Governor Newsom proposes funding increase for California's Cal Kids savings program

The Assembly Budget Subcommittee No. 3 on Education Finance convened on May 6, 2025, to discuss the Governor's budget proposal for the California Kids (Cal Kids) investment development savings program. The meeting featured presentations from the Department of Finance, the Legislative Analyst Office, and the ScholarShare Investment Board.

Amin Singh from the Department of Finance introduced the proposal, which seeks to allocate $566,000 in ongoing general funds to support three permanent positions within the Cal Kids program. This initiative aims to enhance the administration and implementation of the program, which is overseen by the ScholarShare Investment Board.

Natalie Gonzales from the Legislative Analyst Office recommended the approval of two staff positions to address existing workload challenges, particularly in customer service, outreach, and data management. However, she advised against the approval of a manager position focused on marketing and outreach, citing that a significant marketing campaign is already underway, costing $7.5 million over two years. Gonzales suggested revisiting the need for this position after the completion of the current marketing efforts.

Cassandra de Benedetto, the Executive Director of the ScholarShare Investment Board, provided an overview of the Cal Kids program, which was launched in 2022. The program automatically provides college savings accounts to all newborns born in California after July 1, 2022, and to low-income public school students. To date, over 5 million children have been enrolled, with significant funds distributed to support education-related expenses.

De Benedetto emphasized the importance of increasing participation and awareness of the program, highlighting recent outreach efforts, including a paid media campaign and partnerships with schools and community organizations. She noted a 71% increase in website traffic from a recent texting campaign and expressed the need for additional resources to meet the goal of 1 million scholarship claims by the end of 2025.

The meeting concluded with a reminder of the importance of continued support for the Cal Kids program, particularly in light of new legislation aimed at expanding financial support for children entering the foster care system. The subcommittee acknowledged the challenges faced by the program and the necessity of additional staff and resources to ensure its success.