California School News — June 2017
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2017–18 Budget Passes

The 2017–18 budget deal passed by the Senate and Assembly and sent to Gov. Jerry Brown on June 15 comes with added one-time funding and an additional investment in the Local Control Funding Formula, but also raises concerns regarding Proposition 98 supplemental payments which could result in a reduction in funding over the next three years.

“While CSBA is certainly appreciative of the continued investment in the Local Control Funding Formula and allocation of additional one-time funds, this budget continues to look at the formula and not the need,” said CSBA President Susan Henry.

“Our schools are striving to close opportunity and achievement gaps and improve outcomes so that all students are prepared for success in college, career and civic life,” continued Henry. “Meanwhile, California remains well below other states in per-pupil funding at a time when school districts and county boards face enormous increases in pension contributions, rising transportation costs and other financial pressures.”

The LCFF investment of $1.4 billion brings the formula to 97 percent of full funding. Compared to the January budget, one-time funding has significantly increased, coming in at $876 million — or $148 per student. This one-time money will be available to local education agencies in May of next year. A proposal in the May Revision to sequester more than $1 billion until May of 2019 was not included in the approved budget.

The total Proposition 98 guarantee of $74.5 billion comes with concerns about the waiver of Proposition 98 “Test 3B” provisions. The Budget Act waives Proposition 98 Test 3B payments over the next three budget years. Test 3B supplemental appropriations are required by law to be issued by the state in Test 3 years when state revenues are stalled or growing at a slower rate. This is to ensure that the Proposition 98 funding level runs evenly with the rest of the state budget. While 2017–18 is a Proposition 98 Test 2 year, each of the next three budget years (2018–19 through 2020– 21) are projected to be Test 3 years, which could result in money being owed to schools in each of those years. Based on current projections, waiving Test 3B essentially waives those payments, which could total more than $1 billion.

Other K-12 budget allocations are a 1.56 percent cost-of-living adjustment for select categorical programs, $7 million for support of County Offices of Education Local Control and Accountability Plans and for a five-year extension of the District of Choice program.

Tied to the budget deal is a key piece of legislation related to the multiyear effort by labor organizations to require that public employers provide local union representatives with access to newly hired employees. Senate Bill 104, a budget trailer bill, is a considerable improvement over previous proposals that contained costly and time-consuming prescriptions for school districts, and the bill addressed many of the issues that CSBA had brought forward in previous legislative cycles.

Visit for additional details about the 2017–18 budget.