Strong Economy Continues Education Increases in Governor's 2016-17 Budget Plan
January 8, 2016 Last week, Governor Jerry Brown introduced his proposed state budget for the 2016-17 fiscal year. The budget includes $5.4 billion more for K-14 education, including $2.8 billion more for the Local Control Funding Formula (LCFF), $1.2 billion in one-time block grants and $20 million to support charter school start up grants to replace lost federal funds. We thank the Governor and his team for recognizing the critical need for these funds!
The Governor's proposal is only the first step of a budget process that will continue through June. We will keep you posted as details emerge and the proposal is debated through the legislative session. Stay tuned for a full CCSA Budget Brief and additional resources in the coming days.
In the meantime, here are some of the highlights:
- $20 million one‑time Proposition 98 General Fund for Charter School Startup Grants to support operational startup costs for schools opening in 2016 and 2017, which will help offset the loss of federal funding previously available for this purpose.
- $122.6 billion total General Fund expenditures for 2016-17, an increase of $6.5 billion over 2015-16.
- Total Proposition 98 K-14 funding guarantee in 2016-17 of $71.6 billion, and $257 million in one-time increases for prior years adjustments.
- Total per-pupil expenditures from all sources are projected to be $14,184 in 2015‑16 and $14,550 in 2016-17. Ongoing K‑12 Proposition 98 per-pupil expenditures are $10,591 in 2016‑17.
- $2.8 billion for the fourth-year investment in the Local Control Funding Formula, building upon almost $12.8 billion provided over the last three years, a 5.4 percent increase over 2015-16. The proposed funding level is enough to bring total formula implementation to 95 percent of target rates.
- $1.6 billion to establish a new early education block grant by combining Proposition 98 funding of three existing early childhood programs: State Preschool Program, transitional kindergarten, and the Preschool Quality Rating and Improvement System Grants.
- $1.2 billion in one‑time Proposition 98 General Fund for school districts, charter schools and county offices of education discretional block grants. (All of the funds provided will offset any applicable mandate reimbursement claims for these entities, meaning they will not likely be available to charter schools opening in 2016-17.)
- Assumes continued SB 740 Facility Grant funding at current year level.
- There is no specific proposal on school facilities, but the Governor expressed significant concern over the current program and the proposed state school bond on next November's ballot. He also encouraged continued dialog to shape a future program for state school construction.