Legislature Adopts Full 2024-25 State Budget Package after Reaching Accord with Governor

Sacramento, CA—The legislature passed a set of budget and related “trailer” bills this week that reflect a full budget package negotiated with the support of Governor Newsom and that amend a prior “placeholder” budget. At the time this article was drafted, the main budget bills were signed into law. The related trailer bills, including the 336-page education trailer bill, have not yet made it to the governor’s desk, though we presume he will sign them into law.

The impact of the budget package on K-12 school funding is similar to prior versions, including fully funding the modest, 1.07 percent cost-of-living adjustment (COLA). It calls for a brief deferral of nearly $3.6 billion of K-12 funds for the June 2024 Principal Apportionment into July. However, California Department of Education (CDE) staff inform CSDC that they have already processed the June 2024 Principal Apportionment and that the June 2024 Principal Apportionment cash should flow along the normal schedule, notwithstanding the deferral. As such, the primary impact of the “deferral” is how the Apportionment is timed on the state’s accounting books with no practical impact on schools’ cash flow. Separately, the trailer bill calls for a much smaller, $245 million deferral of the June 2025 funding into July of the same year which will have a minimal impact on...

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