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Analysis of Governor's January 2021-22 Budget Proposal

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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ACSA_Jan 2021-22_Gov Budget Proposal Analysis_real.docx | Page 2 of 4 IN-PERSON INSTRUCTION GRANTS: The Governor's budget proposes allocating $2 billion to create the In-Person Instruction Grant program. The intended goal of the program is to incentivize school reopening, particularly in order to offer in-person instruction to the state's youngest children and students from subgroups who have been disproportionately affected by the pandemic. As part of the application, local education agencies would have to submit a COVID-19 School Safety Plan, and ratified certificated and classified collective bargaining agreements to their county offices of education and local public health departments. The Safety Plan and ratified bargaining agreements must include details for how LEAs plan to meet new COVID-19 testing requirements. Depending on local case rates, testing could be as frequent as weekly for all students and staff. Schools that are currently closed are not able to open until local positive case rates are below 28 per 100,000 residents for five consecutive days. Priority for in-person instruction would be for students in grades TK-2 and unduplicated pupil groups, with a phase-in of all students in grades TK-6. A complete summary of the In-Person Instruction Grant program can be found here. ONE-TIME FUNDS TO ADDRESS LEARNING LOSS: The Governor proposes allocating $4.6 billion in one-time Prop. 98 funds to address learning loss caused by the pandemic. This proposal will require early action by the legislature so that LEAs have time to design targeted interventions that focus on students most adversely affected by the pandemic. DEFERRALS: The Governor proposes paying off the full K-12 deferral in 2019-20 and $7.3 billion of the K-12 deferral in 2020-21. The deferral schedule for February to May 2021 will remain but are one- time and will be repaid on the existing schedule (August-November 2021). This leaves a $3.7 billion deferral for June 2021 which will be paid in July 2021 and remain as an ongoing deferral. ADA HOLD HARMLESS: The Governor's budget does not include an ADA hold harmless for 2021-22. The budget summary notes that current law allows LEAs experiencing enrollment declines the ability to utilize prior year figures. LOCAL RESERVE CAP TRIGGERED: The Governor's proposal includes nearly $3 billion in payments to the Public School System Stabilization Account (Prop. 98 reserve). This figure is well over the threshold needed to trigger a 10 percent cap on local district reserves. The cap would take effect in the 2022-23 year. K-12 CATEGORICAL PROGRAMS: The Governor proposes a 1.5 percent COLA for the various K-12 categorical programs, including the K-12 Strong Workforce Program, Career Technical Education Incentive Grant Program and Adult Education Block Grant. EDUCATOR RECRUITMENT AND RETENTION: The Governor proposes $225 million to improve the state's teacher pipeline, noting teacher shortages, which have worsened due to retirements and the pandemic. The funding proposal breaks down to: • $100 million to expand the Golden State Teacher Grant Program, which provides grants to students working toward a credential in special education who commit to teaching at a "priority school" in California for four years;

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