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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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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.

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