State Revenues for July Ran Higher than Budget Act Forecast

September 9, 2019

After finishing fiscal year 2018-19 above the 2019-20 Budget Act forecast by $1.041 billion, preliminary General Fund agency cash for July, the first month of the 2019-20 fiscal year, was $533 million above the 2019-20 Budget Act forecast of $7.794 billion.

—Personal income tax revenues for July were $364 million above the month’s forecast of $5.403 billion. Withholding receipts were $353 million above the forecast of $5.06 billion. Other receipts were $11 million higher than the forecast of $762 million. Refunds issued in July were $7 million lower than the expected $322 million. Proposition 63 requires that 1.76 percent of total monthly personal income tax collections be transferred to the Mental Health Services Fund (MHSF). The amount transferred to the MHSF in July was $7 million higher than the forecast of $97 million...

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K–12 Education and the New State Budget

By Radhika Mehlotra, Public Policy Institute of California - Rep: August 12, 2019

The recently enacted 2019-20 budget allocates 28% of the total state budget for all K-12 education programs: $103.4 billion ($58.8 billion from the General Fund). Proposition 98, passed by the voters in 1988, establishes a minimum annual funding level for K-12 schools and community colleges. This year, the Proposition 98 funding level is $81.1 billion, bringing K-12 per-pupil expenditures to nearly $12,000. According to the Department of Finance, total per-pupil funding, including all federal, state, and local sources amounts to $17,423.

In addition, the rainy day fund requires the state to set aside savings for future education spending based on specific criteria, including General Fund tax revenue and Proposition 98 funding levels. This year, for the first time ever, the budget triggers a deposit into Public School System Stabilization Account at $376.5 million...

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CSBA, ACSA Partner on Federal Bill to Increase IDEA funding

August 12, 2019

The California School Boards Association and the Association of California School Administrators, through the CSBA/ACSA Federal Partnership, have put forward the “Funding Early Childhood is the Right IDEA Act.” H.R. 4107 was introduced today by Congressman Mark DeSaulnier (D-CA) and Congressman Rodney Davis (R-IL) and will increase funding over the next four fiscal years for early education services for the youngest students needing special education services and programs. Part C of the Individuals with Disabilities Education Act (IDEA) provides funding to states to implement a system of early intervention services for infants and toddlers with disabilities and their families – and for preschool services under Part B of IDEA.

“Over the past two decades, the needs of children and families nationwide for early intervention and preschool special education services have dramatically increased, while federal investments in these services have continuously deteriorated,” said CSBA President Emma Turner...

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School Resources and the Local Control Funding Formula: Is Increased Spending Reaching High-Need Students?

August 12, 2019

Six years after state policymakers enacted the Local Control Funding Formula (LCFF) for California’s K-12 public schools, significant additional resources are going to high-need districts, as intended. However, targeting high-need students remains a challenge, and high-need districts and schools increasingly rely on less-experienced teachers.

These are among the key findings of a report released on August 7 by the Public Policy Institute of California (PPIC).

Due in part to economic growth boosting overall state revenues, state K-12 spending has increased across all school districts since 2012-13, the year before the LCFF went into effect. But student spending rose more in high-need districts than in lower-need districts – an estimated $500 more per student. Among lower-need school districts – those with student populations that are no more than 30 percent high need – student spending increased $2,043 per pupil on average between 2012-13 and 2017-18...

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Department of Finance: State Revenues Running Slightly Above Forecast

July 29, 2019

Preliminary General Fund agency cash for the entire 2018-19 fiscal year was $1.041 billion above the 2019-20 Budget Act forecast of $143.804 billion, or 0.7 percentage point above forecast. Revenues for June were $409 million above the month’s forecast of $19.387 billion, or 2.1 percent above forecast. June cash receipts represent the second estimated payment of 40 percent of liability due mid-month for personal income tax filers and calendar-year corporations.

  1. Personal income tax revenues for the entire 2018-19 fiscal year were $523 million above the forecast of $98.505 billion. Cash receipts to the General Fund in June were $104 million above the month’s forecast of $12.776 billion. Withholding receipts were $184 million below the forecast of $5.115 billion. Other receipts were $132 million higher than the forecast of $8.405 billion. Refunds issued in June were $157 million below the expected $515 million. Proposition 63 requires that 1.76 percent of total monthly personal income tax collections be transferred to the Mental Health Services Fund (MHSF). The amount transferred to the MHSF in June was $2 million higher than the forecast of $229 million...

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Thurmond Praises New State Budget’s Increases for Education Funding

July 15, 2019

Governor Gavin Newsom signed the 2019-20 state budget on June 27, and State Superintendent of Public Instruction Tony Thurmond promptly thanked Governor Newsom for the new budget’s increased funding for public education, education data systems, and teacher and administrator development.

“This budget helps to lift all of our students by improving our education system and increasing the resources that go to our schools,” said Thurmond. “The Governor and Legislature have adopted a budget that reflects their commitment to education as a priority for California.

“I look forward to working with the Governor, the Legislature, and stakeholders in the months ahead to make sure that we make the most of this unprecedented opportunity...”...

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CSBA Litigation Restores $686 Million to Schools in 2019-20 State Budget, Protects More Than $756 Million Annually in Future Budgets

July 15, 2019

California’s public schools will receive hundreds of millions of dollars in additional funding and avoid billions in potential losses thanks to a settlement agreement between the State of California and the California School Boards Association (CSBA). The agreement ensures public schools will receive repayment of $686 million (approximately $110 per student) due to prior year underpayments. It also contains provisions that could protect up to 1 percent of the Proposition 98 guarantee ($756 million in 2017-18 and potentially more in future years) as part of the annual certification process.

“We are pleased that we were able to reach an agreement with the State that upholds both the law and the will of the voters when they passed the Proposition 98 minimum funding guarantee for public schools,” said California School Boards Association President Dr. Emma Turner in a press release on July 2...

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LA Schools to Seek State Money After Ballot Measure Fails

By Christopher Weber - Rep: June 12, 2019

After voters overwhelmingly rejected a property tax that would have raised $500 million annually for the financially struggling Los Angeles Unified School District, the superintendent, mayor and head of the teachers’ union vowed on June 5 to work together to get more state money for schools.

Riding a wave of public support after settling a six-day teachers' strike in January, the union had joined leaders of the nation’s second-largest school district to promote Measure EE. It would have taxed commercial and residential properties 16 cents per square foot of indoor space for 12 years to help pay for the teachers’ contract and other obligations...

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Two Statewide Ballot Measures for Funding Schools Could Be on California’s November 2020 Ballot

By John Myers, Los Angeles Time - Rep: June 3, 2019

Asking voters to weigh in on how to pay for education is hardly new, from the creation of the California Lottery in 1984 to the 1988 ballot measure that created strict constitutional funding formulas. A nonpartisan statewide poll released last month found that 59% of likely voters believe current public school funding isn’t sufficient. And while K-12 education is getting more money than ever before, a variety of long-term problems have left many California school districts in financial distress.

With that in mind, the California School Boards Assn. is strongly hinting it may draft a November 2020 ballot measure asking voters to impose $11 billion in new taxes for schools – specifically, a tax hike on corporate income over $1 million and on personal incomes above $1 million. A CSBA spokesman said additional details of the proposed taxes are still being hashed out...

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LAO’s Analysis of the May Revision Education Proposals

September 9, 2019

(Editor’s note: On May 15, the Legislative Analyst’s Office released its analysis of Gov. Newsom’s May Budget Revision. Below are highlights from the LAO website pertaining to K–12 education.)


The May Revision contains more than 100 proposed changes to education programs. The changes range from large new policy proposals, to major modifications of January proposals, to small adjustments relating to revised student attendance estimates. In this post, we focus on the first two categories of proposals. The post has six sections. The first section provides an overview of the proposals. The next four sections cover specific proposals relating to (1) early education, (2) K-14 education, (3) the universities, and (4) financial aid. The last section covers library-related proposals and a crosscutting proposal relating to education innovation.


New Policy Proposals Raise Many Important Issues for the Legislature to Consider. The May Revision contains more than a dozen major new policy proposals...

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