Prop 98 minimum school funding guarantee has jumped almost 32%: FINAL BUDGET REPORT NOTES BIG SCHOOL SPENDING UPTURN
BY TOM CHORNEAU | SI&A CABINET REPORT :: THE ESSENTIAL RESOURCE FOR SUPERINTENDENTS AND THE CABINET HTTP://BIT.LY/1MJL3QW
October 20, 2015(Calif.) :: The Proposition 98 minimum school funding guarantee has jumped almost 32 percent from the depth of the recession to surpass $68.4 billion for the 2015-16 fiscal year, according to a new report from the nonpartisan Legislative Analyst.
The gains, which have not gone unnoticed as both the state and national economies have rebounded dramatically in the past four years, are nonetheless impressive after so many years of struggle.
Adjustments made to the guarantee as a result of final tallies from tax collections assigned to prior years resulted in a $612 million increase to the 2013-14 budget year and a whopping $5.4 billion designated to last year’s budget.
A large share of the income can be attributed to higher income taxes being paid by the state’s biggest wage earners – a plan adopted by voters in 2012 – but capital gains taxes paid by Wall Street investors in the past two years have also been a major source of additional state revenue.
In addition, the LAO noted that the state has paid down a big chunk of the past debt owed schools, much of it generated during the five-year recession.
The Proposition 98 “maintenance factor” – a liability to the state when the funding guarantee slips below a long-range benchmark – is expected to fall to just $743 million at the end of 2014-15, the smallest it has been almost a decade.
Rising revenue has also allowed the state to pay down debt owed on K-14 mandates – an expense created by legislation that requires schools to perform new duties that are otherwise not covered in the budget. The 2015-16 budget includes $3.8 billion for mandate reimbursement that goes to both K-12 schools and community colleges.
A $500 million, one-time grant to improve teacher training and support is being distributed to school districts, county offices of education and charter schools based on the number of 4LAKids - some of the news that doesn't fit: Prop 98 minimum school funding guarantee has jumped almost 32%: FINAL BUDGET REPORT NOTES BIG SCHOOL SPENDING UPTURN:
