Implications for State Budget and Education Programs
As the state budget planning progresses, the May Revision proposal provides a glimpse into the potential changes California might witness in the near future.
It is important to note that these proposals are not finalized until the state budget is formally adopted.
In this blog post, we will review some key aspects of the May Revision, focusing on the state’s fiscal situation, the proposed 8.22% COLA increase, and the potential impact on specific education programs such as AMIBG and Learning Recovery Block Grants.
- State Tax Revenue and Fiscal Risks: The May Revision highlights a lower than projected state tax revenue, indicating potential challenges in meeting anticipated budget goals. It suggests an increased risk of the state’s fiscal situation deteriorating further. It is crucial to keep in mind that these factors contribute to the evolving nature of the state budget and the need for ongoing monitoring and adjustments.
- 8.22% COLA Increase: A notable proposal within the May Revision is the plan to provide an 8.22% Cost of Living Adjustment (COLA) to almost all programs. This is a positive development, as it signifies an effort to align funding with the rising costs faced by these programs. The previous estimate for the statutory COLA was 8.13%, but it has been revised upward to 8.22%. The Administration intends to fully fund the increased COLA for the Local Control Funding Formula (LCFF) and also apply it to various education programs such as Special Education, Child Nutrition, State Preschool, Foster Youth, and more.
- Impact on AMIBG and Learning Recovery Block Grants: While the 8.22% COLA increase brings positive news, it is important to consider the potential reductions in specific education programs. These reductions may be partially backfilled with funding from Proposition 28’s Arts and Music in Schools initiative. The net effect of these changes would result in an approximately 25% decrease in the previously published AMIBG amounts and a 32% decrease in funding for the Learning Recovery Emergency Block Grant.
Additional Details:
- Specific SPED Rate: The per-ADA (Average Daily Attendance) Assembly Bill 602 rate is expected to increase from $820 in 2022-23 to $887.40 in 2023-24 due to the slightly higher 8.22% COLA.
- TK Expansion: In 2023-24, Transitional Kindergarten (TK) will be expanded to fund children who turn five years old by April 2, extending educational opportunities for more students.
- ELOP Funding: The May Revision does not propose any changes to the Expanded Learning Opportunities Program (ELO-P), maintaining funding levels similar to 2022-23. However, it suggests a one-year abeyance, requiring funds allocated in 2021-22 to be spent by June 30, 2024, aligning with the deadline for 2022-23 ELO-P funds.
It is crucial to recognize that the May Revision proposal represents a snapshot of potential changes to the state budget and education programs. While the 8.22% COLA increase brings hope, reductions in AMIBG and Learning Recovery Block Grant funding may pose challenges to the affected programs. As the state budget adoption progresses, it is expected that these details will evolve, making it necessary to stay informed about the final decisions.
