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  • Legislature rejects ‘draconian’ cuts to UC and CSU, keeps TK-12 funding intact

    Legislature rejects ‘draconian’ cuts to UC and CSU, keeps TK-12 funding intact


    Students study in the main lobby of Storer Hall at the University of California, Davis.

    Credit: Gregory Urquiaga / UC Davis

    Top Takeaways
    • The Legislature has until June 15 to present their budget bill to the governor.
    • The proposal received praise from speakers grateful to see more funding for higher education.
    • Student teachers would receive $600 million in new funding in legislators’ plan.

    The Legislature is challenging Gov. Gavin Newsom’s proposed funding cuts to higher education for next year, while largely leaving intact the relatively more generous TK-12 spending the governor called for last month.

    “In many ways, it’s a tale of two budgets,” said Sen. John Laird, D-Santa Cruz, chair of the education subcommittee, who characterized Newsom’s higher-ed cuts as “draconian.”

    In 2025-26, schools and community colleges will receive a record $118.9 billion under Proposition 98, the state formula that determines the minimum portion of the state’s General Fund that must be spent on schools and community colleges. Laird credits the law for “protecting schools from the hard decisions of what is happening to the other side of the ledger with higher education.”

    Legislators would nix Newsom’s proposal to cut next year’s funding to the University of California and California State University by 3% and instead restore that money as part of a joint agreement of the Assembly and Senate. 

    The Assembly and the Senate published their version of a spending plan for education on Monday. The Legislature has until June 15 to present their budget bill to the governor, who then has until June 27 to sign, veto, or line-item veto the bill.

    Higher education

    The latest version of the 2025-26 budget may provide some relief to the state’s college students and public universities, who in January were told by Newsom to expect an 8% ongoing cut, a figure he revised down to 3% in May. Uncertainty regarding federal funding for higher education has compounded budget anxieties in California, as the Trump administration proposes reductions to programs like the Pell Grant and TRIO.

    “I think many of you recognize that we’re facing some pretty devastating budget challenges this year,” said Sen. Sasha Renée Pérez, D-Pasadena, at a budget subcommittee hearing on June 10. “It has been incredibly, incredibly tough, and we are continuing to face ongoing challenges with potential cuts coming from the federal administration that will impact our higher education systems, and so we are going to be having ongoing conversations about the budget.”

    While the Legislature’s take on the budget may seem more generous, it is not without asterisks. By forgoing the 3% ongoing cut, the Assembly-Senate recommendations would reinstate $130 million to the 10-campus UC system and $144 million to CSU’s 23 campuses. However, the Legislature would defer those payments until July 2026, giving the universities permission to seek short-term loans from the General Fund to tide themselves over. 

    Additionally, lawmakers parted ways with the governor on a plan to defer a 5% increase in base funding from 2025-26 to 2026-27. The legislative proposal instead splits the deferral, offering the universities a 2% ongoing increase in 2026-27 and the remaining 3% in 2028-29.

    The legislative proposal was met with praise from many speakers attending the subcommittee hearing. Representatives from the California State University Employees Union, which represents non-faculty and student assistants, the Community College League of California and the Cal State Student Association all spoke in support of the Legislature’s version. 

    Eric Paredes, the legislative director of the California Faculty Association, which represents professors at CSU, thanked the Legislature for restoring funding to the university system. “We know it’s been a difficult budget year, and just are really appreciative of the Legislature’s ongoing commitment to higher education,” he said.

    The legislative proposal also alters a plan to defer nearly $532 million in community college apportionment funding from 2025-26 to 2026-27, instead offering a smaller deferral of $378 million. 

    To pare back the 2025-26 deferral, the Legislature’s plan would reappropriate $135 million from the 2024-25 part-time faculty insurance program. A representative of the Faculty Association of California Community Colleges, speaking at the budget subcommittee hearing opposed that move, calling the funds for the part-time health care pool “necessary.”

    The Legislature is also turning down a Newsom proposal to provide $25 million in one-time Prop. 98 dollars to the Career Passports initiative, which would help Californians compile digital portfolios summarizing the skills they’ve built through work and school.

    The Legislature’s plan, in addition, calls for a variety of one-time Prop. 98 funding for community colleges, including $100 million to support college enrollment growth in 2024-25, $44 million to fund part-time faculty office hours and $20 million for emergency financial aid for students.

    For the state’s public universities, the budget bill would set in-state enrollment targets, asking UC and CSU to enroll 1,510 and 7,152 more California undergraduates, respectively, in 2025-26. 

    The current draft of the budget bill would also require CSU campuses that have experienced “sustained enrollment declines” to submit turnaround plans to the chancellor’s office by the end of 2025, outlining how they will increase enrollment and any cost-saving strategies they have planned. The chancellor’s office, in turn, will summarize those plans in a report for the Legislature by March 2026.

    Finally, the Legislature’s proposal also includes a sweetener for the state’s financial aid budget by restoring funding for the Middle Class Scholarship program. It provides grant aid to more than 300,000 recipients and would receive $405 million in one-time funding in 2025-26 and $513 million ongoing.

    TK-12 spending

    A stipend for aspiring teachers is the single largest difference in spending between the governor and the Legislature’s version of the TK-12 budget for next year. California would go all-in on paying student teachers working on their credentials if the Legislature can persuade Newsom to build in the $600 million expense in the 2025-26 state budget. Newsom is proposing $100 million for what would be a new program.

    To make room for this and other changes, the Legislature would cut a one-time Student Support and Discretionary Block Grant that Newsom is proposing, from $1.7 billion to $500 million. 

    Brianna Bruns, a representative with the California County Superintendents, expressed concern, noting that this is an important funding source for “core educational services” in light of the expiration of one-time pandemic-related federal funds.

    Lawmakers are recommending two other significant changes that reflect their worry that state revenues may fall short of projections amid an uncertain economy. 

    It would put $650 million into the Prop. 98 rainy day fund that would otherwise be depleted, under the expectation that it will be needed next year. And in a proposal that districts and community colleges may welcome, they would substantially cut back on late payments from the state, called deferrals, under Newsom’s May budget revision. 

    The governor is proposing to push back $1.8 billion that the state normally would fund in June 2026 by a few weeks to July 2026, the first month of the new fiscal year; the Legislature would reduce the deferral to $846 million. As a debt that must be repaid to make districts fiscally sound, the Legislature would pay most of it back in 2026-27 and the rest in 2027-28.

    Advocates for paying teachers at the daily rate of a substitute teacher while they are student teaching say it is critical to encourage more people to become teachers. During a one-year graduate program to earn a teaching credential, candidates are required to spend 600 hours in the classroom. Many candidates earn no income while accumulating between $20,000 and $40,000 in debt, based on the program they attend, according to an analysis of a bill proposing the stipends before the Legislature. 

    “California is facing a persistent teacher shortage that disproportionately affects our most vulnerable students,” said Assemblymember Al Muratsuchi, D-Torrance, the bill’s sponsor. “Many aspiring teachers struggle to complete their required student teaching hours due to financial hardship.”

    The proposed $600 million in the budget would cover two years of stipends for all teachers seeking a credential, according to an analysis of the bill. 

    The Legislature would support Newsom’s $200 million to support reading instruction for K-2 teachers and $100 million for training teachers in literacy and math instruction, although that would be $400 million less than Newsom favors. The Legislature also rejected $42 million to establish a math professional learning partnership and a statewide math network.





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  • Newsom again pledges to spare cuts for TK-12 and community colleges, but not for CSU and UC

    Newsom again pledges to spare cuts for TK-12 and community colleges, but not for CSU and UC


    Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento on May 10, 2024.

    Credit: AP Photo / Rich Pedroncelli

    Despite a further deterioration in state revenues, Gov. Gavin Newsom again pledged Friday to protect ongoing funding and the large-scale initiatives for TK-12 schools that he has set in motion.

    “I just don’t want to see education cuts,” Newsom said during a news conference on the revision to the proposed 2024-25 state budget he presented in January. “Right now, I want to see us preserve the progress we have made on community schools, on preschool, on after-school-for-all, summer school — all the work we’ve been doing.”

    Newsom’s comment during a two-hour session with reporters reflected the challenge of writing annual budgets subject to volatile revenue fluctuations dependent on the incomes of the top 1% of earners. Receipts from capital gains taxes that soared to $349 billion in 2021-22 dropped to $137 billion in 2023-24. The current fiscal year ends June 30.

    As a result of the projected shortfall, other state operations could face additional cuts. Newsom didn’t make the same promise he made for schools to higher education, leaving California State University system officials on edge. In a statement, CSU Chancellor Mildred Garcia said she was “deeply concerned” about a revised state budget that would grant no increase next year, then a 2% increase in 2025-26, instead of a 10% increase over two years as promised in January.   

    “As the institution that educates the evolving workforce of California, this budget places us in a position of making difficult decisions,” Garcia said.

    It was not clear whether the University of California would face similar cuts, although Newsom typically treats both systems similarly. UC officials would not comment on the issue. In a statement Friday, UC President Michael Drake said that the system is hoping to “finalize a budget that sustains the University’s research, public service, and education mission.”  

    The summary of revenue reductions and spending cuts Newsom released lacked the details that usually accompany a May budget revision; however, more information is expected by Tuesday, the deadline for statutory budget language. 

    Some TK-12 advocates expressed relief, nonetheless. 

    “Given the magnitude of the fiscal crisis, that the governor could put together a budget that largely protects K-12 is remarkable,” said education consultant Kevin Gordon, president of Capitol Advisors.

    Derick Lennox, senior director of governmental relations and legal affairs with the California County Superintendents, was more cautious. “We can appreciate the governor’s commitment to hold schools harmless to the extent he can, but so much will all depend on the details for Proposition 98 and what is available,” he said, referring to the portion of the general fund that determines funding for TK-12 schools and community colleges. 

    Newsom said general fund revenues were expected to decline an additional $7 billion for a total of $27.6 billion for the three-year period from 2022-23 through 2024-25. The total deficit would be nearly twice as big, but the Legislature has made a combination of cuts, savings, and deferred spending since January.

    The shortfall for TK-12 and community colleges, due to lower Proposition 98 funding, would be about $4.2 billion. Although details are scant, Newsom would make up for it mostly by emptying nearly all the remaining $9 billion rainy day fund for schools and community colleges.

    Newsom said the average TK-12 per-student funding for 2024-25 would be $17,502 — $151 per student less than proposed in January. Despite that, funding would include a 1% cost of living increase, a smidge higher than in January. 

    The May revision lists about $1 billion in cuts for early education through high school. Most of the programs are funded by the general fund, not Proposition 98. It would preserve ongoing funding for the expanded transitional kindergarten program for 4-year-olds and long-awaited pay raises for child care providers.

    Cuts would include:

    • $425 million to the Children and Youth Behavioral Health Initiative out of a $4 billion investment, which Newsom said would reflect directing more funding to wellness centers at school sites. Carl Pinkston of the Black Parallel School Board expressed concern. “In the aftermath of the pandemic, many students continue to display signs of trauma, adversely affecting their academic performance and overall well-being,” he said. The initiative “is a critical program that champions equity, aiming to improve behavioral health outcomes for children and youth.”  
    • Delayed funding for additional slots for state-funded child care. Instead of funding 146,000 as planned, the state will continue funding 119,000 new slots funded so far. “Delaying access to child care for the next two years to our youngest Californians is deeply troubling,” said Mary Ignatius, executive director of Parent Voices CA, an advocacy group. “Their childhoods do not pause. Their undiagnosed speech or other developmental delays will make it harder for them two years from now.” 
    • Elimination of $550 million in facilities funding for preschools, transitional kindergarten and full-day kindergarten programs. Newsom suggested funding could be included in a statewide school facilities bond. He said Friday that negotiations were continuing with legislative leaders for a bond on the statewide ballot in November.
    • A cut of $60.2 million to the Golden State Teacher Grant Program, which pays up to $20,000 to teacher candidates enrolled in credential programs who commit to working for years in priority schools. 
    • Elimination of $48 million in 2025-26 and $98 million in 2026-27 for increased payments for state preschools that serve additional students with disabilities.  
    • A cut of all but $100 million in ongoing funding for the Middle Class Scholarship Program, which previously received more than $600 million annually. In past years, more than 300,000 students across UC and CSU have received scholarships, which are available to students whose families earn up to $217,000. 

    Criticism of a key fix to the shortfall

    Newsom’s solution for minimizing cuts to schools and community colleges would rely on a controversial maneuver. He would fill in the biggest piece of the shortfall — $8 billion in an unanticipated drop in Proposition 98 revenue in 2022-23 — by treating it as an overpayment of the state’s funding obligation.  Since schools and community colleges have already spent the money, he’d fill in the gap by cutting the general fund — but not until 2028-29, when the state’s revenue picture presumably would have improved. Since Newsom announced the idea in January, the repayment obligation has grown to $8.8 billion.

    An accounting move of that magnitude hasn‘t been done before. The Legislative Analyst Office (LAO) has questioned the tactic, and so did the California School Boards Association in a statement Friday in which it implied it might sue.

    The association’s logic reflects the complexity of the Proposition 98 formula for determining funding. The school boards association asserts that the 2022-23 funding level was not a voluntary overpayment but rather a constitutional obligation on which subsequent years’ levels of funding are set.

    “This accounting gimmick would lower the baseline for calculating education funding in subsequent years, subjecting California schools to lower revenue for the foreseeable future,” school boards association President Albert Gonzalez said. “This sets a terrible precedent that potentially destabilizes education funding and undermines the voters’ intent when they passed Proposition 98 more than 35 years ago.”

    The California Department of Finance has insisted that the solution is legal. However, on Friday, Newsom did acknowledge that Proposition 98 is complicated.

    “You need not only a Ph.D., but a physics degree, an engineering degree and everything else to unpack its complexities,” he said.





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  • California TK-12 enrollment ticks down, while number of homeless and poor students rises

    California TK-12 enrollment ticks down, while number of homeless and poor students rises


    Zaidee Stavely/EdSource

    Top Takeaways
    • The 0.54% decline was steeper than last year but not as dramatic as the plunge at the peak of the pandemic.
    • The drop in enrollment was somewhat offset by the expansion of transitional kindergarten.
    • The number of students identified as homeless jumped 9.3% from last year.

    New state data released Wednesday shows that California’s TK-12 enrollment has continued its steady post-pandemic decline. At the same time, the number of poor and homeless students has been increasing.

    For the 2024-25 school year, enrollment statewide declined by 31,469 students or 0.54%, compared to last year. California now has 5.8 million students in grades TK-12 compared to 6.2 million students in 2004-05. The new data from the state is based on enrollment counts for the first Wednesday in October, known as Census Day.

    This year’s decline is a little steeper than last year’s, which was 0.25%, but relatively flat compared to the enrollment plunge at the peak of the pandemic.

    “The overall slowing enrollment decline is encouraging and reflects the hard work of our LEAs across the state,” said state schools Superintendent Tony Thurmond in a statement.

    The drop in enrollment was somewhat offset by the state’s gradual rollout of transitional kindergarten. More students were eligible for the new grade than last year, and the numbers reflect that. An additional 26,079 students enrolled in transitional kindergarten — a 17.2% increase — while most other grade levels saw dips in enrollment.

    The new state data also reflect an increasing number of students who are experiencing economic hardship. An additional 32,179 students now qualify as socioeconomically disadvantaged, a 0.9% increase. This data show that 230,443 students were identified as homeless — a 9.3% increase from the last school year.

    The number of students identified as English learners decreased by 6.1%. This is largely in response to Assembly Bill 2268, which exempted transitional kindergarten students from taking the English Language Proficiency Assessment for California (ELPAC).

    Previously, schools tested transitional kindergarten students with a screener meant for kindergarten students, which was not appropriate for younger students and was therefore unreliable, according to Carolyne Crolotte, director of policy at Early Edge California, a nonprofit organization that advocates for early education. The state is in the process of creating a new screener, but in the interim, almost no English learners are being identified in this grade.

    State officials attribute much of the enrollment decline to demographic factors, such as a declining birth rate. 

    Enrollment saw its greatest decline in regions of the state with higher housing prices, notably Los Angeles County and Orange County. There is growth in more affordable areas of the state, such as the San Joaquin Valley and Northern California, including the Sacramento area.

    Enrollment in charter schools has steadily increased at the same time enrollment in traditional public school is decreasing. This year an additional 50,000 students attended a charter. Now 12.5% of students in California are enrolled in charter schools, which is up from 8.7% ten years ago.

    The California Department of Education characterized transitional kindergarten numbers, which went up 17.2%, as a “boom.” A release from the department stated that 85% of school districts are offering transitional kindergarten at all school sites. It also said that transitional kindergarten is creating more spaces in the state preschool for 3-year-olds. 

    However, the enrollment numbers for transitional kindergarten are well below early estimates advanced by the Learning Policy Institute in 2022 which had estimated that 60% to 75% of eligible students would enroll in transitional kindergarten. The just released numbers show closer to about 40% of eligible students are opting in for transitional kindergarten, which according to Bruce Fuller, professor of education and public policy at UC Berkeley, is “not exactly universal preschool.” 

    The Governor’s recently released budget revision noted that lower daily attendance prompted him to reduce funds aimed at transitional kindergarten by $300 million. The state plans to lower the student to adult ratio in these classrooms from 12:1 to 10:1 next year, but will need less money to do so because of lower enrollment.

    Transitional kindergarten has been gradually expanding over a five-year period to include all 4-year-olds. This school year, all students who turn five years old between Sept. 2 and Jun. 2 were eligible. The expansion to all 4-year-olds will be complete in the 2025-26 school year.

    The expansion of transitional kindergarten doesn’t seem to be reaching more eligible four-year-olds than the previous system of private preschools, state preschools and Head Start, Fuller said. He notes that enrollment in those programs has been in decline at the same time that transitional kindergarten has been growing.

    Crolotte praised the state for its expansion of transitional kindergarten but said that some families may not know that their children are eligible for the program.

    “I think more work needs to be done about communication to families and knowing that this is available to them,” Crolotte said.





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