Today, June 12, 2023, the Legislature announced they reached an agreement on the 2023-24 State Budget, and a vote is expected to take place on Thursday. The budget bill is contained in both AB 101 and SB 101. A Senate summary of the legislative budget framework can be found here.

The Legislature’s version provides $311.7 billion in total spending, including $227 billion from the General Fund. It also helps close the budget gap by including $30.7 billion in solutions and contains $37.2 billion in total General Fund Reserves. This version rejects the proposed use of the Safety Net Reserve for purposes not intended for the reserve.

The Legislature’s version provides a $2.1 billion increase from the May Revision for schools and community colleges and provides $1 billion for temporary rate increases for childcare. Below are key highlights for Early Care and K-12 Education.

 

Approval – Governor’s Proposals

Changes – Governor’s

Proposals

 New – Legislature Proposals
2022-23 Budget increases to the LCFF.

Reduces the Arts, Music, and Instructional Materials Discretionary Block Grant by $200 million instead of the proposed $1.8 billion.

 

 Provides $10 million for the Diverse Education Leaders Pipeline Initiative.
8.22% COLA to the LCFF and categoricals.

Reduces the K-12 Learning Recovery Emergency Block Grant by $494.5 million instead of the proposed $2.5 billion.

 

 Increases reimbursement rates for childcare providers including those of State Preschool programs.
Fully funding Universal Meals in current and budget year.

Reduces the reliance of one-time funds to cover ongoing costs of LCFF.

 

Waives childcare fees through September 30, 2023, and provides permanent family fee reform, capping family fees at one percent of family income and waiving family fees for families with income under 75% of state median income, including State Preschool programs.

 
$80 million ongoing for COE’s operating county juvenile court and community schools. Includes $15 million for commercial dishwashers outside of the Kitchen Infrastructure and Training Funds.

$20 million for the Bilingual Teacher Professional Development Grants.

 

 

Next Steps

On Wednesday, June 14, 2023, the Senate Budget and Fiscal Review Committee and the Assembly Budget Committee will hold hearings to discuss their final budget. You can watch the Senate Budget hearing here at 9:00 AM. You can watch the Assembly Budget hearing here at 10:00 AM.

With a vote expected on Thursday, June 15th, the legislature will meet its constitutional deadline and the Governor will then have 12 days to act on the budget bill.

Trailer bills and budget amendments are anticipated to be released in the coming days and the Legislature is expected to release their summary of the final budget in mid/late June.