LAO
EdBudget Tables (May 2016)
Read the report at Legislative Analyst's Office ↗
EDBUDGET TABLES (MAY 2016)
Proposition 98 Overview
Tracking Changes in Estimates of Proposition 98 Minimum Guarantee………………………………2
Changes in General Fund Tax Revenue and Proposition 98 General Fund……………………………3
Changes in Proposition 98 Funding By Segment and Source………………………………………….4
2015-16 Proposition 98 Spending Changes……………………………………………………………5
2016-17 Proposition 98 Spending Changes……………………………………………………………6
Proposed Funding for Education Mandates Backlog…………………………………………………..7
Key Proposition 98 Information Underlying May Revision…………………………………………...8
Key Proposition 98 Information Underlying LAO Forecast…………………………………………...9
Comparing Administration’s and LAO’s Estimates of the Minimum Guarantee…………………….10
Comparing Proposition 98 Property Tax Revenue Estimates………………………………………...11
Year-Over-Year Growth in Proposition 98 Property Tax Revenue…………………………………..12
K-12 Education
2016-17 K-12 Proposition 98 Spending Changes…………………………………………………….13
K-12 Proposition 98 Funding Per Pupil………………………………………………………………14
Changes in LCFF Funding……………………………………………………………………………15
Summary of K-12 Education Recommendations……………………………………………………..16
Child Care and Preschool
Child Care and Preschool Budget……………………………………………………………………..17
2016-17 Child Care and Preschool Funding Changes………………………………………………...18
Child Care and Preschool Subsidized Slots…………………………………………………………...19
Summary of Early Education Block Grant Recommendations……………………………………….20
Higher Education
Higher Education General Fund Support……………………………………………………………..21
CCC Spending by Source…………………………………………………………………………..…22
2016-17 CCC Proposition 98 Changes………………………………………………………………..23
Community College Programs Funded by Proposition 98……………………………………………24
Summary of California Community Colleges Recommendations…………………………………....25
California Student Aid Commission Budget………………………………………………………….26
Cal Grant Spending…………………………………………………………………………………...27
Cal Grant Recipients…………………………………………………………………………………..28
1
Tracking Changes in Estimates of Proposition 98 Minimum Guaranteea
(In Millions)
June January May Change From Change From
2015 2016 2016 January 2016 June 2015
2014-15 $66,303 $66,690 $67,153 $463 $850
2015-16 68,409 69,175 69,050 -125 641
2016-17 — 71,585 71,874 288 3,465b
a
Refl ects budget act estimates for June 2015 and administration’s estimates for January 2016 and May 2016.
b Refl ects change from June 2015 estimate of 2015-16 minimum guarantee. Increase is 5.1 percent.
2
Changes in General Fund Tax Revenue and
Proposition 98 General Funda
(In Millions)
Governor’s May
Budget Revision Change
2014-15
General Fund tax revenue $111,975 $112,448 $474
Proposition 98 General Fund 49,554 50,029 475
2015-16
General Fund tax revenue $120,205 $118,516 -$1,688
Proposition 98 General Fund 49,992 49,773 -218
2016-17
General Fund tax revenue $124,154 $123,222 -$933
Proposition 98 General Fund 50,972 51,105 133
a
The Proposition 98 minimum guarantee is met using state General Fund and local property tax revenue.
“Proposition 98 General Fund” refers to the amount of the guarantee covered by state General Fund.
3
Changes in Proposition 98 Funding
By Segment and Source
(In Millions)
Governor’s May
Budget Revision Change
2014-15 Minimum Guarantee $66,690 $67,153 $463
By Segment:
Schools $59,330 $59,742 $412
Community colleges 7,281 7,331 51
Othera 80 80 —
By Fund Source:
General Fund $49,554 $50,029 $475
Local property tax 17,136 17,124 -12
2015-16 Minimum Guarantee $69,175 $69,050 -$125
By Segment:
Schools $61,096 $60,984 -$112
Community colleges 7,997 7,983 -14
Othera 82 82 —
By Fund Source:
General Fund $49,992 $49,773 -$218
Local property tax 19,183 19,276 93
2016-17 Minimum Guarantee $71,585 $71,874 $288
By Segment:
Schools $63,244 $63,496 $252
Community colleges 8,259 8,295 36
Othera 83 83 —
By Fund Source:
General Fund $50,972 $51,105 $133
Local property tax 20,613 20,769 156
a
Includes funding for instructional services provided by the State Special Schools, California Department
of Corrections and Rehabilitation, and Department of Developmental Services.
4
2015-16 Proposition 98 Spending Changes
(In Millions)
Governor’s May
Budget Revision Change
2015-16 Budget Act Spending $68,409 $68,409 —
Technical Adjustments
Make LCFF adjustments -$91 -$35 $56
Other 43 -61 -104
Subtotals (-$48) (-$96) (-$48)
Policy Changes
Pay down K-12 mandate backlog $681 $586 -$95
Pay down CCC mandate backlog 73 76 3
Fund CTE Incentive Grant program 60 — -60
Backfi ll CCC for lower than projected property tax revenuea — 39 39
Backfi ll special education for lower than projected property tax revenuea — 29 29
Provide CCC with technology infrastructure funding (one time) — 7 7
Subtotals ($814) ($737) (-$78)
Total Changes $766 $641 -$125
2015-16 Revised Spending $69,175 $69,050 -$125
a
If backfi ll amounts exceed actual property tax shortfalls, CCC Chancellor’s Offi ce directed to use excess funds for CCC mandate backlog. Excess funds for special education
would revert.
LCFF = Local Control Funding Formula and CTE = career technical education.
5
2016-17 Proposition 98 Spending Changes
(In Millions)
Governor’s Budget May Revision Change
2015-16 Revised Proposition 98 Spending $69,175 $69,050 -$125
Technical Adjustments
Remove prior-year one-time payments -$1,446 -$1,301 $145
Make other adjustments -115 -152 -36
Adjust categorical programs for changes in attendance -16 -21 -6
Make LCFF adjustments 101 175 74
Annualize funding for previously approved preschool slot increases 31 31 —
Subtotals (-$1,445) (-$1,268) ($177)
K-12 Education
Increase LCFF funding $2,825 $2,979 $154
Fund CTE Incentive Grant for Secondary Schools (year two of three)a 240 300 60
Provide COLA for select categorical programsb 23 — -23
Fund truancy and dropout prevention program 7 10 3
Fund High Speed Networkc 5 5 —
Revise estimate of energy-effi ciency funds 52 85 33
Support Exploratorium 4 4 —
Fund improvement of web-based tools for state accountability system 1 1 —
Remove augmentation for infants and toddlers with disabilities -30 -30 —
Fund COEs for implementation of new Early Education Block Grant — 10 10
Support Student Friendly Services — 2 2
Subtotals ($3,125) ($3,365) ($239)
California Community Colleges
Implement workforce recommendations of BOG task force $200 $200 —
Fund deferred maintenance and instructional equipment (one time) 255 189 -$66
Fund 2 percent enrollment growth 115 115 —
Provide apportionment increase (above growth and COLA) — 75 75
Make CTE Pathways Initiative ongoing 48 48 —
Augment Basic Skills Initiative 30 30 —
Fund Innovation Awards at community colleges (one time) 25 25 —
Revise estimate of energy-effi ciency funds 6 11 4
Increase funding for Institutional Effectiveness Initiative 10 10 —
Augment technology infrastructure funding — 5 5
Fund technical assistance to adult education consortia (one time) — 5 5
Fund development of “zero-textbook-cost” degree programs (one time) 5 5 —
Provide instructional materials for incarcerated adults — 3 3
Improve systemwide data security 3 3 —
Extend Full-Time Student Success Grant to Cal Grant C recipients — 2 2
Increase apprenticeship reimbursement rate 2 2 —
Provide COLAb 31 — -31
Subtotals ($730) ($728) (-$2)
Total Changes $2,410 $2,824 $414
2016-17 Proposed Spending $71,585 $71,874 $288
a
Governor’s budget includes $60 million in 2015-16 funding for this purpose.
b
COLA rate was estimated at 0.47 percent in January and fi nalized at zero in May.
c
Budget also includes $3.5 million in one-time funding for this purpose.
LCFF = Local Control Funding Formula; CTE = career technical education; COLA = cost-of-living adjustment; COE = county offi ce of education; and BOG = Board of Governors.
6
Proposed Funding for Education Mandates Backlog
(In Millions)
Governor’s Budget May Revision Change
K-12 Education
Pay down scored to:
2014-15 $339 $635 $296
2015-16 681 586 -95
Settle up 229 194 -35
Othera 32 — -32
Subtotals ($1,281) ($1,416) ($135)
California Community Colleges
Pay down scored to:
2014-15 $3 $29 $26
2015-16 73 76 3
Subtotals ($76) ($106) ($29)
Totals $1,357 $1,521 $164
a
Prior-year unspent funds.
7
Key Proposition 98 Information Underlying May Revision
(Dollars in Millions)
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Minimum Guarantee
General Fund $50,029 $49,773 $51,105 $52,416 $52,034 $53,301
Local property tax 17,124 19,276 20,769 22,050 23,322 24,639
Total Guarantees $67,153 $69,050 $71,874 $74,466 $75,356 $77,939
Inputs
General Fund taxesa $112,448 $118,516 $123,222 $127,585 $128,677 $133,178
K-12 average daily attendance 5,981,713 5,977,223 5,966,068 5,961,800 5,945,458 5,941,669
State civilian population 38,750,025 39,098,266 39,444,353 39,789,683 40,132,904 40,475,897
Growth Factors
Per capita personal income -0.2% 3.8% 5.4% 4.9% 3.9% 3.5%
Per capita General Fundb 10.4 5.0 3.6 3.1 0.5 3.1
K-12 average daily attendance -0.2 -0.1 -0.2 -0.1 -0.3 -0.1
State civilian population 0.9 0.9 0.9 0.9 0.9 0.9
Assessed property values 6.1 5.9 6.2 5.8 5.7 5.4
K-14 cost-of-living adjustment 0.9 1.0 — 1.1 2.4 2.7
Outcomes
Proposition 98 operative “test” 1 2 3 3 3 3
Spike protection effectc -$1,009 — — — — —
Test 3 supplemental payment — — $502 $387 $728 $279
Maintenance factor:
Amount created/paid (+/-) -5,679 -$379 746 884 1,797 —
Amount outstanding 514 155 908 1,837 3,700 3,827
PSSSA Deposit? — No No No No No
a
Refl ects General Fund revenue that affects the calculation of the minimum guarantee.
b
Refl ects per capita General Fund plus 0.5 percent (one of the Test 3 factors).
c
Due to a revenue spike in 2014-15, a portion of the increase in the 2014-15 minimum guarantee is backed out from the calculation of the minimum guarantee moving forward.
PSSSA = Public School System Stabilization Account.
8
Key Proposition 98 Information Underlying LAO Forecast
(Dollars in Millions)
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Minimum Guarantee
General Fund $50,235 $49,659 $50,973 $52,553 $52,835 $53,389
Local property tax 17,117 19,392 21,007 22,390 23,642 24,778
Total Guarantees $67,352 $69,051 $71,979 $74,943 $76,477 $78,167
Inputs
General Fund taxesa $112,658 $118,485 $123,393 $129,701 $132,327 $135,325
K-12 average daily attendance 5,981,713 5,972,805 5,956,678 5,939,701 5,913,566 5,894,938
State civilian population 38,750,025 39,098,266 39,440,742 39,758,017 40,063,426 40,364,205
Growth Factors
Per capita personal income -0.2% 3.8% 5.4% 4.4% 6.2% 5.4%
Per capita General Fundb 10.6 4.7 3.7 4.8 1.8 2.0
K-12 average daily attendance -0.2 -0.2 -0.3 -0.3 -0.4 -0.3
State civilian population 0.9 0.9 0.9 0.8 0.8 0.8
Assessed property values 6.1 5.9 6.6 5.9 5.7 5.3
K-14 cost-of-living adjustment 0.9 1.0 — 1.8 2.4 2.3
Outcomes
Proposition 98 operative “test” 1 2 3 2 3 3
Spike protection effectc -$1,078 — — — — —
Test 3 supplemental payment — — $540 — $558 $410
Maintenance factor:
Amount created/paid (+/-) -5,802 -$249 583 — 2,770 2,159
Amount outstanding 391 157 748 $779 3,593 5,933
PSSSA Deposit? — No No No No No
a
Refl ects General Fund revenue that affects the calculation of the minimum guarantee.
b
Refl ects per capita General Fund plus 0.5 percent (one of the Test 3 factors).
c
Due to a revenue spike in 2014-15, a portion of the increase in the 2014-15 minimum guarantee is backed out from the calculation of the minimum guarantee moving forward.
PSSSA = Public School System Stabilization Account.
9
Comparing Administration’s and LAO’s Estimates of the Minimum Guarantee
(In Millions)
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
May Revision
General Fund $50,029 $49,773 $51,105 $52,416 $52,034 $53,301
Local property tax 17,124 19,276 20,769 22,050 23,322 24,639
Total Guarantees $67,153 $69,050 $71,874 $74,466 $75,356 $77,939
LAO Forecast
General Fund $50,235 $49,659 $50,973 $52,553 $52,835 $53,389
Local property tax 17,117 19,392 21,007 22,390 23,642 24,778
Total Guarantees $67,352 $69,051 $71,979 $74,943 $76,477 $78,167
Difference
General Fund $206 -$115 -$132 $137 $800 $88
Local property tax revenue -7 115 237 340 320 139
Total Differences $199 $1 $106 $477 $1,121 $227
10
Comparing Proposition 98 Property Tax Revenue Estimates
(In Millions)
Governor’s Budget to May Revision
2015-16 2016-17
Governor’s May Governor’s May
Budget Revision Change Budget Revision Change
Total local property tax revenue $19,183 $19,276 $93 $20,613 $20,769 $156
Base property tax revenue 18,306 18,221 -85 19,391 19,385 -5
Ongoing RDA revenue shift 1,008 1,167 159 1,045 1,240 196
ERAF 448 503 55 859 862 3
Sales of RDA assets 116 126 10 10 11 1
Excess tax revenue -695 -740 -45 -690 -729 -39
May Revision to LAO May Outlook
2015-16 2016-17
May May
Revision May LAO Change Revision May LAO Change
Total local property tax revenue $19,276 $19,392 $115 $20,769 $21,007 $237
Base property tax revenue 18,221 18,201 -19 19,385 19,426 41
Ongoing RDA revenue shift 1,167 1,212 45 1,240 1,297 57
ERAF 503 616 113 862 1,106 245
Sales of RDA assets 126 158 33 11 52 40
Excess tax revenue -740 -795 -56 -729 -874 -145
RDA = redevelopment agency and ERAF = Educational Revenue Augmentation Fund.
11
Year-Over-Year Growth in Proposition 98 Property Tax Revenue
(Dollars in Millions)
2015-16 2016-17 Change Percent
May Revision
Total local property tax revenue $19,276 $20,769 $1,493 8%
Base property tax revenue 18,221 19,385 1,164 6
Ongoing RDA revenue shift 1,167 1,240 73 6
ERAF 503 862 359 71
Sales of RDA assets 126 11 -114 -91
Excess tax revenue -740 -729 10 -1
LAO May Outlook
Total local property tax revenue $19,392 $21,007 $1,615 8%
Base property tax revenue 18,201 19,426 1,224 7
Ongoing RDA revenue shift 1,212 1,297 86 7
ERAF 616 1,106 490 80
Sales of RDA assets 158 52 -107 -67
Excess tax revenue -795 -874 -79 10
RDA = redevelopment agency and ERAF = Educational Revenue Augmentation Fund.
12
2016-17 K-12 Proposition 98 Spending Changes
(In Millions)
Governor’s May
Budget Revision Change
2015-16 Revised Spending $61,178 $61,066 -$112
Technical Adjustments -$977 -$852 $125
Policy Proposals
Increase LCFF funding $2,825 $2,979 $154
Fund CTE Incentive Grant for Secondary Schools 240a 300 60
Revise estimate of energy-effi ciency funds 52 85 33
Fund truancy and dropout prevention program 7 10 3
Fund COEs for implementation of new Early Education Block Grant — 10 10
Fund High Speed Network 5b 5b —
Support Exploratorium 4 4 —
Fund improvement of web-based tools for state accountability system 1 1 —
Support Student Friendly Services —d 2 2
Provide COLA for select categorical programsc 23 — -23
Remove augmentation for infants and toddlers with disabilities -30 -30 —
Subtotals ($3,125) ($3,365) ($239)
Total Changes $2,148 $2,513 $364
2016-17 Proposed Spending $63,326 $63,579 $253
a
Also included $60 million in 2015-16 funding for this purpose.
b
Also includes $3.5 million in one-time funding for this purpose.
c
COLA rate was estimated at 0.47 percent in January, fi nalized at zero in May.
d
Governor’s budget proposed $1 million in prior-year funds.
LCFF = Local Control Funding Formula; CTE = Career Technical Education; COE = county offi ce of education and COLA = cost-of-living
adjustment.
13
K-12 Proposition 98 Funding Per Pupil
Governor’s May
Budget Revision Change
2014-15 $9,933 $10,001 $68
2015-16 10,237 10,217 -20
2016-17 10,605 10,657 52
Year-to-Year Changea
Amount $369 $440 $72
Percent 3.6% 4.3% 0.7%
a
Refl ects change from 2015-16 to 2016-17.
14
Changes in LCFF Funding
(Dollars in Millions)
2016-17
2015-16 Year-to-Year
Revised Governor’s Budget May Revision Change Changea
Base fundingb $46,433 $52,585 $52,580 -$5 $6,147
Gap funding 6,171 2,889 3,053 163 -3,118
Total Funding $52,604 $55,475 $55,633 $158 $3,029
Target $58,266 $58,473 $58,158 -$315 -$108
Gap closure 52.1% 49.1% 54.7% 5.6% 3%
Percent of target level funded 90.3% 94.9% 95.7% 0.8% 5%
a
Refl ects change from the 2015-16 revised level to the 2016-17 May Revision level.
b
Base funding refl ects total prior-year funding adjusted for changes in student attendance.
LCFF = Local Control Funding Formula.
15
Summary of K-12 Education Recommendations
Program May Revision Proposal LAO Recommendation
LCFF funding for Increase by $154 million. Adopt. Accelerates LCFF implementation.
school districts
K-12 mandates backlog Increase by $135 million. Modify. Adopt funding level but combine with
strategic plan to pay off remainder of backlog.
School Facility Emergency Provide $100 million (one time) Reject. New program redundant with state’s
Repair Revolving Loan for new program. existing Facility Hardship Grant Program.
LCFF funding for COEs Increase by $16.5 million Modify. Change one of the COE LCFF formulas
($5.5 million each 2014-15, to ensure funding remains connected with the
2015-16, and 2016-17). cost of expected COE services.
SACS replacement project Provide $3 million. (Replaces Reject. Direct CDE to work with CDT to progress
$7.2 million in combined non- through initial stages of state review process.
Proposition 98 and federal Ask agencies to report progress in summer.
funds.) Signal intent to fund next year once planning
phases of project complete.
Dropout and truancy Increase by $2.6 million. Modify. Estimate of available Proposition 47
prevention grants funds still too low. Allocate funds to schools
(Proposition 47) with the highest concentration of at-risk youth.
Provide programmatic fl exibility.
California Center on Provide $2.5 million (one time) Modify. Adopt funding level. Require efforts be
Teaching Careers for teacher recruitment. focused on longstanding teacher shortage areas.
Strengthen reporting requirements.
College planning website Increase by $1 million (for a Modify. Approve $750,000 for public side of site.
total of $2 million). Make all Reject $1.25 million for fee-for-service side of
$2 million ongoing. site.
School energy-effi ciency Increase by $33 million. Adopt. Increase for projects consistent with
projects (Proposition 39) revised Proposition 39 revenue estimate.
Integrated Teacher Provide $10 million non- Reject. Barriers to integrated programs unlikely
Preparation Programs Proposition 98 General Fund for to be overcome by one-time grants.
one-time incentive grants.
LCFF = Local Control Funding Formula; COE = county offi ce of education; SACS = Standardized Account Code Structure;
CDE = California Department of Education; and CDT = California Department of Technology.
16
Child Care and Preschool Budget
(In Millions)
2016-17
Year-Over-Year
2014-15 2015-16 Governor’s May Change at
Actual Budget Acta Budget Revision Change May Revision
Expenditures
CalWORKs Child Care
Stage 1 $311 $410 $394 $394 —b -$16
Stage 2c 364 414 422 421 -$1 7
Stage 3 223 278 316 274 -42 -5
Subtotals ($899) ($1,103) ($1,132) ($1,089) (-$43) (-$14)
Non-CalWORKs Child Care
General Child Cared $531 $450 $450 $448 -$2 -$2
Alternative Payment 182 251 255 254 -1 3
Migrant 28 29 29 29 —b —b
Care for Children With Severe Disabilities 2 2 2 2 —b —b
Infant and Toddler QRIS Grant (one-time) — 24 — — — -24
Subtotals ($742) ($756) ($736) ($733) (-$3) (-$23)
Preschool Programse
State Preschool $604 $835 — $873 $873 $39
Transitional Kindergarten 604f 686f — 726 726 40
Preschool QRIS Grant 50 50 — 50 50 —
Early Education Block Grant — — $1,654g — -1,654 —
Early Education Block Grant — — — 10h 10 10
Implementation for COEs
Subtotals ($1,258) ($1,571) ($1,654) ($1,659) ($6) ($88)
Support Programs $73 $76 $79 $88 $9 $12
Totals $2,972 $3,506 $3,600 $3,569 -$31 $63
Funding
Non-Proposition 98 General Fund $790 $977 $998 $905 -$93 -$72
Proposition 98 General Fund 1,258 1,571 1,654 1,659 6 88
Federal CCDF 570 573 583 639 56 66
Federal TANF $353 385 365 365 —b -20
a
Refl ects Department of Social Services’ revised Stage 1 estimates for cost of care and caseload. Refl ects budget act appropriation for all other programs.
b
Less than $500,000.
c
Does not include $9.2 million provided to community colleges for certain child care services.
d
In 2014-15, includes funding for all State Preschool wrap slots. Beginning in 2015-16, includes funding for State Preschool wrap slots provided only by non-LEAs.
e
Some CalWORKs and non-CalWORKs child care providers use their funding to offer preschool.
f
LAO estimate based on average daily attendance in Transitional Kindergarten, as reported by CDE.
g
Consists of $878 million shifted from State Preschool, $726 million shifted from Transitional Kindergarten, and $50 million shifted from the Preschool QRIS Grant.
h
May Revision also provides COEs $10 million in one-time Proposition 98 funds scored to 2014-15 for Early Education Block Grant implementation activities.
QRIS = Quality Rating and Improvement System; CCDF = Child Care and Development Fund; TANF = Temporary Assistance for Needy Families; COEs = County Offi ces of
Education; CDE = California Department of Education; and LEA = local education agency.
17
2016-17 Child Care and Preschool Funding Changes
(In Millions)
Governor’s May
Change Budget Revision Change
Preschool Programs
Shifts funds to/from new Early Education Block Grant (EEBG)a $1,654 -$1,654 -$3,307
Shifts funds from/to State Preschool, Transitional Kindergarten, and -1,654 1,654 3,307
Preschool Quality Rating and Improvement System (QRIS)a
Provides ongoing funds to county offi ces of education to implement EEBG — 10 10
Adjusts Transitional Kindergarten for increases in Local Control Funding Formula 40 40 —
Makes various adjustments to State Preschoolb 40 36 -4
Subtotals ($80) ($85) ($6)
Child Care Programs
Makes CalWORKs caseload and average cost of care adjustments $18 -$25 -$43
Annualizes funding for Regional Market Rate ceiling increase initiated in 2015-16 9 9 —
Increases funding for quality activities with additional federal funds 3 12 9
Annualizes funding for 5 percent license-exempt rate increase initiated in 2015-16 5 5 —
Adjusts non-CalWORKs child care programs for statutory growth and COLA 4 1 -4
Removes one-time Infant and Toddler QRIS grant funds -24 -24 —
Subtotals ($15) (-$23) (-$38)
Totalsc $95 $63 -$31
a
The May Revision postpones shifting State Preschool and Transitional Kindergarten funds into the Early Education Block Grant until 2017-18.
b
Annualizes slots initiated in 2015-16 and funds statutory growth and cost-of-living adjustment (COLA).
c
Governor’s budget and May Revision each include technical adjustments of less than $500,000.
18
Child Care and Preschool Subsidized Slots
Average Monthly Full-Day Slots, Except for Part Day State Preschool
2016-17
Year-Over-Year
2014-15 2015-16 Governor’s May Change at
Reviseda Budget Actb Budget Revision Change May Revision
CalWORKs Child Care
Stage 1 37,442 44,154 42,995 42,995 — -1,159
Stage 2c 51,098 50,971 49,777 51,083 1,306 112
Stage 3 33,427 35,845 36,335 34,770 -1,565 -1,075
Subtotals (121,967) (130,970) (129,107) (128,848) (-259) (-2,122)
Non-CalWORKs Programs
General Child Cared 27,359 28,738 42,134 29,063 -13,071 325
Alternative Payment 25,079 32,852 29,344 32,267 2,923 -585
Migrant 3,049 3,060 3,064 3,064 — 4
Care for Children with Severe 169 105 98 104 6 -1
Disabilities
Subtotals (55,656) (64,755) (74,640) (64,498) (-10,142) (-257)
Preschool Programs
State Preschool—part day 96,087 98,956 — 108,203 108,203 9,247
State Preschool—full day 50,989 58,504 — 57,644 57,644 -860
Transitional Kindergarten 83,321 83,321e — 85,500 85,500 2,179
Early Education Block Grant — — 251,409f — -251,409 —
Subtotals (230,397) (240,781) (251,409) (251,347) (-62) (10,566)
Totals 408,020 436,506 455,156 444,693 -10,463 8,187
a
Reflects actuals for all stages of CalWORKs, DOF estimates for Migrant child care and Care for Children with Severe Disabilities, CDE estimates for Transitional Kindergarten,
and LAO estimates for all other programs.
b
Reflects DSS estimates for CalWORKs Stage 1; DOF estimates for CalWORKs Stage 2 and 3, Migrant child care, and Care for Children With Severe Disabilities; CDE estimates
for Transitional Kindergarten; and LAO estimates for all other programs.
c
Does not include certain community college child care slots (1,300 to 1,800 slots annually).
d State Preschool wrap slots for non-LEAs (funded by General Child Care) are included in State Preschool—full day line in all cases except 2016-17 Governor’s Budget.
e
Assumes that participation in Transitional Kindergarten remains flat in 2015-16.
f
Reflects DOF estimate of number of slots that otherwise would have been funded in State Preschool (165,909) and Transitional Kindergarten (85,500).
19
Summary of Early Education Block Grant Recommendations
Program Component May Revision Proposal LAO Recommendation
Funding for providers during Provide funding to school districts based on 2016-17 Modify. Include one-year hold harmless
initial years of implementation State Preschool and Transitional Kindergarten provision for districts, then gradually
funding. align funding based on the number of
Provide funding to COEs based on 2016-17 State low-income and at-risk children in each
Preschool funding. district.
Include three-year hold harmless for school districts Decrease non-LEA and COE funding
and COEs. over fi ve years and reallocate funding
Redirect funding from non-LEA providers to school to districts within each county based on
districts in the area. unmet need.
Future funding allocations Specify future funding would be allocated based Adopt.
on prior-year funding levels and determination of
unmet need.
Prioritization of children Require districts to prioritize funding for low-income Adopt.
and at-risk youth.
Defi nition of low income Children who qualify for free or reduced-price meals Modify. Defi ne children as low income only
or state-subsidized child care. if they qualify for free or reduced-price
meals.
Defi nition of at risk Children who are homeless, at risk of abuse or Adopt.
neglect, foster youth, children with disabilities that
affect their learning, and English learners.
Attendance expectations Require districts to serve at least as many children Modify. Over the long run, adjust
as they served in 2016-17, adjusted for changes in attendance expectations to serve as
K-3 attendance. many priority children as possible given
available funding.
Program duration Require programs to operate for a minimum of three Adopt.
hours per day and 180 days per year.
Program standards Require programs to meet QRIS Tier 4 standards. Modify. Phase in QRIS standards and
rating process over several years.
Require independent party evaluate
COE-operated programs.
New COE responsibilities Require COEs to coordinate regional planning, Modify. Require COEs (and CDE) to
help school districts implement new programs, provide technical assistance under
and provide ongoing technical assistance and specifi ed conditions.
professional development opportunities to school
districts.
New COE funding Provide $20 million ($10 million one time, $10 million Modify. Provide $10 million one-time
ongoing) for additional responsibilities. funding. Make decision on ongoing
funding amount in 2017-18 budget.
QRIS funding Give COEs fi rst priority for $50 million in preschool Adopt.
QRIS block grant funds.
COE = county offi ce of education; LEA = local educational agency; QRIS = Quality Rating and Improvement System; and CDE = California Department of Education.
20
Higher Education General Fund Supporta
(Dollars in Millions)
Year-to-Year Change
2015-16 2016-17 at May Revision
Governor’s May Governor’s May
Budget Revision Change Budget Revision Change Amount Percent
CCC $5,813 $5,860 $47 $5,946 $6,034 $88 $174 3%
CSU 3,297 3,297 — 3,484 3,510 26 213 6
UC 3,257 3,259 2 3,467 3,471 4 212 6
CSACb 2,085 1,998 -86 2,254 2,152 -102 153 8
CIRM 369 369 — 274 274 — -95 -26
Hastings 12 12 — 15 15 — 3 27
Awards for Innovation — — — 25 25 — 25 N/A
Totals $14,833 $14,796 -$38 $15,465 $15,481 $16 $686 5%
a
Includes General Fund support for retirement, debt service, and deferred maintenance paid from outside higher education agencies’ budgets. Excludes state cost changes in
2016-17 for agencies participating in the California Public Employees’ Retirement System, as these costs have not yet been distributed across agencies’ budgets. For Hastings
and CIRM, fi gures do not refl ect May adjustments to general obligation bond debt service.
b
Includes Temporary Assistance for Needy Families support that directly offsets General Fund costs.
CSAC = California Student Aid Commission and CIRM = California Institute for Regenerative Medicine.
21
CCC Spending by Source
(In Millions)
Governor’s May
Budget Revision Change
2014-15 Minimum Guarantee
General Fund $4,979 $5,025 $46
Local property tax 2,302 2,306 5
Totals $7,281 $7,331 $51
2015-16 Minimum Guarantee
General Fund $5,373 $5,422 $48
Local property tax 2,624 2,562 -62
Totals $7,997 $7,983 -$14
2016-17 Minimum Guarantee
General Fund $5,447 $5,535 $88
Local property tax 2,812 2,760 -52
Totals $8,259 $8,295 $36
22
2016-17 CCC Proposition 98 Changes
(In Millions)
Governor’s May
Budget Revision Change
2015-16 Revised Spending $7,997 $7,983 -$14
Technical Adjustments -$468 -$416 $52
Policy Proposals
Implement workforce recommendations of BOG task force $200 $200 —
Fund deferred maintenance and instructional equipment (one time)a 255 189 -$66
Fund 2 percent enrollment growth 115 115 —
Provide apportionment increase (above growth and COLA) — 75 75
Make CTE Pathways Initiative ongoing 48 48 —
Augment Basic Skills Initiative 30 30 —
Fund Innovation Awards at community colleges (one time) 25 25 —
Revise estimate of energy-effi ciency funds 6 11 4
Increase funding for Institutional Effectiveness Initiative 10 10 —
Augment technology infrastructure funding — 5 5
Fund technical assistance to adult education consortia (one-time) — 5 5
Fund development of “zero-textbook-cost” degree programs (one time) 5 5 —
Provide instructional materials for incarcerated adults — 3 3
Improve systemwide data security 3 3 —
Extend Full-Time Student Success Grant to Cal Grant C recipients — 2 2
Increase apprenticeship reimbursement rate 2 2 —
Augment funding for systemwide Academic Senateb — — —
Provide COLAc 31 — -31
Subtotals ($730) ($728) (-$2)
Total Changes $262 $311 $50
2016-17 Proposed Spending $8,259 $8,295 $36
a
Governor’s budget provided an additional $28 million in Proposition 98 settle up and $6.4 million in unspent Proposition 98 prior-year funds for this purpose. The May Revision
provides $24 million in settle up and $6.4 million in unspent prior-year funds.
b
Provides $300,000.
c
COLA rate was estimated at 0.47 percent in January, fi nalized at zero in May.
BOG = Board of Governors; COLA = cost-of-living adjustment; and CTE = Career Technical Education.
23
Community College Programs Funded by Proposition 98
(In Millions)
2015-16 2016-17
Gover-
nor’s May Governor’s May
Budget Revision Change Budget Revision Change
Apportionments
General Fund $3,417 $3,455 $38 $3,209 $3,346 $137
Local property tax 2,624 2,562 -62 2,812 2,760 -52
Subtotals ($6,041) ($6,017) (-$24) ($6,020) ($6,106) ($86)
Categorical Programs and Other Appropriations
Adult Education Block Grant $500 $500 — $500 $505 $5
Student Success and Support Program 299 299 — 299 299 —
Physical plant and instructional support (one time) 100 100 — 255 189 -66a
Economic and Workforce Development 23 23 — 223 223 —
Student equity plan implementation 155 155 — 155 155 —
Extended Opportunity Programs and Services 123 123 — 124 123 -1
Disabled Students Program 115 115 — 116 115 -1
Financial aid administration 74 74 — 68 71 2
Student Success for Basic Skills Students 20 20 — 50 50 —
CTE Pathways Initiative — —b — 48 48 —
Lease revenue bond payments 56 56 — 47 47 —
Proposition 39 energy-effi ciency projects 39 39 — 45 45 —
Cal Grant B and C supplemental grants 39 39 — 39 41 2
CalWORKs student services 35 35 — 35 35 —c
Mandates block grantd 32 32 — 33 32 —c
Apprenticeship (community colleges) 31 31 — 32 32 —c
Institutional effectiveness initiative 18 18 — 28 28 —
Innovation awards (one time) — — — 25 25 —
Part-time faculty compensation 25 25 — 25 25 —
Telecommunications and technology services 20 27 $7 23 28 5
Apprenticeship (school districts) 20 20 — 22 21 —c
Online course initiative 10 10 — 15 18 3
Nursing grants 13 13 — 13 13 —
Foster Parent Education Program 5 5 — 5 5 —
Fund for Student Success 4 4 — 4 4 —
Part-time faculty offi ce hours 4 4 — 4 4 —
Campus child care support 3 3 — 3 3 —c
Othere 3 3 — 3 3 —c
Mandate backlog payment (one time) 190 193 3 — — —
Subtotals ($1,956) ($1,966) ($10) ($2,238) ($2,189) (-$49)
Totals $7,997 $7,983 -$14 $8,259 $8,295 $36
a
Budget provides an additional $24 million in Proposition 98 settle-up and $6 million in unspent Proposition 98 prior-year funds for this purpose.
b
State provided $96 million in 2014-15, including $48 million for 2015-16 costs.
c
Less than $500,000.
d
Includes $17,000 in 2015-16 and $13,000 in 2016-17 for mandate reimbursements.
e
Includes Equal Employment Opportunity, transfer education and articulation, district fi nancial crisis oversight, part-time faculty health insurance, and Academic Senate.
CTE = career technical education.
24
Summary of California Community Colleges Recommendations
Program May Revision Proposal LAO Recommendation
General purpose apportionment Increase by $75 million. Adopt. Colleges can use fl exible funds to meet highest priorities.
funding
Online Education Initiative Provide $20 million one time. Adopt. Accelerates implementation of online courses.
Technical assistance for Increase by $5 million one Adopt. Maintains service level to consortia during transition process.
Adult Education Consortia time (over three years).
Telecommunications and Increase by $7 million one Adopt. Expands Internet capacity for statewide technology projects.
Technology Infrastructure time and $5 million ongoing.
Full-Time Student Success Increase by $2 million. Adopt. Reduces fi nancial aid disparity between career technical
Grant education students and other students.
CCC Academic Senate Increase by $300,000. Adopt. Addresses increased workload for statewide initiatives.
Energy-effi ciency projects Increase by $4 million. Adopt. Increase for projects consistent with revised Proposition 39
(Proposition 39) revenue estimate.
Equal Employment Opportunity Increase by $2 million. Adopt. Uses special fund balance for authorized purposes.
Strong Workforce Program Make policy changes. Modify. Remove requirement that LAO approve funding allocations.
Zero-Textbook-Cost Make policy changes. Modify. Add requirement for CCC to coordinate with related state
Degree Program initiatives. Consider adding component for instructional materials for
incarcerated adults.
Instructional materials for Provide $3 million. Reject. Proposal lacks adequate information and raises several
incarcerated adults concerns. Consider link to zero-textbook-cost proposal.
Basic Skills Initiative Make policy changes. Modify. Adopt change in share for statewide professional
development (from 2.4 percent to 5 percent of total program funding).
Designate fi rst-year funding for grants. Remove requirement that
LAO concur on funding factors.
Enrollment growth Make no changes to January Modify. Reduce 2015-16 enrollment base to refl ect updated data and
proposal. carry adjustment forward into 2016-17. Still assume 2 percent growth
year over year. Use freed-up funds for other high priorities.
CCC mandates backlog Provide $29 million. Reject. Per-student approach to reducing CCC mandates backlog no
longer makes sense.
Deferred Maintenance and Increase by $189 million. Modify. To extent Legislature frees up funding by rejecting or
Instructional Equipment modifying other CCC proposals, redirect funds for one-time purposes
such as maintenance backlog.
25
California Student Aid Commission Budget
(Dollars in Millions)
Year-to-Year Change
2015-16 2016-17 at May Revision
Governor’s May Governor’s May
Budget Revision Change Budget Revision Change Amount Percent
Expenditures
Local Assistance
Cal Grants $1,966 $1,915 -$51 $2,103 $2,005 -$98 $90 5%
Middle Class Scholarships 82 48 -34 116 116 — 68 139
APLE 17 14 -2 14 12 -2 -3 -18
Chafee Foster Youth 12 12 — 12 12 — — —
Cal-SOAP 8 8 — 8 8 — — —
National Guard Awards 2 2 — 2 2 — — —
Other Programsa 1 1 —b 1 1 —b —b -22
Subtotals ($2,088) ($2,001) (-$86) ($2,256) ($2,155) (-$101) ($154) (8%)
State Operations $14 $14 — $14 $17 $2 $2 17%
Totals $2,102 $2,015 -$86 $2,271 $2,172 -$99 $157 8%
Funding
General Fund $1,564 $1,477 -$86 $1,428 $1,043 -$385 -$434 -29%
Federal TANF 521 521 — 826 1,109 283 588 113
Otherc 17 17 — 17 20 3 3 20
a
Includes Cash for College, Child Development Teacher/Supervisor Grants, Graduate Assumption Program of Loans for Education, John R. Justice Program, Law Enforcement
Personnel Dependents Scholarships, and State Nursing Assumption Program of Loans for Education for Nursing Faculty.
b
Less than $500,000 or 0.5 percent.
c
Includes College Access Tax Credit Fund, Student Loan Authority Fund, and other federal funds.
APLE = Assumption Program of Loans for Education; Cal-SOAP = California Student Opportunity and Access Program; and TANF = Temporary Assistance for Needy
Families.
26
Cal Grant Spending
(Dollars in Millions)
Year-to-Year Change
2015-16 2016-17 at May Revision
Governor’s May Governor’s May
Budget Revision Change Budget Revision Change Amount Percent
Total Spending $1,966 $1,915 -$51 $2,103 $2,005 -$98 $90 5%
By Segment:
UC $887 $865 -$22 $943 $890 -$53 $25 3%
CSU 669 650 -19 734 698 -36 48 7
Private nonprofi t institutions 253 247 -6 261 253 -9 6 2
CCC 137 132 -4 146 145 -1 12 9
Private for-profi t institutions 21 21 -1 19 18 -1 -2 -11
By Program:
High School Entitlement $1,595 $1,547 -$48 $1,711 $1,637 -$74 $90 6%
CCC Transfer Entitlement 209 217 9 204 190 -15 -28 -13
Competitive 157 145 -12 184 172 -12 27 19
Cal Grant C 5 5 —a 4 5 1 —a —a
By Award Type:
Cal Grant A $1,115 $1,084 -$31 $1,178 $1,122 -$57 $38 3%
Cal Grant B 846 826 -20 921 878 -43 52 6
Cal Grant C 5 5 —a 4 5 1 —a —a
By Renewal or New:
Renewal $1,365 $1,352 -$13 $1,480 $1,419 -$60 $67 5%
New 601 563 -39 624 585 -39 22 4
By Funding Source:
General Fund $1,443 $1,392 -$51 $1,276 $890 -$385 -$502 -36%
Federal TANF 521 521 — 826 1,109 283 588 113
College Access Tax Credit 2 2 — 2 5 3 3 166
Fund
a
Less than $500,000 or 0.5 percent.
TANF = Temporary Assistance for Needy Families.
27
Cal Grant Recipients
Year-to-Year Change
2015-16 2016-17 at May Revision
Governor’s May Governor’s May
Budget Revision Change Budget Revision Change Amount Percent
Total Recipients 340,539 330,650 -9,889 361,608 347,936 -13,672 17,286 5%
By Segment:
CSU 125,595 121,514 -4,081 136,110 128,956 -7,154 7,442 6%
CCC 108,074 105,107 -2,967 114,011 112,725 -1,286 7,618 7
UC 73,398 71,638 -1,760 77,639 73,384 -4,255 1,746 2
Private nonprofi t institutions 29,057 28,386 -671 30,093 29,107 -986 721 3
Private for-profi t institutions 4,415 4,005 -410 3,755 3,764 9 -241 -6
By Program:
High School Entitlement 255,904 247,595 -8,309 273,062 262,770 -10,292 15,175 6%
Competitive 50,627 48,507 -2,120 56,170 54,215 -1,955 5,708 12
CCC Transfer Entitlement 26,562 27,632 1,070 25,712 23,951 -1,761 -3,681 -13
Cal Grant C 7,446 6,916 -530 6,664 7,000 336 84 1
By Award Type:
Cal Grant B 216,439 209,835 -6,604 232,184 223,585 -8,599 13,750 7%
Cal Grant A 116,654 113,899 -2,755 122,760 117,351 -5,409 3,452 3
Cal Grant C 7,446 6,916 -530 6,664 7,000 336 84 1
By Renewal or New:
Renewal 205,959 201,986 -3,973 222,500 214,991 -7,509 13,005 6%
New 134,583 128,668 -5,915 139,109 132,944 -6,165 4,276 3
Totals do not match across all categories due to modeling issues.
28