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ACSA State Budget Analysis 6.26.20

The Association of California School Administrators is the largest umbrella organization for school leaders in the United States, serving more than 17,000 California educators.

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2020-21 STATE BUDGET Governor Gavin Newsom and the state Legislature have reached a budget compromise that, on balance, is favorable to California public schools and the students we serve. Given the devastating effects of COVID-19 on the economy, we are grateful that the budget shields education from the draconian cuts proposed previously. We also recognize, however, that schools are not being "held harmless," as suggested by some, because educators are being asked to do more than ever before during these unprecedented times. EDUCATION FUNDING OVERVIEW Local Control Funding Formula (LCFF) The budget maintains LCFF funding at 2019-20 levels, providing no Cost of Living Adjustment (COLA). K-12 Categorical Programs The budget rejects the governor's proposed cuts and maintains funding at 2019-20 levels for K-12 Education Categorical Programs, including Adult Education and Career Technical Education (CTE) programs. Deferrals The budget includes significant LCFF apportionment deferrals in 2019-20 and 2020-21. Specifically, for 2019-20, the budget defers $1.85 billion of the June apportionment, which will be paid by July 15. The deferral schedule for 2020-21 is as follows: • $1.5 billion (partial) from the February apportionment to be paid in November • $2.375 billion (full) from the March apportionment to be paid in October • $2.375 billion (full) from the April apportionment to be paid in September • $2.375 billion (full) from the May apportionment to be paid in August • $2.375 billion (full) from the June apportionment to be paid in July Of these deferrals, $5.8 billion would be rescinded if sufficient federal funds become available, beginning with the rescission of deferrals from "any months occurring earliest in 2020-21." Limited deferral exemptions will be made for districts that would be caused financial hardship by the deferrals. Special Education (SPED) The budget provides $545 million to equalize SPED base rate funding up to $625 per Average Daily Attendance (ADA). Special Education Local Plan Areas (SELPA) currently receiving more than $625 per ADA will be "held harmless" at their 2019-20 levels. Funding will be distributed to SELPAs based on the highest ADA of current year, prior year or second most recent prior year. The budget also includes $100 million to augment funding for the low-incidence pool, which supports students with severe disabilities.

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