• Proposes an increase of $117.7 million to adjust the COLA for state special education funding from 1.5% to 4.05%.

Reopening Schools

• Assumes full-time, in-person instruction as the default for the 2021-22 academic year but does acknowledge some families may not be ready to send their kids back to in-person instruction. To address families’ requests for distance learning, the Administration proposes changes to the existing independent study program that will allow local education agencies (LEAs) to continue generating state funding, as follows:

o Provide access to technology, connectivity, and a rigorous curriculum;

o Implement a framework of tiered re-engagement strategies for students; and

o Track and record daily student participation and interaction with teachers.

• Proposes $2 billion one-time Proposition 98 General Fund for health and safety purposes, such as promoting testing and vaccines, cleaning, and improving ventilation.

Expanded Learning Time

• Proposes a five-year plan for expanded learning time, including expanded-day, full-year instruction and enrichment for elementary students where there is a high concentration of low-income, foster youth and English language learners with the goal of providing access to no-cost after school and summer programs by 2025-26. The programs would:

o Offer tutoring or homework assistance and a supplemental element that can include, among other things, science, technology, engineering and math; career technical education (CTE); and recreation.

o Maintain an adult-to-student ratio of 1:10 for transitional kindergarten and kindergarten and 1:20 for students in first through sixth grade.

• Proposes $1 billion in 2021-22, which would increase to $5 billion in 2025-26. Implementation would prioritize LEAs with the highest proportion of low-income, foster youth and English language learners. Once fully implemented, it is proposed to incorporate these funds into the LCFF concentration grant calculation.

Universal Transitional Kindergarten

• Proposes in 2022-23 to establish, and phase in over four years, universal transitional kindergarten for full implementation by 2024-25. The phase-in eligibility threshold would change in increments of three months of age per year. The estimated cost is approximately $900 billion General Fund in 2022-23, which would increase to $2.7 billion by 2024-25.

• Proposes to rebench Proposition 98 Guarantee and repurposes $250 million one-time funds from the Governor’s January Budget for planning and implementation grants for all LEAs instead of expansion of services.

• Proposes $380 million Proposition 98 General Fund in 2022-23, to grow to $740 million in 2024-25, in order to reduce adult-to-child ratios from 1:24 to 1:12. Includes $10 million one-time General Fund for the Department of Education to update the recommended learning standards for preschool and transitional kindergarten.

• Proposes to develop an implementation plan in 2022-23 to support existing State Preschool Program Providers in maintaining their contracts during their transition to serve younger children.

Comprehensive Student Supports

• Proposes $3 billion one-time Proposition 98 General Fund, over several years, to expand the use of the community school model to more than 60% of LEAs to convert campuses into full-service community schools.

• Proposes $1.1 billion Proposition 98 General Fund for an ongoing increase to the LCFF concentration grant, focused on increasing the number of adults providing direct support for students on campus. It would be required that the use of these funds, be demonstrated in the Local Control Accountability Plan.

• Proposes $30 million one-time Proposition 98 General Fund to COEs to provide direct services for youth in foster care.

• Proposes $2 billion one-time federal funds and $623 million one-time Proposition 98 General Fund to provide intensive tutoring.

• Proposes $1 billion one-time General Fund to better connect children and youth to behavioral health care and expanding the infrastructure to provide care for those under the age of 26. This is an increase from $400 million in the Governor’s Budget.


• Proposes $150 million ongoing Proposition 98 General Fund to increase the state reimbursement rate for school meals with the goal of encouraging LEAs to participate in one of the federal universal meal provisions. This increases the reimbursement rate by about $0.25.

• Proposes $100 million one-time Proposition 98 General Fund to provide school kitchen infrastructure upgrades and training for nutrition staff.

• Proposes $30 million one-time General Fund to the Department of Food and Agriculture to support the Farm to School initiative (up from $10 million in the Governor’s January Budget).

Special Education

• Proposes $117.7 million Proposition 98 General Fund to increase the COLA from 1.5% to a compounded 4.05%, increasing the base rate.

• Proposes $277.7 million one-time federal Individual with Disabilities Act (IDEA) funds.

• Proposes $15 million one-time federal IDEA funds to provide support in developing and administering comprehensive individualized education programs and develop tools and resources to assess and address academic impacts of the COVID-19 pandemic.

• Proposes $2.3 million federal IDEA funds (of which $965,000 is available on a one-time basis) and six positions for the Department of Education to address special education complaints, perform court-ordered special education monitoring and purchase special education monitoring software.

• Proposes $1.2 million federal IDEA funds (of which $1.1 million is available on a one-time basis) and one position to improve coordination and support the transition from IDEA Part C to Part B programs, as well as convene stakeholder work groups to address data sharing and disseminate best practices to increase access to more inclusive settings for toddlers.

Educator Preparedness & Retention

Other K-12 Budget Adjustments

Additional Materials

Department of Finance – Trailer Bill Language