The 2019-2020 budget signed by Gov. Gavin Newsom June 27 includes total funding of $103.4 billion for all K-12 education programs, the largest investment ever for the state’s more than 6 million students.

That total investment ($58.8 billion from General Fund and $44.6 billion other funds) raises per pupil spending in California to $11,993. ACSA Governmental Relations has been tracking the budget since Newsom’s January proposal and has prepared the following highlights of key appropriations in the final budget affecting preschool through 12th grade. Proposition 98 funding level: For the 2019-20 fiscal year, the Proposition 98 minimum guarantee is estimated to be $81.1 billion, an increase of $2.7 billion from the 2018 Budget Act. Proposition 98 reserve: Approved the first deposit of $389 million in Proposition 98 funds into the Public School System Stabilization Account established by voters in 2014 via Proposition 2. Local Control Funding Formula: Despite commitments by both legislative houses to augment the statutory Cost-Of-Living-Adjustment for LCFF, the compromise adopts the May Revision funding level for a cost of $1.9 billion to apply a 3.26 percent COLA to LCFF. The agreement does not include the adoption of trailer bill language to establish new LCFF aspirational targets commencing with 2020-21, as proposed by AB 39 (Muratsuchi). Pension relief for CalSTRS and CalPERS employer contributions: The final agreement includes a one-time buydown for both pension systems by adopting the May Revision’s proposal. This appropriation includes: • $2.25 billion in one-time General Funds to reduce CalSTRS long-term liabilities • $904 million in one-time General Funds to reduce CalPERS school long-term liabilities. Overall, this payment is expected to save employers $6.1 billion over the next three decades. Special Education funding: In one of the most significant negotiations this year, the final compromise includes augmentations for special education programs, the first such changes in decades. The Legislature prevailed in finding a more equitable distribution of funds by rejecting the governor’s January proposal. Instead, the agreement includes $152.6 million in ongoing Proposition 98 funds to bring all LEAs to a statewide base rate on special education and $493 million in ongoing Proposition 98 funds for grants to LEAs serving 3- to-5-year-olds with an Individual Education Plan. The Legislature intends to adopt trailer bill language to make ongoing funding contingent upon the passage of legislation in 2020-21 to reform the Special Education system to improve outcomes for students.  Mental health: For the first time since the passage of Proposition 63 in 2004, the Legislature has reconfirmed its commitment to expand mental health services to public education youth. While these new investments will not go directly to LEAs, the compromise includes $10 million in ongoing and $40 million in one-time Proposition 63 funds for school mental health competitive grants for partnerships between county mental or behavioral health departments and LEAs.  Career Technical Education: Despite attempts by the Assembly to redirect $150 million to the CTE Incentive Grant Program, the compromise kept the funding within the existing K-14 Strong Workforce Program adopted in the 2018 Budget Act, which is administered by the Community College Chancellor’s Office. The California Department of Education will continue to administer the existing CTE Incentive Grant Program. Professional development for administrators: The final agreement includes the May Revision’s proposed $13.8 million in federal funds for the 21st Century California School Leadership Academy. These funds will be available for competitive grants for educational non-profits and institutions of higher education that have the expertise in providing professional development. Professional development for teachers and paraprofessional: Approved $37 million total in one-time General Funds for capacity building efforts for educators and paraprofessionals. Of this amount, $10 million will be for English Learner Roadmap-related professional development, $5 million for special education-related professional development, and the remainder funding for other areas, including social emotional learning, restorative practices and ethnic studies. These funds will not go directly to LEAs.