GOV. NEWSOM'S JANUARY BUDGET
PROPOSAL FOR 2021-22
Governor Gavin Newsom's budget proposal reflects the dramatic rebound in the state's economy.
Last year's state budget had a $54 billion shortfall, while this year, the Governor cites the inclusion of
$34 billion in "budget resiliency," which is a combination of record-high state reserve levels and
budget surplus. Governor Newsom framed his proposed budget as one that would expedite the
state's health and economic crisis caused by COVID-19.
EDUCATION FUNDING OVERVIEW
PROPOSITION 98: The Governor proposes $85.8 billion for the Prop. 98 guarantee, which would
represent a $14.9 billion increase over last year's enacted budget. For 2021-22, Prop. 98 funding
would reach $12,648 per pupil.
Source: http://www.ebudget.ca.gov/FullBudgetSummary.pdf
LOCAL CONTROL FUNDING FORMULA (LCFF): The Governor proposes $64.5 billion for the LCFF.
This reflects a 3.84 percent cost of living adjustment (COLA) for the LCFF, which combines a 1.5
percent COLA for 21-22 and a 2.31 percent adjustment for 20-21 that was not funded in last year's
budget. When adjusting for declining Average Daily Attendance, the 3.84 percent COLA increases
ongoing LCFF funding by $2 billion.