Topline:
California’s budget is $37.9 billion short, but Gov. Gavin Newsom’s proposal largely maintains funding for K-12 schools, kids’ mental health, and community schools.
Why a deficit? Newsom said the $37.9 billion deficit is the result of two major factors— lower-than-predicted revenue and a delay in California income tax collection after last year’s winter storms.
Per pupil funding: California schools can expect to see about the same amount of funding per student as last year, and education spending overall is increasing slightly from 2023. The budget proposal does cut back on some K-12 spending, including money for school repair, construction and classroom renovations for transitional kindergarten.
Tapping reserves: Newsom plans to offset the budget deficit, in part, by withdrawing $5.7 billion from the education rainy day fund to support school spending between 2023 and 2025. Voters approved changes in 2014 that created a separate budget reserve for K-12 schools and community colleges and this would be the first time the state has withdrawn money from the fund.
A grain of salt: If adopted, the proposed cuts and delays to housing, transportation, and environmental funding can affect students and their families.
“The entire social safety net programs… are pretty crucial in terms of supporting families,” said California Budget and Policy Center Senior Analyst Jonathan Kaplan. “Without sustained effort in those areas. You could see continued problems for issues around chronic absenteeism.”
What's next? Newsom must present a budget revision in May and work with the legislature to approve a final budget in the summer.
