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To account for the anticipated shortfall in the upcoming budget year, the governor proposed that the state draw from reserves, borrow, make reductions, and defer some payments next year.
Impact on Schools: Schools are guaranteed a minimum percentage of the overall state budget every year. Because of the anticipated shortfall, schools could face nearly $12 billion in cuts, but Newsom does not propose any new cuts or deferrals for K-12 education in his current budget. That is good news, but it could change in his May revision and again before the final budget is adopted in June.
The bad news is that the governor proposes a COLA (Cost of Living Adjustment) that is much smaller than it has been in recent years.
Proposed COLA:
24/25: 0.76%
25/26: 2.73%
COLA is only applied to funds received through the Local Control Funding Formula (LCFF) and not to local, federal, or other state funds that make up our districts' revenue.
In May, Newsom will release his budget revision, and on June 30, the final state budget will be adopted. Between now and then, this could all change. So we don't have the full story yet.
Read about how the current state budget proposal impacts our local schools in the next chapter of this series.
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