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Education Budget - CalEdFacts

This content is part of California Department of Education's information and media guide about education in the State of California. For similar information on other topics, visit the full CalEdFacts.

This information is current as of December 30, 2013. Up-to-date information on the state and federal education budgets is available on the California Department of Education (CDE) budget page.

On June 27, 2013, Governor Jerry Brown signed the Budget Act of 2013. The Governor signed related trailer bills on July 1, 2013, thereby putting into place a spending plan for 2013–14 and a revised spending plan for 2012–13. These trailer bills amend the California Education Code and other California codes to reflect technical changes necessary to implement the budget.

The 2013–14 Budget Act reflects a significant improvement in the state’s finances due to the economic recovery and voter approval in the November 2012 election of temporary increases in sales and use tax and personal income tax (Proposition 30) as well as increased corporate income taxes for multistate businesses (Proposition 39). The budget package implements a plan to reduce the “wall of debt” the state has accumulated after years of deficits.

For the first time since 2008–09, the state did not face a multi-billion-dollar deficit. The 2013–14 budget package projects General Fund (GF) resources of $98 billion including new revenues generated by Propositions 30 and 39 and GF expenditures of $96.3 billion. The budget package projects an estimated $1.1 billion reserve at the end of 2013–14.

Kindergarten through Grade Twelve Education Highlights

Table 1 summarizes the total funding from all sources for kindergarten through grade twelve (K–12) education from all sources in 2013–14. The table shows that the budget projects total funding of $70 billion. Chart 1 shows 2013–14 K–12 funding sources in pie chart format.

Table 1: Funding for K–12 Education (in millions)

Sources of Funding

All Sources

Proposition 98

State General Fund



State lottery


Other state funds


Federal funds


Local debt service


Local property taxes



Other local funds





Note: Includes funds for CDE state operations, state special schools, state school facilities bond repayments, state contributions to the State Teachers Retirement System, the State Library, and the Commission on Teacher Credentialing.

Chart 1: Sources of Funding for California Schools

K-12 Funding Sources - Pie chart showing the breakdown by percentage of funding sources for the 2013–14 state education budget. According to the chart, 56.9 percent comes from the state  including Proposition 98; 31.1 percent comes from local property taxes and other local sources; 10.5 percent comes from the federal government, and 1.5 percent from state lottery proceeds.

Proposition 98 Changes

The budget package includes a Proposition 98 K–12 funding level of $49.2 billion for 2013–14. This is $1.3 billion less than the 2012–13 revised budget level. The apparent decline in funding from 2012–13 to 2013–14 is primarily due to a one-time appropriation of $1 billion in 2012–13 for Common Core implementation with an additional $250 million in one-time funds provided in 2013–14.

Local Control Funding Formula

The budget package replaces the current K–12 finance system with a new Local Control Funding Formula (LCFF). For school districts and charter schools, the LCFF creates base, supplemental, and concentration grants in place of most existing K–12 funding streams, including revenue limits and most state categorical programs. For county offices of education (COEs), the LCFF creates separate funding streams for oversight activities and instructional programs.

The 2013–14 Budget Act provides $2.1 billion for school districts and charter schools and $32 million for COEs to support the first-year implementation of the LCFF. Until full implementation, however, local educational agencies (LEAs) will receive roughly the same amount of funding they received in 2012–13 plus an additional amount each year to bridge the gap between current funding levels and the new LCFF target levels. The budget projects the time frame for full implementation of the LCFF to be eight years.

The LCFF includes the following components for school districts and charter schools:

Common Core Implementation

The budget package provides $1.25 billion in one-time funds ($1 billion in 2012–13 and $250 million in 2013–14) to support the implementation of Common Core State Standards. Allowable expenditures include instructional materials, professional development, and technology. Funds will be distributed to school districts, COEs, charter schools, and state special schools based on prior year enrollment.

Charter Schools

The budget package extends, for three years, the requirement that school districts offer first right of refusal for identified surplus property and facilities to charter schools before selling those assets to other entities or disposing of the property. To be eligible to receive facilities under this provision, charter schools must have at least 80 units of ADA.

The budget package also includes language to specify the conditions under which charter schools can receive attendance funding for students on multi-track school calendars and requires that compliance with these requirements be included in the audits conducted pursuant to California Education Code Section 41020.

Adult Education and Apprenticeship Programs

The budget package provides $25 million for adult education planning grants to be awarded jointly by the California Community Colleges (CCC) and the CDE. The planning grants will be awarded to consortia made up of at least one college and one LEA. The budget package also requires LEAs to maintain 2012–13 expenditure levels on adult education for two years.

The budget package shifts administration of Apprenticeship Programs to the CCC. The program will be consolidated with the CCC Apprenticeship Program as a separate categorical program.

Special Education

The budget package de-links federal funding from the state’s formula for allocating special education funds, commonly referred to as Assembly Bill 602. It also provides an increase of $3 million to update the statewide target rate used in funding calculations to the statewide average after removing federal funds from the special education formula.

The budget package also modifies the behavioral intervention plan mandate, aligning it more closely with federal law. The budget provides $230,000 in one-time federal funds to the CDE to develop technical assistance advisories that reflect federal laws, regulations, research, and best practices.

The budget package also includes some program and funding consolidations.

Mandates Block Grant

The budget package provides an additional $50 million to the K–12 Mandates Block Grant for a total appropriation of $217 million in 2013–14. The additional funding is for ADA in grades nine through twelve to cover the cost of the High School Science Graduation mandate.

Proposition 39

The budget provides a total of $464 million (Proposition 98) in funding for energy efficiency programs including $381 million for K–12. K–12 funds would largely be distributed based on prior year ADA with minimum grant awards for small LEAs. Some of the funds would be allocated based on need as reflected by a district’s percentage of low-income students. The California Energy Commission will consult with the CDE, the CCC, and the Public Utilities Commission to establish program guidelines and must approve an LEA’s expenditure plan outlining projects to be funded prior to the CDE disbursement of funds. However, a portion of the funds may be distributed to an LEA prior to submission of the plan, upon request, for energy audits and other plan development activities.

Career Technical Education

The budget provides $250 million in one-time funds, available for expenditure in the 2013–14 through 2015–16 fiscal years, to support competitive grants for K–14 Career Technical Education. Grants will be awarded based on the following priorities:

The budget also:

Child Development

The budget provides $25 million in Proposition 98 funds to restore preschool services. The budget also provides $15.8 million to backfill the anticipated federal sequestration reduction and $10 million in one-time funds to expand services in the General Child Care, Alternative Payment, and Migrant Programs. It is the intent of the Legislature to fully fund caseload projections for CalWORKs Stage 2 and Stage 3 child care programs.

Budget and Trailer Bills

The Budget Act and trailer bills are as follows:

Questions:   Fiscal Policy Office | 916-319-0821
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