Common use of BUDGET NOTES Clause in Contracts

BUDGET NOTES. Prop. 98 Funding The Proposition 98 funding agreement revises the minimum guarantee for 2022-23 to $97.5 billion but includes an additional $6.2 billion that is included in the base in 2023-24 and going forward. The repayments will be paid back over ten years ($621 million per year), starting in 2026-27. 2022-23 – $97.5 billion, plus $6.2 billion above the minimum for $103.7 billion total (was $110.6) 2023-24 – would be $106.8 billion, but suspended to $98.5 billion (was $107.4) 2024-25 – $115.2 billion, includes For 2023-24, the minimum guarantee is suspended to $98.5 billion and a maintenance factor of $8.3 billion is created. The 2024-25 guarantee of $115.2 billion includes a maintenance factor payment for about half of the suspended funding from 2023-24 ($4.1 billion). $4.1 billion maintenance factor The additional funding for 2023-24 makes Test 2 in effect for that year, with Test 1 operative in the other two years. Prop. 98 is also re-benched for the Universal TK rollout and the implementation of the Arts and Music in Schools (Prop. 28) initiative. K-12 per-pupil funding is projected to be $18,354 from Prop. 98 funds in 2024-25, which is $693 more than the 2023 budget act. Accounting for all sources, it is $24,626 per student. Public School System For 2023-24, $8.4 billion is withdrawn from these The $1.1 billion deposit in 2024-25 is Stabilization Account (PSSSA) reserves, bringing the balance to zero and a deposit of $1.1 billion is included for 2024-25. a discretionary deposit. Local Reserves The 10% cap on local district reserves will not be operative in 2024-25 after the PSSSA is depleted in 2023- 24. The cap is unlikely to be in effect in 2025-26. Prop. 98 Re-benching The Prop. 98 minimum guarantee is “re-benched” to account for the continued rollout of Universal TK and the Arts and Music in Schools initiative funding. COLA The COLA for the state preschool provider rates was suspended for the 2023-24 and 2024-25 fiscal years. Child Nutrition programs receive the 1.07% COLA. Access / Slots Fully funds 11,000 awarded child care expansion slots; revises goal to 200,000 additional slots by 2028. Children with Disabilities At least 5% of funded enrollment must be set aside for children with disabilities; requirement to increase to 10% is repealed. Eligibility Children ages 24 to 35 months allowed with reimbursement rate adjustment at 1.8 allowed, but not required; sunsets on July 1, 2027. Inclusive Early Education Expansion Program $100 million is maintained, proposed cuts are rejected. From General Fund Early Childhood Cuts $550 million planned for 2024-25 for the State Funding could come through the Planning and Preschool, Transitional Kindergarten, Full Day Kindergarten Prop. 2 bond on the November 2024 infrastructure facility grant program. ballot. Universal Transitional TK expansion for 2024-25 offers TK to four-year-olds whose $1.5 billion supports the third year of Kindergarten fifth birthday is between Sept. 2 and June 2, inclusive. Average TK class size of 24 students and classroom ratios of 12 students to 1 adult are required. the UTK expansion. COLA Statutory Cost-of-Living Adjustment (COLA) of 1.07% is fully funded in the 2024-25. Applied to the LCFF and most categorical programs outside the LCFF. Deferrals Two deferrals (June to July) were included in the budget; $3.57 billion was deferred (on paper) from June to July 2024 and $246 million will be deferred from June to July 2025. Local Control Funding Formula (LCFF) The LCFF base grant will increase by the 10.7% COLA. The total LCFF funding proposed is about $983 million above the 2023-24 budget act. TK Add-On would also be increased by COLA, for a total of $3,077 per ADA after the COLA is applied. Equity Multiplier This add-on to the LCFF was first funded in 2023-24 with $300 million. The Multiplier is increased by the COLA and some program changes are included: the per site minimum amount of $50,000 will be adjusted by COLA; unspent funds from closed sites will be returned to the state; schools planned for closure in the budget year will not receive funding and district office enrollment will not generate funding. $303.2 million is allocated for 2024- 25. Categorical funding Statutory COLA of 1.07% is applied to most of the remaining categorical programs that are outside of the LCFF. This includes: Adult Education, American Indian Early Childhood Education Program, American Indian Education Centers, Charter School Facility Grant Program, Child Nutrition Program, Mandate Block Grant, Special Education, Youth in ▇▇▇▇▇▇ Care. Adults in Correctional Facilities receive the prior year COLA (8.22%). $89.2 million supports these programs. August Layoff Window Closed For 2024-25, the statute allowing school district to issue August layoffs of certificated and classified staff, when the LCFF is not increased by at least 2%, is suspended. Learning Recovery Total funding level remains at $6.8 billion and requires A minimum of $2 billion must be Emergency Block ▇▇▇▇▇ ▇▇▇▇ to develop a needs assessment to spend remaining funds, through 2027-28. The expenditures will need to be evidence-based and included in LCAPs. Funds may be used for professional development on the Math and English Language Arts frameworks. spent based on needs assessments, per legal settlement. Arts and Music in Prop. 98 is permanently re-benched to include an amount Funding was $938 million for 2023- Schools (Prop. 28) equal to 1% of the K-12 share of the minimum guarantee. Though Prop. 28 allows reductions to the funding when Prop. 98 is suspended, the budget fully funds this program. 24 and $907 million 2024-25. School Facilities Funding Planned funding of $875 million for the School Facility Program and $550 million for the Preschool, TK, and Full- Day Kindergarten Facilities Grant Program is cut. A bond on is expected to provide alternative funding for these programs. $10 billion bond will be on Nov. 2024 ballot. $8.5 billion would go to TK-12 schools and $1.5 billion to community colleges. Nutrition – Universal Meals Ongoing funding is increased by $179.4 million and another additional $120.8 million one-time funds are included to fully fund the universal meals program in 2023-24 and 2024-25. This funding is added to the base funding of $1.6 billion. Expanded Learning ELOP funding is unchanged at $4 billion per year. No cuts and no COLA. Opportunities Program Programmatic changes include providing up to $2000 per (ELOP) student in 2024-25 to LEAs with <75% unduplicated students; allowing funds to be spent on attendance recovery; extending to two years the deadline for expending funds, starting in 2023-24. District will annually declare intent to run the program, starting in 2025-26. Community Schools Funding is maintained. Minor changes adjust set-aside No cuts, no increases. amounts for implementation and extension grants, and prioritize implementation grants starting July 1, 2024. Discriminatory Materials LEAs are prohibited from adopting or approving use of Complaints can be filed by any materials or curriculum that subjects students to unlawful member of the public under Uniform discrimination, with fiscal penalties for violations. Complaint Procedures, or with the State Superintendent of Public Instruction (new EC Sec. 244) Instructional Continuity Statutory changes included in budget package allow LEAs and Attendance to provide attendance recovery opportunities starting in Recovery 2025-26, allowing up to 10 days of additional ADA. LEAs will also include instructional continuity plans in School Safety Plans and if schools close, they will need to certify they have an adopted school safety plan that includes the instructional continuity plans and that they have provided the instruction and engagement as specified or have not due to extenuating circumstances. Educator Workforce / Funding ($25 million, one-time) for training for literacy . Staffing Shortage screening of K-12 students; Golden State Teacher Grant Program funding is continued but amount awarded per student is reduced and funding is prioritized for low-income students and awardees must commit to working in priority schools; funding ($5 million) allocated for holocaust and genocide training for teachers. Zero-Emission / Green Maintains support of $500 million one-tine funds for $375 million for buses; $125 million School Buses greening of school bus fleets. Includes an intent to restore for infrastructure. funding next year. Other initiatives with Include: $2 million for CA College Guidance Initiative; $3.2 Ongoing funding million for K-12 High Speed Network for broadband infrastructure for schools; $2.1 million for fourth graders to access to CA state parks; $2 million for Technical Assistance Center on inclusive college readiness. Other initiatives with Include: $17 million for Youth Vaping Alternative Prevention One-time funding program; $7 million for curriculum-embedded performance tasks for science; $4 million to research high-quality, data- supported models of hybrid and remote learning; $5 million for Save the Children, after school programs in rural districts;$2.5 million for homeless education technical assistance centers. COLA County Offices of Education operations grant (all three components) receive the 1.07% COLA. LCFF Operations Grant With the COLA, the base amount per county is $881,483 and amount per district in county will be $350,882. Operations grant rates per ADA also will increase, depending on countywide ADA totals. LCFF Alternative Education Grant COLA of 1.07% applied. Base grant: $16,571 Supplemental grant: $5,800 Concentration grant: $5,800 ($2,900 for juvenile court school students) LCFF Add-Ons ▇▇▇’▇ operating at least one Juvenile Court School receive $200,000 and ▇▇▇’▇ with at least one county community school would receive $200,000. No changes to amounts. Support for LEAs COLA applied to LCAP support, with the greater of $24,285 per district or $103,908 per ▇▇▇. Differentiated Assistance Support for districts and charter schools is included. Amount depends on size and numbers of LEAs Parks Access $1.2 million ongoing funding to the Sacramento County Office of Education to enable fourth grade students to access state parks. Math instruction training $20 million one-time funds to a county office to work with the UC Subject Matter Projects and other organizations to develop and provide training for mathematics coaches and teachers.

BUDGET NOTES. Prop. 98 Funding The Proposition 98 funding agreement revises the minimum guarantee for 2022-23 to $97.5 billion but includes an additional $6.2 billion that is included in the base in 2023-24 and going forward. The repayments will be paid back over ten years ($621 million per year), starting in 2026-27. 2022-23 – $97.5 billion, plus $6.2 billion above the minimum for $103.7 billion total (was $110.6) 2023-24 – would be $106.8 billion, but suspended to $98.5 billion (was $107.4) 2024-25 – $115.2 billion, includes For 2023-24, the minimum guarantee is suspended to $98.5 billion and a maintenance factor of $8.3 billion is created. The 2024-25 guarantee of $115.2 billion includes a maintenance factor payment for about half of the suspended funding from 2023-24 ($4.1 billion). $4.1 billion maintenance factor The additional funding for 2023-24 makes Test 2 in effect for that year, with Test 1 operative in the other two years. Prop. 98 is also re-benched for the Universal TK rollout and the implementation of the Arts and Music in Schools (Prop. 28) initiative. K-12 per-pupil funding is projected to be $18,354 from Prop. 98 funds in 2024-25, which is $693 more than the 2023 budget act. Accounting for all sources, it is $24,626 per student. Public School System For 2023-24, $8.4 billion is withdrawn from these The $1.1 billion deposit in 2024-25 is Stabilization Account (PSSSA) reserves, bringing the balance to zero and a deposit of $1.1 billion is included for 2024-25. a discretionary deposit. Local Reserves The 10% cap on local district reserves will not be operative in 2024-25 after the PSSSA is depleted in 2023- 24. The cap is unlikely to be in effect in 2025-26. Prop. 98 Re-benching The Prop. 98 minimum guarantee is “re-benched” to account for the continued rollout of Universal TK and the Arts and Music in Schools initiative funding. COLA The COLA for the state preschool provider rates was suspended for the 2023-24 and 2024-25 fiscal years. Child Nutrition programs receive the 1.07% COLA. Access / Slots Fully funds 11,000 awarded child care expansion slots; revises goal to 200,000 additional slots by 2028. Children with Disabilities At least 5% of funded enrollment must be set aside for children with disabilities; requirement to increase to 10% is repealed. Eligibility Children ages 24 to 35 months allowed with reimbursement rate adjustment at 1.8 allowed, but not required; sunsets on July 1, 2027. Inclusive Early Education Expansion Program $100 million is maintained, proposed cuts are rejected. From General Fund Early Childhood Cuts $550 million planned for 2024-25 for the State Funding could come through the Planning and Preschool, Transitional Kindergarten, Full Day Kindergarten Prop. 2 bond on the November 2024 infrastructure facility grant program. ballot. Universal Transitional TK expansion for 2024-25 offers TK to four-year-olds whose $1.5 billion supports the third year of Kindergarten fifth birthday is between Sept. 2 and June 2, inclusive. Average TK class size of 24 students and classroom ratios of 12 students to 1 adult are required. the UTK expansion. COLA Statutory Cost-of-Living Adjustment (COLA) of 1.07% is fully funded in the 2024-25. Applied to the LCFF and most categorical programs outside the LCFF. Deferrals Two deferrals (June to July) were included in the budget; $3.57 billion was deferred (on paper) from June to July 2024 and $246 million will be deferred from June to July 2025. Local Control Funding Formula (LCFF) The LCFF base grant will increase by the 10.71.07% COLA. The total LCFF funding proposed is about $983 million above the 2023-24 budget act. TK Add-On would also be increased by COLA, for a total of $3,077 per ADA after the COLA is applied. Equity Multiplier This add-on to the LCFF was first funded in 2023-24 with $300 million. The Multiplier is increased by the COLA and some program changes are included: the per site minimum amount of $50,000 will be adjusted by COLA; unspent funds from closed sites will be returned to the state; schools planned for closure in the budget year will not receive funding and district office enrollment will not generate funding. $303.2 million is allocated for 2024- 25. Categorical funding Statutory COLA of 1.07% is applied to most of the remaining categorical programs that are outside of the LCFF. This includes: Adult Education, American Indian Early Childhood Education Program, American Indian Education Centers, Charter School Facility Grant Program, Child Nutrition Program, Mandate Block Grant, Special Education, Youth in ▇▇▇▇▇▇ Care. Adults in Correctional Facilities receive the prior year COLA (8.22%). $89.2 million supports these programs. August Layoff Window Closed For 2024-25, the statute allowing school district to issue August layoffs of certificated and classified staff, when the LCFF is not increased by at least 2%, is suspended. Learning Recovery Total funding level remains at $6.8 billion and requires A minimum of $2 billion must be Emergency Block ▇▇▇▇▇ ▇▇▇▇ to develop a needs assessment to spend remaining funds, through 2027-28. The expenditures will need to be evidence-based and included in LCAPs. Funds may be used for professional development on the Math and English Language Arts frameworks. spent based on needs assessments, per legal settlement. Arts and Music in Prop. 98 is permanently re-benched to include an amount Funding was $938 million for 2023- Schools (Prop. 28) equal to 1% of the K-12 share of the minimum guarantee. Though Prop. 28 allows reductions to the funding when Prop. 98 is suspended, the budget fully funds this program. 24 and $907 million 2024-25. School Facilities Funding Planned funding of $875 million for the School Facility Program and $550 million for the Preschool, TK, and Full- Day Kindergarten Facilities Grant Program is cut. A bond on is expected to provide alternative funding for these programs. $10 billion bond will be on Nov. 2024 ballot. $8.5 billion would go to TK-12 schools and $1.5 billion to community colleges. Nutrition – Universal Meals Ongoing funding is increased by $179.4 million and another additional $120.8 million one-time funds are included to fully fund the universal meals program in 2023-24 and 2024-25. This funding is added to the base funding of $1.6 billion. Expanded Learning ELOP funding is unchanged at $4 billion per year. No cuts and no COLA. Opportunities Program Programmatic changes include providing up to $2000 per (ELOP) student in 2024-25 to LEAs with <75% unduplicated students; allowing funds to be spent on attendance recovery; extending to two years the deadline for expending funds, starting in 2023-24. District will annually declare intent to run the program, starting in 2025-26. Community Schools Funding is maintained. Minor changes adjust set-aside No cuts, no increases. amounts for implementation and extension grants, and prioritize implementation grants starting July 1, 2024. Discriminatory Materials LEAs are prohibited from adopting or approving use of Complaints can be filed by any materials or curriculum that subjects students to unlawful member of the public under Uniform discrimination, with fiscal penalties for violations. Complaint Procedures, or with the State Superintendent of Public Instruction (new EC Sec. 244) Instructional Continuity Statutory changes included in budget package allow LEAs and Attendance to provide attendance recovery opportunities starting in Recovery 2025-26, allowing up to 10 days of additional ADA. LEAs will also include instructional continuity plans in School Safety Plans and if schools close, they will need to certify they have an adopted school safety plan that includes the instructional continuity plans and that they have provided the instruction and engagement as specified or have not due to extenuating circumstances. Educator Workforce / Funding ($25 million, one-time) for training for literacy . Staffing Shortage screening of K-12 students; Golden State Teacher Grant Program funding is continued but amount awarded per student is reduced and funding is prioritized for low-income students and awardees must commit to working in priority schools; funding ($5 million) allocated for holocaust and genocide training for teachers. Zero-Emission / Green Maintains support of $500 million one-tine funds for $375 million for buses; $125 million School Buses greening of school bus fleets. Includes an intent to restore for infrastructure. funding next year. Other initiatives with Include: $2 million for CA College Guidance Initiative; $3.2 Ongoing funding million for K-12 High Speed Network for broadband infrastructure for schools; $2.1 million for fourth graders to access to CA state parks; $2 million for Technical Assistance Center on inclusive college readiness. Other initiatives with Include: $17 million for Youth Vaping Alternative Prevention One-time funding program; $7 million for curriculum-embedded performance tasks for science; $4 million to research high-quality, data- supported models of hybrid and remote learning; $5 million for Save the Children, after school programs in rural districts;$2.5 million for homeless education technical assistance centers. COLA County Offices of Education operations grant (all three components) receive the 1.07% COLA. LCFF Operations Grant With the COLA, the base amount per county is $881,483 and amount per district in county will be $350,882. Operations grant rates per ADA also will increase, depending on countywide ADA totals. LCFF Alternative Education Grant COLA of 1.07% applied. Base grant: $16,571 Supplemental grant: $5,800 Concentration grant: $5,800 ($2,900 for juvenile court school students) LCFF Add-Ons ▇▇▇’▇ operating at least one Juvenile Court School receive $200,000 and ▇▇▇’▇ with at least one county community school would receive $200,000. No changes to amounts. Support for LEAs COLA applied to LCAP support, with the greater of $24,285 per district or $103,908 per ▇▇▇. Differentiated Assistance Support for districts and charter schools is included. Amount depends on size and numbers of LEAs Parks Access $1.2 million ongoing funding to the Sacramento County Office of Education to enable fourth grade students to access state parks. Math instruction training $20 million one-time funds to a county office to work with the UC Subject Matter Projects and other organizations to develop and provide training for mathematics coaches and teachers.