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Governor Brown releases his 2014-15 budget proposal
Budget represents the most significant investment in school funding since 2008


1/9/14

Today, Governor Brown presented his 2014-15 budget proposal one day earlier than originally planned. The Governor revealed that the 2014-15 budget provides $10 billion in new Proposition 98 funding -- the most significant investment in school funding since 2008.

The increased education funding is a direct result of the additional revenues provided by Proposition 30. CSEA and other unions were instrumental in passing Proposition 30 which was approved by the voters in 2012 to protect education funding.  

The $10 billion will be used to eliminate school deferrals and provide an additional $4.5 billion toward the implementation of the Local Control Funding Formula (LCFF).  This is nearly twice the amount that was budgeted for LCFF in 2013-14.

Under the budget proposal, every school district in the state will receive more funding.  As a result, there will be opportunities to continue to restore jobs and bargain for long overdue raises.

The Governor's budget also proposes a policy change to strengthen the Rainy Day Fund, including creating a Proposition 98 reserve.  In years where funding spikes, a certain amount will be saved to be used in years where the funding is in decline.

The 2014-15 budget proposes a multi-year plan that pays off budgetary debt from past years, and makes wise investments in education.

In a related note, the State Board of Education will soon be adopting LCFF regulations pursuant to statute. The State Board of Education and the Superintendent of Instruction have been clear that decisions on how to spend money will be made locally and the County Offices of Education will monitor spending.  Therefore, we want to strongly encourage CSEA chapters to become involved in the development of your district's local spending plan.  CSEA is convening a taskforce to develop information and materials to help chapters engage in this effort. 


Highlights of the Governor's Budget Proposal Include: 

K-12 Education
Increase in Proposition 98 funding of approximately $10 billion over 2014-15. The increase will be allocated as follows:

  • $5.5 billion to eliminate all remaining school deferrals.

  • $4.5 billion, an increase of 10.9 percent, to fund the second year of implementing the LCFF in order to help schools reach their targeted funding levels (in 2014-15 the target levels will be increased by a 0.86 percent cost-of-living adjustment).

  • $363 million for energy efficiency projects and training pursuant to Proposition 39.

  • $33.3 million for a 0.86 percent cost-of-living adjustment for categorical programs outside the LCFF including Special Education and Child Nutrition.

  • $25.9 million to fund the second year implementation of LCFF for County Offices of Education.

Community Colleges

  • $592.4 million to eliminate all remaining Community College deferrals.

  • $155 million to allow for a 3% increase in enrollment growth/restoration, with a direction to the Board of Governors to adopt a growth formula that prioritizes districts with the highest unmet demand.

  • $200 million for student success programs, including $100 million for the Student Success categorical program and $100 million to close the achievement caps for underrepresented student groups.

  • $175 million in one-time funding for deferred maintenance and instructional equipment purchases.

  • $48.5 million for a 0.86 percent cost-of-living adjustment.

  • $39 million for energy efficiency projects and training pursuant to Proposition 39.

What's Next?
Now that the Governor has introduced his budget, the Legislature will begin their analysis of those proposals over the next several months to craft a legislative budget.

The Legislature has until June 15th to present a budget to the Governor.  Under the requirements of Proposition 25, the Governor must sign the budget by June 30th.
CSEA will be reviewing the detail of the budget to analyze the impact to schools and community colleges.
 
Caution: This report is based on a preliminary analysis of the budget. Some proposals may change as additional details become available. We will provide you with additional reports on any new and significant findings.

Related Resources:
New local funding control formula gives classified employees a voice in how funds are spent