In a significant development for education funding, the governor and legislature have reached an agreement on the state budget that prioritizes K-12 education. The budget includes a cost-of-living adjustment (COLA) of 1.07% and allocates $6 billion to the Proposition 98 guarantee for the 2022-2023 fiscal year, avoiding previous budgetary maneuvers.

For the 2023-2024 fiscal year, the Proposition 98 guarantee is set to increase to $106.8 billion, although it will be suspended to $98.5 billion, with plans for future payments. The budget also incorporates short-term deferrals, which are not expected to have a significant impact.

A notable provision in the budget stipulates that if tax deadlines are extended in the future, adjustments will be made to the budget to reflect actual tax revenue received post-enactment. This aims to prevent the need for budgetary maneuvers that have occurred in the past.

The projected enrollment for K-12 education in the 2024-2025 school year is estimated at 38,364 students, with a general fund revenue projection of $735.5 million and expenditures of $770 million. Notably, 73.2% of funding comes from the local funding formula, with 87.2% of expenditures directed towards student and classroom support.

The board unanimously approved the 2024-2025 budget, with members expressing appreciation for the clarity provided in budget presentations. The finalized budget details will be shared in the upcoming interim report in December.