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Budget: May Revision Released

May 19, 2014


This week, California Gov. Jerry Brown released his May revision to the California budget. While the revisions includes some projected revenues and a substantial “rainy day” fund, the California Budget Project believes it prioritizes paying down debt and the rainy day fun over the restoration of essential public services.

In a report released Friday, the California Budget Project outlined some of the key findings in the revision as it impacts childcare and K-12 education.

Here are a few of the highlights, according to the CBP:

Child Care/ State Preschool Program: The May revision fails restore child care or the state preschool slots lost in recent years. Funding for subsidized child care has been cut nearly 40 percent, resulting in the elimination of nearly one-quarter (about 110,000) of all child care and preschool slots. The May Revision maintains funding levels that do not acknowledge this cut and does not restore pre-recession funding levels to include the nearly 110,000 slots that were cut.

Human Services: Despite the brighter economic outlook, the state in its May Revision, would not call for any major reinvestment in many human services programs that assist families, such as CalWORKs and CalFresh, that help children living in deep poverty.

K-12 Education:

Reduced Debt Payback: The May Revision maintains the governor’s plan to eliminate $5.6 billion in outstanding debt owed to schools. But it does accelerate repayment of deferred payments to school districts by providing an increase of $742.2 million in one-time Proposition 98 funding for 2012-13 and 2013-14 combined, and an offsetting decrease of $742.2 million in ongoing Proposition 98 funding for 2014-15.

Local Control Funding: The revision maintains the governor’s proposal to provide $4.5 billion to continue implementation of the state’s new education funding formula. The Local Control Funding Formula was adopted as part of the 2013-2014 budget agreement. It establishes a target funding level for each of the state’s school districts. (It offers additional grants based on the district’s amount of English learners, foster youth and students eligible for free or reduced-priced meal plans.

School Lunches: The May revision proposes to make it easier for schools that make school meals available to all students under the National School Lunch Program.

High Speed Network: The May Revision provides an additional $26.7 million (one-time funding) for highs speed network implementation as part of the Common Core Standards. (The process would begin with an assessment of each district’s Internet connectivity and provide grants to districts with the greatest need.)