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Budget Act for 2024–25: Information

Overview of education-related funding included in the Budget Act of 2024–25.

Governor Gavin Newsom signed the Budget Act of 2024 on June 26, 2024. He signed related legislation later in June and September. The Budget Act and related legislation put a spending plan in place for 2024–25 and a revised spending plan in place for 2023–24. This letter provides an overview of the budget package plus information on budget actions that affect Transitional Kindergarten through grade twelve (TK–12), adult education, and early education programs.

Copies of this document, as well as other budget-related documents, are available on the California Department of Education (CDE) Budget web page. Official state budget documents are available through the California Department of Finance (DOF)External link opens in new window or tab..

Overview

The 2024 Budget Act addresses a significant decline in revenues. The decline became apparent following a period of extraordinary revenue volatility as a result of the COVID-19 pandemic. A decision by the Internal Revenue Service to postpone tax payments in 2023 added to the uncertain revenue picture. The Department of Finance estimated the budget shortfall to be $46.8 billion.

The budget package addresses the shortfall with a combination of spending reductions, fund shifts, delays in planned spending, reversions, cost shifts, drawdown of reserves, revenues, funding shifts, and revenue enhancements.

Despite the budget shortfall, education funding remains strong. The budget package maintains funding for the Local Control Funding Formula (LCFF), special education, transitional kindergarten, nutrition, and preschool. The total overall funding (federal, state, and local) for all TK–12 education programs is $133.9 billion.

Prop 98

The budget reflects Prop 98 funding levels for TK–12 and community colleges of $103.7 billion in 2022–23, $98.5 billion in 2023–24, and $115.3 billion in 2024–25. For state budgeting and financial reporting purposes, $6.2 billion of the $103.7 billion in 2022–23 will not be recorded as General Fund costs in the 2022–23 fiscal year; instead they will be recorded as costs in the 2026–27 through 2035–36 fiscal years.

The budget includes two significant changes related to Prop 98. First, it suspends the Prop 98 guarantee in 2023–24, creating a maintenance factor obligation of $8.3 billion (the amount that would otherwise be required, in the absence of suspension, to support schools in 2023–24). A payment of $4.1 billion of the maintenance factor is projected for 2024–25. Second, the budget rebenches the Test 1 requirement from 38.6 percent to 39.2 percent of State General Fund revenues to account for the continued expansion of TK and the implementation of Prop 28, which requires increased funding for arts and music.

Another key component of the budget package is a withdrawal of the entire $8.4 billion balance in the Public School System Stabilization Account, also known as the Prop 98 Rainy Day Fund, in 2023–24. This withdrawal is required by the formula that governs withdrawals and deposits for the Prop 98 Rainy Day Fund. In addition, the budget package includes a $1.1 billion discretionary deposit in 2024–25, resulting in a balance in the account of $1.1 billion.

Local Control Funding Formula

The budget package includes a 1.07 percent Local Control Funding Formula (LCFF) cost-of-living adjustment (COLA) for 2024–25. The budget also includes LCFF deferrals in the amount of $3.6 billion from 2023–24 to 2024–25, and an additional $246 million from 2024–25 to 2025–26. Similarly, there is a $2.3 billion deferral affecting categorical programs, shifting funds from 2022–23 to 2023–24. The $3.6 billion LCFF deferral from 2023–24 to 2024–25 and the $2.3 billion deferral of categorical programs from 2022–23 to 2023–24 were budgetary deferrals, meaning the timing of payments to Local Educational Agencies (LEAs) was not affected.

Major Prop 98 Adjustments

Learning Recovery Emergency Block Grant

The budget package requires that the use of allocated but unexpended Learning Recovery Emergency Block Grant (LREBG) funds be based on a local assessment of needs. In addition, the use of these funds must be addressed in the existing Local Control and Accountability Plan development process. The budget also clarifies that LREBG funds may be used for professional development for the new Mathematics Framework and the English Language Arts/English Language Development Framework.

Instructional Continuity and Attendance Recovery

The budget package allows LEAs to add up to 10 days of attendance recovery time per student to the attendance data submitted to the CDE for Average Daily Attendance reporting beginning in 2025–26. Attendance recovery may be generated through programs offered during summer school, intersessional school, on weekends, or before/afterschool, so long as certain requirements are met. Expanded Learning Opportunities Program funds may also be used for attendance recovery programs.

The budget also includes provisions that encourage LEAs to provide remote instruction to mitigate learning loss during an emergency or natural disaster. Beginning July 1, 2025, LEAs must also include an instructional continuity plan in their School Safety Plan that includes procedures for student engagement within five days of an emergency and a plan to provide hybrid or remote learning within 10 instructional days.

To further instructional continuity, the budget includes $4 million in one-time Prop 98 funds to research existing models of hybrid and remote learning and to develop new models that support students’ attendance.

Teacher Professional Development and Preparation

The budget provides $25 million in one-time Prop 98 funds to support administration of literacy screenings by the 2025–26 school year. It also provides $20 million in one-time Prop 98 funds to provide training aligned with the new California Mathematics Framework for mathematics coaches and leaders.

Similarly, there are statutory changes designed to better prepare school staff to offer appropriate mental health supports to students.

The budget package also includes statutory changes to recognize the completion of a bachelor’s degree as satisfying the basic skills requirement for a credential and to improve transcript review to certify subject matter competency.

The package also suspends the August 15, 2024, layoff window for certificated and classified staff to protect school staff from layoffs.

State Preschool

The budget package authorizes California State Preschool Program providers to serve two-year-old children, in addition to three- and four-year-old children, until June 30, 2027. It suspends a planned increase in the proportion of children with disabilities who must be served, which was slated to rise from 5 percent in 2023–24 to 7.5 percent in 2025–26 and 10 percent in 2026–27. The budget authorizes the CDE to develop and implement a streamlined request for application process to award new State Preschool slots to existing providers.

Transitional Kindergarten

The Budget Act includes additional funding to honor prior commitments to expand TK. Specifically, the budget includes $988.7 million of Prop 98 General Fund to support the second year (the 2023–24 school year) of expanded eligibility for TK, and includes $390.2 million of Prop 98 General Fund to add one additional certificated or classified staff person to every TK class in the second year. For the third year (the 2024–25 school year), the necessary funding increases to $1.5 billion of ongoing Prop 98 General Fund as a result of expanded eligibility for TK, and includes $515.5 million of ongoing Prop 98 General Fund to maintain the addition of one certificated or classified staff person to every transitional kindergarten class in the third year.

Other Budget Changes

The budget also includes the following augmentations:

  • $907.1 million ongoing Prop 98 General Fund to support Arts and Music in Schools (Prop 28).
  • $89.2 million of ongoing Prop 98 General Fund to provide a 1.07 percent cost-of-living adjustment for specified categorical programs.
  • $179.4 million of ongoing Prop 98 General Fund in 2024–25 and $120.8 million of one-time Prop 98 funds in 2023–24 to fully fund the universal school meals program. This is on top of $1.6 billion in base funding for the program.
  • $9 million of one-time Prop 98 funds for the Classified School Employee Summer Assistance Program, which provides supplemental pay for classified staff during intersessional months when they are not employed.
  • $7 million of one-time Prop 98 funds to support inquiry-based science instruction and assessment.
  • $5 million of one-time Prop 98 funds to support the California Teachers Collaborative for Holocaust and Genocide Education.
  • $5 million of one-time General Fund for Save the Children, which supports after school programs in rural districts.
  • $3.4 million General Fund, of which $380,000 is ongoing, for technology upgrades at the State Special Schools and Diagnostic Centers.
  • $3.2 million ongoing Prop 98 General Fund to support the K–12 High Speed Network program.
  • $2.1 million of ongoing Prop 98 General Fund to support the California College Guidance Initiative.
  • $2.1 million of ongoing Prop 98 General Fund for the Sacramento County Office of Education to enable fourth graders attending public schools to access California state parks.
  • $2 million of ongoing Prop 98 General Fund to establish a Technical Assistance Center to help LEAs assist parents and students in the transition to college.

Finally, the budget includes multiple reductions to planned investments. The budget forgoes:

  • A planned investment of $875 million to support the School Facility Program.
  • A planned investment of $550 million to support the California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program.
  • A planned investment of $500 million one-time Prop 98 funds for green school buses

Budget and Trailer Bills

The Budget Act and Trailer Bills (TBs) are as follows:

Questions:   Fiscal Policy Office | GAD@cde.ca.gov
Last Reviewed: Tuesday, November 25, 2025
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