California’s budget deficit is projected to be $31.5 billion according to Governor Newsom’s May Revise. The shortfall is primarily due to the progressive structure of the CA Income Tax. 1% of CA population pays about 50% of the tax revenues and these highest income earners paid less in taxes due to the stock market drops during the 2022 tax year.
Education’s Prop 98 portion of the state budget is down slightly from 2020-21, and expected to remain there through at least 2023-24. However, the COLA has been increased from the January Budget Proposal and is now at 8.22%.
K-12 is receiving extra discretionary LCFF funding, but several of the categoricals will be reduced slightly.
The Governor’s May Revise indicates that Adult Education will receive the full COLA (Higher Education Section, page 29, CCC Categorical Program COLA subheading).
Community Colleges are to also receive the 8.22% COLA in ongoing Prop 98 funding; but a decrease of $2.4 million in ongoing Prop 98 funding to sustain 0.5% enrollment growth.
I am sure we will soon be hearing from the professional organizations this week regarding more specific details. The negotiations between the Governor and the Legislature will also begin.
if you are interested in reviewing the budget on your own please use the following link: