State budget for 2023-24 protects public education with ongoing funding; staffing crisis requires more support:
Governor Newsom and the state Legislature came to an agreement in late June on a budget for 2023-24 that includes $225 billion in general fund expenditures while addressing a $31.7 billion deficit.
The Proposition 98 funding minimum guarantee is $108.3 billion in 2023-24, which is less than what last year’s enacted budget assumed, but slightly higher than the revised guarantee for 2022-23.
Spending for K-12 education totals $129.2 billion (including funds from all sources) while the Community College budget totals $13.5 billion, including $12.5 billion in Prop. 98 funds). Core areas of the K-12 and Community College systems’ budgets were increased by a statutory COLA of 8.22 percent and most of the previously proposed cuts to one-time funding were avoided. The University of California and CSU systems received core funding increases of 5 percent.
Despite the overall shortfall, this year’s budget continues to
build the state’s reserves. This year, the reserves will reach an
all-time high of $37.8 billion; this includes deposits of $22.3
billion into the Budget Stabilization Account (California’s Rainy
Day Fund), $900 million to the Safety Net Reserve, $3.8 billion
to the discretionary reserve (the Special Fund for Economic
Uncertainties), and $10.8 billion into the Proposition 98
Reserve, officially known as the Public School System
Stabilization Account. The 10% cap on most districts’
reserves
will continue to be in effect this coming year.
The package includes budget bills (AB 102 and SB 101) and numerous trailer bills, including AB 116 (Early Childcare and Education), SB 114 (Education Finance: Education Omnibus), SB 115 (Arts and Music in Schools), SB 117 (Higher Education). Additional trailer bills are expected in August and September.
