Budget Deal Reached – June 27, 2022



However, the announcements today were preceded by the release of the K-12 omnibus trailer bill (AB/SB 181), and we believe most or all of its provisions are part of the broader agreement among the Governor and Legislature. With the caveat that some provisions could be subject to further negotiation and change, below are some of the most notable parts of the current K-12 budget bills.


LCFF Base - The LCFF base grant adjustment will total 12.84% above 2021-22 levels, including a 6.56% COLA and an additional increase of 6.28%. The following table includes the relevant increases and new amounts:



Attendance Relief - The budget includes the current year ADA fix that protects LEAs (school districts, COEs, and classroom-based charter schools) from attendance disruptions caused by COVID and related issues. This provision essentially allows LEAs to be funded at the greater of current year ADA or current year enrollment adjusted for 2019-20 absence rate. The budget trailer bill includes new language prohibiting LEAs from using this ADA calculation if they failed to offer independent study, or did not meet certain key components of the independent study program that applied for the 2021-22 school year.


Three-year Rolling Average - As expected, the budget also includes the three-year rolling average option for school districts with declining enrollment. This does not apply to COEs and charter schools are given this protection for the budget year only.


County Offices of Education - The LCFF Operations Grant is adjusted to include the COLA and an additional $175,000 for each school district in a county and additional $14 for each per ADA amount.


One-Time Funding - The budget includes about $11.5 billion of one-time funding in two large block grants, the nearly $8 billion Learning Recovery Emergency Block Grant (contained in AB/SB 182) and a roughly $3.5 billion Arts, Music and Instructional Materials Discretionary Block Grant. Both block grants go out to LEAs on a per-ADA basis.


The Learning Recovery Emergency Block Grant funds, unlike the Governor’s original proposal, are restricted for these specific purposes:


·       Instructional learning time for the 2022–23 through 2027–28 school years by increasing the number of instructional days or minutes provided during the school year, providing summer school or intersessional instructional programs, or taking any other action that increases or stabilizes the amount of instructional time or services provided to pupils, or decreases or stabilizes staff-to-pupil ratios, based on pupil learning needs.


·       Accelerating progress to close learning gaps through the implementation, expansion, or enhancement of learning supports, such as: Tutoring or other one-on-one or small group learning supports, learning recovery programs and materials designed to accelerate pupil academic proficiency or English language proficiency, providing early intervention and literacy programs for pupils in preschool to grade 3, supporting expanded learning opportunity program, or providing instruction and services consistent with the California Community Schools Partnership Act, regardless of grantee status.


·       Integrating pupil supports to address other barriers to learning, and staff supports and training, such as the provision of health, counseling, or mental health services, access to school meal programs, before and after school programs, or programs to address pupil trauma and social-emotional learning, or referrals for support for family or pupil needs.


·       Access to instruction for credit-deficient pupils to complete graduation or grade promotion requirements and to increase or improve pupils’ college eligibility.


·       Additional academic services for pupils, such as diagnostic, progress monitoring, and benchmark assessments of pupil learning.


The Arts, Music and Instructional Materials Discretionary Block Grant Funds are fairly flexible, encouraging use of the funds for specified purposes but also broadly allowing use of the funds for “operational costs, including but not limited to, retirement and health care cost increases.”


There are obviously many more important pieces of the K-12 budget to report, and we will carefully review the bills, get confirmation regarding whether to expect any further negotiations and modifications, and provide additional updates over the next few days.






Abe Hajela

Partner | Capitol Advisors Group