After weeks of negotiations, the Governor and Legislature have reached a final budget agreement. Last night, June 29, 2022, the Legislature voted to pass AB 181, the education omnibus budget trailer bill; and AB 182, the bill related to the Learning Recovery Emergency Fund. Then today, June 30, 2022, the Governor signed numerous budget bills, meeting the statutory deadline.

The final budget agreement is historic, reflecting an overall state budget of $300 billion with education spending higher than it has ever been. The majority of the increase in education spending goes to the Local Control Funding Formula (LCFF) and block grants that reflect a continued commitment to local control.

This report highlights the major education budget proposals that have been adopted for the 2022-23 fiscal year.


Proposition 98
Final Budget: Provides $96.073 billion for 2020-21, $110.199 billion for 2021-22 and $110.334 billion for 2022-23. The Proposition 98 Guarantee rebenched by $614 million to accommodate estimated new transitional kindergarten (TK) enrollments in 2022-23.


Local Control Funding Formula
Final Budget: Provides the statutory cost-of-living adjustment (COLA) of 6.56% and an additional 6.28% to district LCFF, totaling $9 billion increase to school district and charter school LCFF funding, including a 13% base to the formula.

Base and COLA

  • $4.32 billion in LCFF base increases, above statutory growth, and COLA.
  • $771 million for LCFF growth and COLA.
  • $101.2 million ongoing Proposition 98 for county offices of education (COEs) through their LCFF allocation and clarifies funding for differentiated assistance. Each COE will receive $175,000 for each school district in the county, as well as an additional $14 per average daily attendance (ADA). It also provides $11.2 million to fund the 6.56% COLA.

COVID-19 Attendance Relief and Three-Year Average

  • Provides $2.8 billion in LCFF increases by protecting:
    • Declining enrollment in LCFF by allowing school districts to consider their current year, prior year or the average of the three prior years’ ADA in funding calculations;
    • 2021-22 ADA for local education agencies (LEAs) that can demonstrate they provided independent study (IS) offerings to students who were absent due to mandated public health quarantine; and
    • Declining enrollment for classroom-based charter schools for the 2021-22 fiscal year ($413 million one-time Proposition 98 General Fund).

Public School System Stabilization Account and Local Reserve Cap
Final Budget: Provides $9.5 billion and the school district reserve cap is effective in 2022-23.


Final Budget: Provides $637 million ongoing Proposition 98 General Fund to the Home to School Transportation LCFF add-on so LEAs can be funded at up to 60% of their transportation costs, or their current add-on, plus ongoing COLA. The budget also:

  • Requires LEAs to develop a plan for how they will provide transportation services to their students, prioritizing low-income and those in TK-6.
  • Requires the governing board to adopt the plan on or before April 1, 2023, and have it updated by April 1 each year thereafter.
  • Prohibits LEAs from charging a fee for unduplicated pupils.

Final Budget: Provides $1.5 billion one-time Proposition 98 General Fund to the California Energy Commission and California Air Resources Board to administer a zero-emission school bus program that will prioritize low-income and rural LEAs and LEAs purchasing electric school buses with bi-directional charging.


Learning Recovery Emergency Block Grant
Final Budget: AB 182 provides $7.9 billion one-time Proposition 98 General Fund to TK-12 for use through 2027-28. The funds would be allocated based on an LEA’s unduplicated pupil percentage (UPP) for the following purposes:

  • Instructional learning time, providing summer school or actions that increase or stabilize the amount of instructional time or services provided to pupils, or decrease or stabilize staff-to-pupil ratios, based on pupil learning needs.
  • Implementation, expansion or enhancement of learning supports.
  • Addressing other barriers to learning.

LEAs receiving these allocations would need to report interim expenditures to the California Department of Education (CDE) by December 1, 2024, and December 1, 2027, as well as a final report no later than December 1, 2029.


Arts, Music, and Instructional Materials Discretionary Block Grant
Final Budget: Provides $3.5 billion one-time Proposition 98 General Fund that would be distributed based on ADA and using reported ADA for 2021-22. These funds can be used for learning tools in arts, music, instructional materials and multi-lingual school library books. They can also be used for operational costs, such as retirement, health care costs and costs related to COVID 19. Funds shall be available for encumbrance through the 2025-26 fiscal year.


Child Nutrition
Final Budget: Provides $600 million one-time Proposition 98 General Fund for the Kitchen Infrastructure Grant Program and $100 million for the Food Best Practices Procurement Grant to promote best practices, such as buying California grown produce and providing meals to students with dietary restrictions.


Final Budget: Provides the remaining $1.4 billion in Proposition 51 bond funds and $1.3 billion in General Fund to the State Allocation Board in 2022-23. There is also intent language to fund $2 billion in 2023-24 and $875 million in 2024-25 for the school facilities program.
Final Budget: Provides $650 million in one-time General Fund toward the California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program and clarifies that community colleges that operate preschool programs on behalf of COEs or school districts can apply for funds in this program.


Expanded Learning Opportunity Program (ELOP)
Final Budget: Increases funding levels for ELOP for total program funding of $4 billion ongoing Proposition 98 General Fund (a reduction from the $4.8 billion as proposed in the May Revision) starting in 2022-23. The budget funds LEAs with 75% or more UPP at $2,750 per UPP and other LEAs at $1,250 per UPP, as well as provides a grace period in the 2022-23 school year so LEAs will not be audited until the 2023-24 school year.


Community Schools Partnership Program
Final Budget: Provides $1.1 billion Proposition 98 General Fund (reduced from $1.5 million as proposed in the May Revision) and extends the encumbrance date for the $3 billion that were provided in last year’s budget for community schools by three years, from June 30, 2028, to June 30, 2031. $140 million of those appropriated funds will be allocated to COEs serving at least two grant recipients to coordinate partnerships to support community school implementation at grant recipients in their county, including designating a county-level community schools liaison.


Special Education
Final Budget: Increases the special education base rate to $820 and makes statutory changes to calculate special education funding rates by LEA ADA. The budget also:

  • Requires an Individuals with Disabilities Education Act (IDEA) Addendum process for the Local Control Accountability Plan (LCAP) that will be adopted by the State Board of Education by 2025 to coordinate IDEA spending planning process with existing LCAP spending planning. Upon identification by CDE that an improvement plan is necessary, the identified school district, COE or charter school shall complete the IDEA Addendum.
  • Consolidates two extraordinary cost pools into a single cost pool to simplify the current funding formula and brings funding to a total of $20 million in ongoing Proposition 98 General Fund.
  • Beginning in 2023-24, shifts funding for Educationally Related Mental Health Services funds from Special Education Local Plan Areas to LEAs.
  • Creates an Alternate Pathways to a Diploma for individuals with exceptional needs and provides exemptions for students who take alternate assessments.

Independent Study
Final Budget: Makes changes to the IS program by doing the following:

  • Clarifies requirements for special education students, clarifies synchronous instruction allowances and clarifies chronic attendance triggers for tiered re-engagement and signature timelines.
  • Updates chronic absenteeism provisions, written agreement requirements, exemptions for students who participate in IS due to necessary medical treatments, etc.
  • Updates definition of synchronous instruction.
  • Changes provisions of IS to students with an Individualized Education Program.
  • Ability to claim ADA for pupils who receive services from a nonpublic, nonsectarian school.
  • Provides intent language around serving students with exceptional needs in IS.

Transitional Kindergarten
Final Budget: Makes the following investments in early education:

  • Provides $300 million additional one-time Proposition 98 General Fund for additional Pre-Kindergarten Planning and Implementation Grants, including operational costs.
  • $611 million Proposition 98 General Fund to expand eligibility.
  • $383 million Proposition 98 General Fund to reduce the adult-to-student ratio.
  • Provides authority for schools to place teachers with bachelor’s degrees and early childhood education permits for lead TK teachers in existing teacher intern authority.

Necessary Small Schools
Final Budget: Revises the funding for necessary small schools and high schools, including increasing the various amounts per pupil and per full-time teacher or certificated employee.


Classified School Employee Summer Assistance Program
Final Budget: Provides $90 million ongoing Proposition 98 General Fund.

  • $200 million one-time Proposition 98 General Fund, available over five years, to expand dual enrollment planning and implementation opportunities.
  • $100 million one-time Proposition 98 General Fund for the Community Engagement Initiative Expansion, which will be co-administered by the California Collaborative for Education Excellence and the lead agency.
  • $500 million in one-time Proposition 98 General Fund for the Golden State Pathways Program to support the development and implementation of college and career educational pathways in critically needed sectors of the economy.
  • One-time $250 million Literacy Coaches Program for intensive literacy action plans in schools with at least 97% low-income student populations, with minimum grant awards of $450,000 per school site, over five years.
  • Augments the Teacher Residency Grant Program from the 2021 Budget for a total program increase of $250 million Proposition 98 General Fund with reappropriated funds and expands eligibility to school counselors. It also extends the sunset deadline by one year to 2030.
  • Extends substitute teacher 60-day maximums through the 2022-23 school year.
  • $357.1 million for 6.56% COLA for other statutorily required programs outside of the LCFF, including school meals, preschool and special education.


  • AB 178 Amended Budget Bill (amends SB 154)
  • AB 181 Education Omnibus Budget
  • AB 182 Learning Recovery Block Grant
  • AB 210 Childcare and Education