The 2021-22 Budget: Transitional Kindergarten Expansion Package

analysis full gutter The 2021-22 Budget: Transitional Kindergarten Expansion Package FEBRUARY 2021 Background Governor’s Budget School Districts Offer Transitional Provides $500 Million One Time to Support Kindergarten (TK) to Certain Students. Under Transitional Kindergarten Expansion. The state law, TK is the first year of a two-year Governor’s budget includes three proposals kindergarten program. School districts can intended to begin implementing the preschool goals enroll students in a TK program if the student set in his master plan for early learning and care. has their fifth birthday between September 2 These proposals include: and December 2 of that school year. Similar to • $250 million one-time Proposition 98 General all other K-12 students, TK students generate Fund for per-pupil grants to school districts attendance-based funding through the Local that will serve additional TK students who Control Funding Formula (LCFF). In 2018-19, have their fifth birthday after December 2. 91,000 students in California were enrolled in TK. Funds would be distributed through a Districts Have Option to Serve Younger competitive grant process that gives priority Children in TK. School districts also have the to districts primarily based on the need option to provide TK to students who are born for expanded access to TK. The Governor after December 2, but have their fifth birthday proposes a multiyear effort, with 2021-22 during the school year. School districts only receive serving as a planning year where school attendance-based funding for these students after districts would apply for the grants. Selected the student turns five. school districts would then receive funding State Also Funds Preschool Program for for the year-over-year increase in TK students Low-Income Children. The state also funds served in the 2022-23 school year, and would State Preschool, which provides preschool to receive per-pupil grants equivalent to half of low-income, three- and four-year olds. In 2018-19, the LCFF rate. If a school district meets its 143,000 three- and four-year olds were enrolled in TK expansion goal in 2022-23, it will continue State Preschool. Figure 1 on the next page shows to receive additional per-pupil funding for the key characteristics of TK and State Preschool. increases in TK enrollment in 2023-24. Funds Governor’s Master Plan Includes Goal to in 2023-24 may be prorated based on the Provide Universal Preschool to All Four-Year availability of funds. Olds. In December 2020, the Governor released • $200 million one-time non-Proposition 98 a master plan for early learning and care. One of General Fund to construct or retrofit existing the goals within the master plan is to provide all of TK facilities. If any funds are not awarded by California’s income-eligible three-year-olds and all the second year of the program, funds could four-year olds with access to preschool. The first also be awarded for full-day kindergarten step of the plan is to implement common standards facilities. The proposed funding would have for State Preschool and TK to create a unified similar rules and requirements to the Full-Day preschool program. The second step is to expand Kindergarten Facilities Grant Program TK for all four-year olds, first prioritizing four-year funded in 2018-19. For example, grants will olds in high-poverty areas. The third step is to be prioritized for school districts that meet phase in preschool for all income-eligible three-year financial hardship criteria or have a high olds. 2021-22 LAO Budget Series 1 analysis full gutter Figure 1 Key Characteristics of Preschool Programs Transitional Kindergarten State Preschool Age Four-year olds with birthdays between Three- and four-year olds. September 2 and December 2, with option to serve some younger students. Income Eligibility None. A family of three must generally earn at or below $73,885. Program Duration Must operate at least 180 days per year, at Must operate at least 246 days per year, least three hours per day but determined 6.5 hours per day for full-day program; at by district. least 175 days per year, 3 hours per day for part-day program. Work Requirement None. None for the part-day program. Working families are prioritized for the full-day program. Staffing Ratio 1 to 33 maximum teacher-child ratio. 1 to 24 maximum teacher-child ratio and 1 to 8 maximum adult-child ratio. Funding Source Proposition 98 General Fund. Proposition 98 and Non-Proposition 98 General Fund. Providers School districts. School districts, county offices of education, community colleges, and community-based organizations. Teacher Bachelor’s degree, multiple subject Child Development Teacher Permit (24 units of Requirements teaching credential, and a Child ECE/CD plus 16 general education units). Development Teacher Permit or at least 24 units of ECE/CD or comparable experience.a a Child Development requirements effective August 1, 2021. ECE/CD = Early Childhood Education/Child Development. population of students eligible for free or Governor’s proposal differs from recent legislative reduced-price meals. action by expanding access through TK instead of • $50 million one-time Proposition 98 to State Preschool. How the Legislature may want to provide professional development to increase go about preschool expansion depends on its own the number of teachers able to serve TK specific goals. For example, if the Legislature wants students and improve the quality of existing to offer one year of public preschool to all students, TK and kindergarten teachers. Funds will be then TK could be a better path to expansion. The distributed to county offices of education, state could use school district catchment areas school districts or charter schools based on as a way to ensure that all eligible children have a competitive process developed by the state access to a TK program. If the Legislature wants Superintendent of Public Instruction, subject to offer preschool to three- and four-year olds from to the approval of the executive director of the low-income families, then the State Preschool State Board of Education. program could be a better path to expansion. State Preschool already serves a large number of students from low-income families across the state. LAO Comments TK Expansion Requires Ongoing Funding. Consider if Legislature’s Priorities Align Although school districts expanding TK likely With Governor’s. The Legislature has historically would incur some one-time costs (such as making taken action to expand access to preschool. The facilities suitable for TK instruction), most of 2021-22 LAO Budget Series 2 analysis full gutter the costs associated with TK (such as paying increasing the total number of children served. for additional teachers) are ongoing. Under the This is particularly the case in school districts Governor’s proposal it is unclear how school that currently use classrooms on elementary districts would sustain programs after 2023-24, school campuses for State Preschool. If the when the proposed one-time incentive grants Legislature is interested in expanding preschool expire. Furthermore, based on our conversations access through TK, it may want to clarify the with several school districts, limited-term funding role of the State Preschool program and make is unlikely to be an incentive for school districts associated programmatic changes. For example, to expand their TK programs. A much greater the Legislature could decide its intent is for all incentive to achieve universal preschool for four-year olds to attend TK, with State Preschool four-year olds would be to allow school districts to and other child care programs providing before and generate a full year of attendance-based funding after school care. The Legislature could instead for children born after December 2. This approach, decide to give low-income families the choice of however, would require an increase in ongoing attending TK or State Preschool. Alternatively, funding. Moreover, to achieve universal access to the Legislature could direct State Preschool to preschool through the TK program, the state would exclusively serve three-year olds. Clarifying the role also have to allow school districts to generate of State Preschool would ensure the state’s existing attendance-based funding for children who turn five programs operate in alignment to best serve after the school year ends. children and their families. State Likely Could Sustain Ongoing Some One-Time Support Seems Reasonable Costs to Expand TK, but Would Limit Other to Support Districts in Meeting Expansion Education Augmentations. Rather than provide Requirements. If the Legislature is interested in one-time funding, the Legislature could provide expanding TK, providing one-time funds will likely ongoing funding to expand the TK program, over help some districts to expand their TK programs. multiple years, to serve all four-year olds. At For example, facility expansion support seems full implementation, we estimate this approach reasonable as school districts would likely need would cost roughly $3 billion more than current to modify existing facilities or construct new spending on TK. Based on the administration’s facilities suitable for TK. TK and kindergarten multiyear outlook and associated projections of facilities have additional requirements compared the Proposition 98 minimum guarantee—and to other school facilities, such as restrooms accounting for changes in attendance and cost of that must be self-contained in the classroom or living—we think the state would be able to cover separate from those of older students. One-time the costs of TK expansion within growth in the support would also help additional teachers meet minimum guarantee. Were the state to take such the statutory requirements for TK teachers. (In an approach, however, it likely would be unable addition to an elementary teaching credential, to cover the cost of any other major ongoing starting August 2021, TK teachers are required to programmatic K-12 augmentations over the next have either 24 units in early childhood education several years. and/or child development, a child development TK Expansion Will Have Sizeable Impact permit, or comparable experience in a classroom on State Preschool. If the Governor’s proposal setting.) If the Legislature is interested in changing were to successfully encourage school districts to programmatic requirements to the TK program (as offer TK to younger students, it would significantly alluded to in the Governor’s master plan), one-time affect State Preschool enrollment. Although State funds could be helpful to support districts in Preschool programs can serve younger students, meeting those requirements. To be most effective, 63 percent of statewide enrollment comes from funds should be aligned and restricted towards four-year olds. In some school districts, TK meeting these specific requirements. expansion could shift capacity to serve four-year olds from State Preschool to TK, instead of 2021-22 LAO Budget Series 3 analysis full gutter LAO Publications This report was prepared by Sara Cortez, and reviewed by Edgar Cabral and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2021-22 LAO Budget Series 4