The Education Trust–West Responds to Governor Newsom’s 2021-2022 May Budget Revision

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Contact:
Stephanie Ong, [email protected], 415.786.5568

Mariel Matze, [email protected]

In Response to Governor Newsom’s May Revision Budget Proposal for 2021-2022, Brian Rivas, Senior Director of Policy and Government Relations, Issued the Following Statement:

Californians have reason to celebrate the state’s historic budget surplus and the significant increases in funding for public education, from early learning and care to K-12 to higher education. Governor Newsom’s plan to transform public education and the proposed $7 billion investment for Broadband for All have strong potential to tackle long-standing equity issues that have left too many students of color and students from low-income communities on the margins. 

The equity investments in early childhood education will offer our state’s youngest learners a strong start and relief to parents under pressure, especially those with the least access to child care. From universal transitional kindergarten, additional subsidized child care slots, and investment for a child care data system, these steps will make a world of difference to our youngest Californians–and have a lasting positive impact on our state. While these are critical investments, we would have liked to see an increase in reimbursement rates for child care providers, whose industry was decimated during the pandemic. 

In K-12, we applaud the Governor’s commitment to ensuring students with the highest needs are prioritized, which underlies proposed spending on an increase in the Local Control Funding Formula concentration grant for the highest-need schools, expanded learning, community schools, and the significant increase in teacher workforce investments. By allocating resources where they are needed most through proposals like these, California will be equipped to reimagine schools and make transformational changes for the most marginalized students. 

In higher education, we appreciate the increased funding for all higher education segments, with new investments including the expansion of dual enrollment, addressing non-tuition costs including basic needs and housing, and funding for the Student Equity and Achievement Program at community colleges and look forward to seeing them become a reality. We commend the Governor for setting a goal that the vast majority of California’s higher education students will successfully earn their degrees; yet we believe that doing so will require sustainable changes to make college affordable including modernizing the Cal Grant program and investing in our financial aid system.

As the May Revise moves through the State Legislature, we will continue to monitor other priority proposals, most notably the financial aid access proposal to ensure every high school senior completes a Free Application for Federal Student Aid (FAFSA) or California Dream Act Application (CADAA) and the Cradle-to-Career data system. 

About The Education Trust–West 

The Education Trust–West works for educational justice and the high academic achievement of all students at all levels, pre-K through college, in the state of California. We expose opportunity and achievement gaps that separate students of color and low-income students from other youth, and we identify and advocate for the strategies that will forever close those gaps. 

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The Education Trust–West Supports

Transitional Kindergarten (TK): In January, the Governor proposed $250 million in one-time Proposition 98 General Funds, available over multiple years, to provide grants to local educational agencies (LEAs) that offer early access to TK. This would help educational agencies cover up-front costs associated with expanding their TK programs. Additionally, the Governor proposed $50 million in one-time Proposition 98 General Funds to support the preparation of new TK teachers and provide current TK and kindergarten teachers with trainings on inclusive instruction, support for English language learners, social-emotional learning, trauma-informed practices, restorative practices, and mitigating implicit biases.

The Governor’s May Revision includes a vision of universal TK by 2024-25 with a $2.7 billion investment. He proposes repurposing the $250 million in grants from his January proposal toward grants in 2021-22 that incentivize planning and infrastructure to expand TK access to additional 4-year-olds across all LEAs. TK eligibility would expand by three months in 2022-23 and three additional months in 2023-24, culminating in full TK implementation by 2024-25, which would serve 250,000 children total.

Other investments in universal TK include:

• Additional staffing: Investments of $380 million in Proposition 98 General Funds in 2022-23, $740 million in 2024-25, would provide one additional teacher or aide in each TK classroom. This would reduce the current educator to student ratio from 1:24 to 1:12.
• Preschool Learning Foundations: One-time General Funds of $10 million would update the Preschool Learning Foundations, a resource for pre–K teachers that reflects recent research in early childhood development.

While ETW supports universal TK, we also look forward to a TK expansion that would ensure a joyful learning experience for younger 4-year-olds. This age group would benefit from staffing ratio closer to 1:8, building up the workforce with current early educators, and joint professional learning opportunities for preschool, TK, kindergarten, and other elementary teachers and administrators who will soon welcome younger children to their campuses.

TK and Kindergarten Facilities: In January, the Governor proposed $200 million in one-time General Funds for school districts to construct and retrofit existing facilities to support TK and full-day kindergarten programs. The May Revision reduced this amount to $190 million.

California State Preschool Program (CSPP): In the May Revision, The Governor proposes maintaining CSPP’s funding levels, as well as developing and implementing a comprehensive plan in 2022-23 that would help existing CSPP providers transition to serving younger children as more four-year-olds enroll in TK.

Child Care: In January, the Governor proposed creating 4,700 new subsidized child care slots using Proposition 64 cannabis tax revenues.

In the May Revision, the Governor proposes $83 million to add 100,000 subsidized child care slots, as well as an additional 6,500 new slots using Prop 64 cannabis tax revenues. The Governor also proposes:

• $250 million in one-time federal American Rescue Plan Act (ARPA) funds to provide grants for developing and renovating child care facilities, starting with areas considered “child care deserts”,
• $10 million in ARPA funds to help child care resource and referral programs develop new child care facilities and capacity and improve data collection processes, and
• $20 million for a multi-year effort to strengthen quality improvement efforts.

COVID-19-Related Support: In January, the Governor proposed $55 million in one-time General Funds to address the impacts of the pandemic borne by child care providers and the families they serve. The February 2021 pandemic relief package provided $402 million in federal funds, including stipends for subsidized providers and paid closure days.

The May Revision includes a second pandemic relief package of $579 million in one-time Coronavirus Response and Relief Supplemental Appropriation funds (CRRSA), which includes:

• Stipends for subsidized child care and preschool providers,
• Family fee waivers for July 1, 2021 through June 30, 2022,
• $25 million to expand the California Child Care Initiative Project to target “child care deserts” and to build capacity of new licensed family child care homes,
• $10.6 million for early childhood mental health consultation, and
• Extending hold harmless provisions for child care providers.

Child Care Data System: The May Revision includes $4.8 million in General Funds for a child care data system that would meet the needs of families and the workforce. This proposal, which would provide for planning, design, and initial implementation phases, is aligned with the Master Plan for Early Learning and Care, and if done with insights from families and stakeholders, will be critical for the Cradle-2-Career Data System.

Pre–K through 12 Educational Employment Program: In the May Revision, the Governor proposes $65.5 million in one-time Proposition 98 General Funds and $45.6 million in one-time General Funds to develop the Roadmap to Pre–K through 12 Educational Employment Program. This new investment would create a long-term, comprehensive statewide strategy to recruit and develop a diverse and talented educator workforce. With the Governor’s universal TK proposal, this Roadmap is critical to leveraging the existing early educator workforce and their expertise as we develop a pipeline of TK teachers to serve 4-year-olds.

The Education Trust–West Would Like to See

Reimbursement Rates: The child care industry was already on the margins prior to the pandemic; now, as many family child care homes and centers have had to shutter their doors, it has been decimated. ETW would have liked to have seen a long-overdue increase in reimbursement rates for child care providers so they more accurately reflect the actual cost of care.

Increase in Subsidized Child Care Slots: While we welcome the 100,000 additional child care slots, we know that at least 8,500 licensed child care programs in California have shut down since the pandemic began. More subsidized child care slots are needed to revitalize the industry, enable parents to work without also caring for children, and provide high-quality early learning experiences for infants and toddlers.

Other Proposed Investments

Early Interventions: In January, the Governor proposed $300 million in ongoing Proposition 98 General Funds to increase evidence-based services for infants, toddlers, and preschoolers through the Special Education Early Intervention Grant.

In order to address data sharing and disseminate best practices on inclusive settings for 3-, 4-, and 5-year-olds in special education, the Governor proposes $1.2 million in federal IDEA funds in the May Revision to improve coordination between the California Department of Education (CDE), the Department of Social Services (DSS), and LEAs as they transition certain IDEA programs and to convene stakeholder workgroups.

Transition of Child Care and Development Programs: Starting July 1, 2021, child care and nutrition programs will shift from CDE to the DSS, which will align all child care programs within a single department in state government. In the May Revision, the Governor proposes $10.9 million and 79 positions to ensure a whole-child, whole-family approach to child care integration and data development. The Governor also proposes shifting $31.7 million and 185.7 positions from CDE to DSS to administer these programs.

Proposition 98 Funding: In January, the Governor projected a total of $85.8 billion in funding for Proposition 98, which supports K-12 education and community colleges. The May Revision now projects $93.7 billion in Proposition 98 funding, almost $8 billion more that the January Budget.

The Education Trust–West Supports

Local Control Funding Formula (LCFF): In January, the Governor proposed $2 billion for a 3.84 percent cost of living adjustment (COLA) increase for LCFF, bringing total LCFF funding to $64.5 billion. The May Revision proposes a few augmentations to LCFF next year, including:

• An increase to the COLA adjustment to 4.05 percent,
• An additional 1 percent of base funding, equaling $520 million, and
• An increase of $1.1 billion to the LCFF concertation grant or the LCFF grant that goes to LEAs with the highest concentrations of high-need students.

The May Revision proposes a total of $67.9 billion in LCFF funding.

Financial Aid Application Completion: In January, the Governor proposed requiring local educational agencies (LEAs) to confirm that high school seniors complete the Free Application for Student Aid (FAFSA) or California Dream Act Application (CADAA). These are the applications required to access federal and state financial aid. This proposal is unchanged in the May Revision.

Cradle-to-Career Data System: In January, the Governor proposed $15 million to support the continued development of the Cradle-to-Career Data System. This proposal remains unchanged in the May Revision. Proposed funding would provide support and resources for:

• The acquisition, development, and maintenance of the system’s analytical tools, including data storage and querying functions;
• The administration and maintenance of the data system;
• Updating the K-12 California Longitudinal Pupil Achievement Data System (CalPADS) data system software;
• Expanding eTranscript functionality to additional colleges and universities;
• The hiring of management-level data system coordinators at the University of California, California State University, California Student Aid Commission, and California Community Colleges Chancellor’s Office; and
• Governance and operational costs.

The Governor also proposed $3.8 million in ongoing Proposition 98 General Funds to support the California Career Guidance Initiative (CCGI). The CCGI provides K-12 students, families, and high schools with information and data tools to improve college and career planning and will be integrated into the Cradle-to-Career Data System.

Teacher Preparation, Retention, and Training: In January, the Governor proposed a $545 million package for the educator workforce. In the May Revision, the Governor proposes six times this amount at a total of $3.3 billion.

• Workforce Preparation 
  • $550 million over five years for teacher residencies and grow-your-own credentialing programs
  • $500 million for Golden State Teacher Grants that would cover the teacher preparation expenses of 25,000 candidates who commit to working for four years in priority schools and subjects
  • $125 million over five years for the Classified School Employee Teacher Credentialing Program, aimed at elevating over 5,000 classified school staff to credentialed teacher positions
  • $111.1 million for the Roadmap to Pre-K through 12 Educational Employment Program, a recruitment and communications strategy that targets diverse and talented educators
  • $20 million for credentialing fee waivers
  • $15 million to certify teachers to teach computer science

• Retention and Training 
  • $1.5 billion for teacher professional development through the Educator Effectiveness Block Grant
  • $250 million to attract high quality teachers to work in high-poverty schools to work as mentors and other instructional staff
  • $60 million for the Classified School Employee Summer Assistance Program
  • $25 million for administrator and school leader professional development through the 21st Century School Leadership Academy
  • Funding for training and resources for early math, reading, science instruction, computer science, dyslexia, and LGBTQ+ cultural competency

Expanded Learning: In the May Revision, the Governor proposes an initial $1 billion for before-school, after-school, and summer care, which would increase to $5 billion in 2025-26. This expanded learning investment would apply exclusively to LEAs with a concentration of 55 percent or more of the high-need students targeted by LCFF.

Community Schools: In January, the Governor proposed $264.9 million in one-time Proposition 98 General Funds to enable LEAs to expand and create community schools and to coordinate a wide range of services to these schools. The May Revision increases this investment over 10 times with a $3 billion proposed investment over several years. This amount would provide grants for over 1,400 LEAs to convert schools to a community school model that would foster increased engagement within the school community and offer holistic resources to students and families.

School Climate Surveys: In January, the Governor proposed $10 million in one-time Proposition 98 General Funds for county offices of education to provide LEAs information, training, and grants to increase the use of school climate surveys. This proposal remains unchanged in the May Revision.

Student Mental Health: In January, the Governor proposed $400 million to improve student mental health services. The May Revision increases funding to $1 billion to redesign the child behavioral health system to better connect youth with mental health supports. As part of this investment, schools will be better able to provide direct care and to connect students with care from outside providers by partnering with Medi-Cal plans.

Addressing Lost Learning Opportunity: LEAs have already been allocated $4.6 billion to fund additional academic and social emotional supports to address student needs surfacing from the COVID-19 pandemic. In the May Revision, the Governor proposes an additional $2 billion in federal funds and $623 million in state funds to support educational recovery, including high-dosage tutoring.

Other Proposed Investments

Public School System Stabilization Account: The Public School System Stabilization Account (also called the Proposition 98 Rainy Day Fund) was established in 2014 as part of Proposition 2. The Account was created to reduce the impact of sharp declines in state revenues by setting aside funding that can be used to mitigate budget cuts when revenues decrease. In January, the Governor proposed to deposit approximately $3 billion into the fund, based on formulas in state law that require a deposit based on funding levels, growth, inflation, and capital gains over multiple years. Due to higher-than-expected general fund revenues, the May Revision increases this amount to $4.6 billion. This triggers a limit to LEA local reserves.

Deferrals: In lieu of budget cuts, the state sometimes delays or postpones payments to LEAs and repays them when revenues improve. Reductions were anticipated when the 2020 Budget Act was adopted. This created the need to defer LCFF payments in the amount of $1.9 billion in the 2019 budget, which grew to more than $11 billion in the 2020-2021 budget. In January, the Governor proposed paying off the full K-12 deferral in 2019-2020, and $7.3 billion in 2020-2021, leaving a balance of $3.7 billion in 2021-2022. The May Revision pays off all but $2.6 billion in deferrals.

Supplemental Payment: The 2020 Budget Act included a multi-year plan to supplement Proposition 98 and mitigate projected budget cuts. The state’s economy over the past year was stronger than expected, and the anticipated decreases in revenues were avoided. As a result, in January, the Governor proposed removing the supplemental payment from statute along with a one-time supplementary payment to K-14 schools of $2.3 billion in 2021-22 to relieve some of the impacts of COVID. The May Revision proposes eliminating this supplementary payment.

Pension Contributions: In January, the Governor proposed requiring the California State Teachers’ Retirement System (CalSTRS) to apply $820 million to reduce the employer rate from 18.1 percent to approximately 15.92 percent and the California Public Employees’ Retirement System (CalPERS) to apply $330 million to reduce the Schools Pool employer contribution rate from 24.9 percent to 23 percent for 2021-2022. This proposal has been adjusted based on a recommendation from the actuary to 16.92 percent for CalSTRS and 22.91 percent for CalPERS. The May Revision didn’t propose any changes to the investment.

Special Education: In January, the Governor proposed:

• $300 million in ongoing Proposition 98 General Funds for the Special Education Early Intervention Grant to scale up services for infants, toddlers, and preschoolers,
• $5 million in one-time Proposition 98 General Funds to establish professional learning networks to increase LEA capacity to access federal Medi-Cal funds and $250,000 for a lead county office of education to provide guidance for Medi-Cal billing within the statewide system of support, and
• $500,000 in one-time Proposition 98 General Funds for a study to examine certification and oversight of non-public school special education placements.

The May Revision augments the state’s investment in special education by applying a 4.05 percent COLA equaling $117.7 million dollars. The May Revision also mentions the following investments from the federal Individuals with Disabilities Education Act (IDEA):

• $277.7 million for general statewide special education resources going directly to LEAs.
• $15 million for technical assistance and support to LEAs for individualized education programs and to address the effects of the pandemic on students with disabilities.
• $2.3 million for six staff positions within the California Department of Education (CDE) to address special education complaints, perform court-ordered special education monitoring, and to purchase special education monitoring software.
• $1.2 million for one staff position to improve coordination among the CDE, the California Department of Developmental Services, and LEAs to support the transition from IDEA Part C to Part B programs and convene stakeholder workgroups to address data sharing and to share best practices on improving inclusion for three-, four-, and five-year-olds with special needs.

The Education Trust–West is Concerned

Fiscal Accountability: LCFF provides supplemental and concentration grants to LEAs to increase or improve services for English Learners, foster youth, and low-income students. Existing law does not address the use of unspent supplemental and concentration funds. In 2020, ETW co-sponsored AB 1835 to address this issue. AB 1835 would have required LEAs to expend their balance of supplemental and concentration funds to increase or improve services for targeted students in the following year.

Governor Newsom vetoed AB 1835 because it conflicted with spending regulations by requiring LEAs to expend supplemental and concentration funds. This year, the Department of Finance has proposed requiring LEAs to compare planned with actual expenditures of supplemental and concentration funds and when they do not match, use the unused portion the following year. However, it would also codify LEAs’ authority to meet their obligation to targeted students without spending supplemental and concentration funds; these actions are called “qualitative improvements.”

ETW is concerned because the Governor’s proposal would validate and reinforce LEAs’ authority to meet their obligations to targeted students without spending their full allocation of supplemental and concentration funds. Unspent supplemental and concentration funds would revert to the LEA’s general fund. Instead, ETW recommends requiring LEAs to spend their full allocation or document progress toward goals for improving student outcomes without spending these supplemental funds.

Independent Study to Replace Distance Learning: In the May Revision, the Governor proposes discontinuing distance learning and making changes to California’s independent study program to accommodate students and families who prefer to opt out of in-person learning. The changes to independent study would include requiring LEAs to provide access to devices and connectivity, tiered student reengagement strategies, and tracking and recording attendance.

ETW is concerned because there are still many students and families who will not be comfortable with returning to in-person instruction in the fall and, while not perfect, distance learning provides more connection to teachers and other students than independent study would.

Safety Measures for Reopening Schools: In the May Revision, the Governor proposes $2 billion from Proposition 98 for COVID-19 health and safety measures like testing and vaccine initiatives, enhanced cleaning, personal protective equipment, and improved ventilation.

ETW is concerned because this allocation would come from Proposition 98 funds that are intended to provide educational services to students. The funding for safety measures should come from the federal American Rescue Plan funding intended for these purposes.

The Education Trust–West Supports

Overall Higher Education funding: In January, the Governor proposed $36.1 billion in total higher education funding. This is a growth of $951 million in comparison to the revised 2020-21 expenditures. The May Revision increases this investment by $12.6 billion for a total of $48.7 billion.

University of California (UC)

Eliminating Previous Budget Reductions: The May Revision provides $302.4 million in General Funds to the UC to offset reductions applied to the UC in the 2020 Budget Act, starting in fiscal year 2021-22.

Base Resources: In January, the Governor proposed a total increase of $103.9 million in ongoing General Funds with the expectation that the UC freeze tuition and fees in 2021-22, reduce equity gaps, commit to aligning student learning objectives with workforce needs, adopt policies for online courses and program offerings, and create new dual admission pathways. The May Revision adds approximately $69.3 million in ongoing General Funds to support the University’s changing operational and programmatic needs. This augmentation results in a five percent base increase.

Student Basic Needs, Digital Equity, & Mental Health: In January, the Governor proposed an increase of $15 million in ongoing General Funds for greater access to devices and high-speed internet connectivity as well as increased student mental health resources. This proposal remains unchanged in the May Revision.

Emergency Student Financial Assistance: In January, the Governor proposed an increase of $15 million in one-time General Funds to support emergency financial assistance grants for full-time low-income students, students who were previously working full-time, or an equivalent of the two. This proposal remains unchanged in the May Revision.

Culturally Competent Professional Development: In January, the Governor proposed an increase of $5 million in one-time General Funds to provide culturally competent professional development for UC faculty by leveraging technology to improve learning outcomes. This proposal remains unchanged in the May Revision.

California State University (CSU)

Eliminating Previous Budget Reductions: The May Revision provides the CSU $299 million in General Funds to offset the reductions applied to the CSU in the 2020 Budget Act, starting in fiscal year 2021-22.

Base Resources: In January, the Governor proposed an increase of $111.5 million in ongoing General Funds with the expectation that the CSU freeze tuition and fees in 2021-22, reduce equity gaps, commit to aligning student learning objectives with workforce needs, adopt policies for online courses and program offerings, and create new dual admission pathways. The May Revision adds an additional $74.4 million ongoing General Fund to the CSU’s base funding. This augmentation results in a five percent ongoing base increase beginning in 2021-22.

Emergency Student Financial Assistance: In January, the Governor proposed an increase of $30 million in one-time General Funds to support emergency financial assistance grants for full-time, low-income students and other students who were previously working full-time, or an equivalent of the two. This proposal remains unchanged in the May Revision.

Addressing the Digital Divide & Mental Health: In January, the Governor proposed an increase of $15 million in ongoing General Funds for greater access to devices and high-speed internet connectivity, as well as increased student mental health resources. This proposal remains unchanged in the May Revision.

Corporation for Education Network Initiatives in California (CENIC): In January, the Governor proposed an increase of $246,000 in ongoing General Funds to pay for increased CENIC-provided broadband costs. This proposal remains unchanged in the May Revision.

Culturally Competent Professional Development: In January, the Governor proposed $10 million in one-time General Funds to provide culturally competent professional development for CSU faculty by leveraging technology to improve learning outcomes. This proposal remains unchanged in the May Revision.

Basic Needs Initiative Component of the Graduation Initiative 2025: In January, the Governor proposed $15 million in ongoing General Funds to support students experiencing food and housing insecurity, financial distress, and other challenges that could disrupt their academic success. This will sustain and expand support for the Basic Needs Initiative component of Graduation Initiative 2025. This proposal remains unchanged in the May Revision.

California Community Colleges (CCC)

Retention and Enrollment Strategies: The May Revision provides an increase of $100 million in one-time Proposition 98 General Funds to support efforts to bolster CCC student retention rates and enrollment, consistent with funds approved for this purpose pursuant to Chapter 4, Statutes of 2021 (AB 85).

Emergency Financial Assistance: In January, the Governor proposed $150 million in one-time Proposition 98 General Funds for emergency financial assistance for full-time, low-income community college students and other students who were previously working full-time, or the equivalent who demonstrate emergency financial need and earned at least a 2.0 GPA in one of their last three semesters or four quarters. The May Revision changed eligibility for this grant, students have to be low-income or have lost employment, enrolled in at least 6 units, and earned a 2.0 GPA in the previous three semesters.

Basic Needs: In January, the Governor proposed $100 million in one-time Proposition 98 General Funds to address food and housing insecurity. The May Revision provides an increase of $30 million in ongoing Proposition 98 General Funds for colleges to establish basic needs centers and hire basic needs coordinators.

Addressing the Digital Divide & Mental Health: In January, the Governor proposed $30 million in ongoing Proposition 98 General Funds to support student technological access by prioritizing electronic devices and high-speed internet connectivity. This also includes increased mental health resources. This proposal remains unchanged in the May Revision.

Culturally Competent Professional Development: In January, the Governor proposed $20 million in one-time Proposition 98 General Funds for a systemwide effort to bring culturally competent online professional development to CCC faculty by leveraging technology to improve learning outcomes. This proposal remains unchanged in the May Revision.

Online Platforms for Services: In January, the Governor proposed $10.6 million in ongoing Proposition 98 General Funds to support the continuity quality distance learning through online tutoring, counseling, and student support services like mental health services. This proposal remains unchanged in the May Revision.

Zero-Textbook-Cost Degrees: In January, the Governor proposed $15 million in one-time Proposition 98 General Funds to develop and implement zero-textbook-cost degrees using open educational resources. The May Revision provides an increase of $100 million in one-time Proposition 98 General Funds for a total of $115 million one-time Proposition 98 General Funds for this development.

Dual Enrollment Investments: In January, the Governor proposed $2.5 million in one-time Proposition 98 General Funds for community colleges to provide instructional materials for dual enrollment students. The May Revision builds on this proposal by adding $75 million in one-time Proposition 98 General Fund to expand new and existing College and Career Access Pathway (CCAP) agreements between school districts and community colleges.

AB 1460 Implementation and Anti-Racism Initiatives: In January, the Governor proposed $600,000 in one-time Proposition 98 General Funds to support the implementation of the provisions in Chapter 32, Statutes of 2020 (AB 1460) as well as other systemwide anti-racism initiatives. This proposal remains unchanged in the May Revision.

CENIC Broadband: In January, the Governor proposed $8 million in ongoing Proposition 98 General Funds for increased CENIC-provided broadband costs. This proposal remains unchanged in the May Revision.

California Student Aid Commission (CSAC)

Golden State Teacher Grant Program: In January, the Governor proposed $100 million in one-time General Funds to provide grants to students enrolled in a teacher preparation program who commit to teaching in a high-need field at school sites with the highest rates of non-credentialed or waiver teachers. The May Revision provides an increase of $400 million in one-time General Funds for a total of $500 million in one-time General Funds for the Golden State Teacher Grant Program.

Summer Financial Aid Program: In January, the Governor proposed shifting the suspension date for the UC and CSU Summer Financial Aid program from December 31, 2021 to December 31, 2022. The May Revision makes summer financial aid resources for the UC and CSU permanent, which would help many students complete their degrees on time.

Increased Competitive Cal Grants: In January, the Governor proposed an increase of approximately $35 million in ongoing General Funds to add 9,000 Competitive Cal Grant awards, increasing the total number of awards to 50,000. This proposal remains unchanged in the May Revision.

Restoring Cal Grant A Eligibility During the Pandemic: The Governor proposes $58.2 million in ongoing General Funds to restore Cal Grant A eligibility for students who became ineligible as a result of a change in their living status due to the pandemic. The May Revision reduces this allocation to a total of $43.4 million for 2020-21.

The Education Trust–West Would Like to See

Financial Aid Modernization & Investment: ETW would have liked to see an indication from the Governor that he is committed to modernizing and investing in the Cal Grant Equity Framework as proposed by the California Student Aid Commission. The Cal Grant Equity Framework would remove barriers to financial aid created by age, time out of high school, and GPA, making thousands of students eligible for financial aid, while also streamlining state financial aid to reflect the needs of students at their respective segments.

Student Academic Preparation and Educational Partnerships (SAPEP): ETW would have liked to see an ongoing $20 million increase in funding for SAPEP program. SAPEP conducts outreach, recruitment, and retention of students from historically underrepresented populations, especially those who come from socioeconomically disadvantaged backgrounds, for whom English is their second language, and those who are first-generation college students.

Other Proposed Investments

Learning-Aligned Employment: The May Revision includes $1 billion in one-time General Funds, split evenly between fiscal years 2021-22 and 2022-23, to establish the Learning-Aligned Employment program, which would promote learning-aligned, long-term career development for UC, CSU, and CCC students.

Regional K-16 Education Collaboratives: The May Revision includes $250 million in one-time General Funds for a grant program for regional K-16 collaboratives. The Office of Planning and Research will award grants to 5– 8 regional collaboratives; they must include at least one institution from all three segments and give consideration to regional workforce needs, amongst other provisions.

Student Housing: The May Revision includes $4 billion in one-time General Funds, split evenly between fiscal years 2021-22 and 2022-23, to establish a low-cost student housing grant program to expand the availability of affordable student housing. The California School Finance Authority will award grants to the UC, CSU, and CCCs to build student housing or acquire commercial properties that can be transformed. They will ensure housing is either free or offered at reduced prices, prioritize newly available units for low-income and under-represented students, and require student tenants to take an average of 15 degree-applicable units per semester.

University of California (UC)

Deferred Maintenance: In January, the Governor proposed an increase of $175 million in one-time General Funds to address deferred maintenance and energy efficiency at UC campuses. The May Revision adds an additional $150 million in one-time American Rescue Plan Act (ARPA) funds to address deferred maintenance and energy efficiency projects on UC campuses.

California Institute for Science and Innovation: In January, the Governor proposed an increase of $20 million in one-time General Funds over a five-year period for four science and innovation institutes, student stipends, connections between student workers with industry employers, and research that partners with industry to align educational programs with workforce needs. This proposal remains unchanged in the May Revision.

UC Subject Matter Projects: In January, the Governor proposed an increase of $7 million in one-time General Funds for the UC Subject Matter Projects that provides K-12 teacher professional development regarding learning loss mitigation and ethnic studies. This proposal remains unchanged in the May Revision.

Graduate Medical Education: The May Revision proposes a decrease of $1.6 million in ongoing General Funds to maintain the Proposition 56 Graduate Medical Education Program at $40 million.

California State University (CSU)

Deferred Maintenance: In January, the Governor proposed an increase of $175 million in one-time General Funds to address deferred maintenance at CSU campuses. The May Revision adds an additional $150 million in one-time ARPA funds to address deferred maintenance and energy efficiency projects at CSU campuses.

Transitioning Humboldt State University to a Polytechnical University: The May Revision includes $433 million in one-time General Funds to support a capital project—including renovating science and laboratory facilities and enhancing computing and telecommunications infrastructure—as the campus transitions to a polytechnic university. Additionally, the May Revision provides $25 million ongoing in General Funds to support the additional academic programs that would be offered under Humboldt State University’s polytechnic designation, such as cyber security and technology, wildlife management, and climate resilience.

CSU Stanislaus, Stockton Campus: In January, the Governor proposed an increase of $1 million in ongoing General Funds to increase full-time equivalent students at this campus by 115 students. This proposal remains unchanged in the May Revision.

CSU Northridge Center for Equity in Innovation and Technology: The May Revision includes $25 million one-time in General Funds to support construction of the CSU Northridge Center for Equity in Innovation and Technology.

California Community Colleges (CCC)

Cost-of-Living-Adjustment: In January, the Governor proposed $111.1 million in ongoing Proposition 98 General Funds to provide a 1.5 percent cost-of-living adjustment. The May Revision adds an additional $185.4 million in ongoing Proposition 98 General Funds to reflect a compounded cost-of-living adjustment of 4.05 percent.

Enrollment Growth: In January, the Governor proposed $23.1 million in ongoing Proposition 98 General Funds to account for 0.5 percent enrollment growth. This proposal remains unchanged in the May Revision.

Deferrals: In January, the Governor proposed $1.1 billion in Proposition 98 General Funds to reduce apportionment deferrals for the Student-Centered Funding Formula (SCFF), leaving a balance of $326.5 million for 2021-22. The May Revision pays off the remaining balance and eliminates all deferrals.

Deferred Maintenance: The May Revision provides $314.1 million in one-time Proposition 98 General Funds and $250 million in one-time ARPA funds to address deferred maintenance.

COVID-19 Response Block Grant: Due to higher-than-expected revenue, the May Revision provides $50 million in one-time Proposition 98 General Funds to assist community colleges with responding to the COVID-19 pandemic and transitioning back to in-person education.

Student Success Completion Grant: Due to higher-than-expected revenue, the May Revision provides $27.2 million in ongoing Proposition 98 General Funds to support revised estimates of students eligible for the program.

Guided Pathways: Due to higher-than-expected revenue, the May Revision provides $150 million in one-time Proposition 98 General Funds to further support colleges’ efforts to implement Guided Pathways programs.

English as a Second Language (ESL): Due to higher-than-expected revenue, the May Revision provides $50 million in ongoing Proposition 98 General Funds for expanding vocational training opportunities and ESL programs. The Administration expects that these programs will be linked to pathways enabling ESL students to subsequently enroll in certificate, credential, or degree programs.

Student Equity and Achievement Program: Due to higher-than-expected revenue, the May Revision provides approximately $23.8 million in ongoing Proposition 98 General Funds to increase program funding by five percent.

Dreamer Resource Liaisons: Due to higher-than-expected revenue, the May Revision provides $5.8 million in ongoing Proposition 98 General Funds to further support Dreamer Resource Liaisons and student support services for immigrant students, including undocumented students in community colleges, pursuant to Chapter 788, Statutes of 2019 (AB 1645).

Work-Based Learning: Due to higher-than-expected revenue, the May Revision provides $10 million in one-time Proposition 98 General Funds to develop work-based learning opportunities in cloud computing and zero emissions and supply chain fields.

Competency-Based Education Pilot: Due to higher-than-expected revenue, the May Revision provides $10 million in one-time Proposition 98 General Funds to pilot competency-based education at select community colleges.

CCC Registry Modernization: Due to higher-than-expected revenue, the May Revision provides $1 million in one-time Proposition 98 General Funds to support the modernization of the CCC Registry, an online database of job opportunities for the California Community Colleges.

Program Pathways Technology: Due to higher-than-expected revenue, the May Revision provides $10 million in ongoing Proposition 98 General Funds for systemwide software that visualizes and clearly maps out curricular pathways, helping students choose and stay on their pathway. It would also support the long-term development and integration of a common application platform within the proposed Cradle-to Career Data system.

Common Course Numbering: Due to higher-than-expected revenue, the May Revision provides $10 million in one-time Proposition 98 General Funds to plan for and begin developing a common course numbering system throughout the community college system, which should better enable students to identify the courses needed to complete a degree or certificate or transfer to a four-year institution. It would also support the long-term development and integration of a common application platform within the proposed Cradle-to Career Data system.

California Student Aid Commission (CSAC)

Education and Training Support Grants for Displaced Workers: The May Revision includes $1 billion in one-time ARPA funds to establish a one-time grant program to support displaced workers who are seeking reskilling and up-skilling, pursuing educational opportunities, or starting a business. These funds would:

• Authorize the Student Aid Commission to disseminate the funds to higher education segments and UC, CSU, and CCC campuses to receive these funds and grant them to individuals displaced from their employment due the COVID-19 pandemic.
• Allow recipients to use their grants to cover the costs of postsecondary programs, high-quality training programs, or to start a business for which the recipient has filed for a business license and developed a business plan.
• Require at least half of the amount appropriated for this purpose to be used for grants to individuals who are caring for a dependent child.
• Encourage UC, CSU, and CCC campuses to match grant funds used at their institutions, which could include UC and CSU extension programs, with institutional funds.
• Specify that the grant amounts will be determined by the Student Aid Commission, with a minimum amount of $1,000 per grant.

Former & Current Foster Youth Access Award: In January, the Governor proposed an increase of approximately $20 million in ongoing General Funds to increase access awards for all former or current foster youth. Under this proposal, eligible new or renewal Cal Grant A and B awards will increase to $6,000 and Cal Grant C awards will increase to $4,000. The May Revision decreases this allocation by approximately $5.1 million in ongoing General Funds given revised estimates of foster youth who would qualify for a supplemental access award funding.