Governor Newsom proposes funding and staffing increases for Cal Kids program

In a pivotal meeting held on May 6, 2025, California's Assembly Budget Subcommittee No. 3 on Education Finance delved into the future of the Cal Kids program, a state initiative aimed at helping families save for higher education. The program, which automatically provides college savings accounts to newborns and low-income public school students, has already enrolled over five million children since its launch in 2022.

Amin Singh from the Department of Finance presented the Governor's budget proposal, which seeks to allocate $566,000 in ongoing general funds to support three permanent positions within the ScholarShare Investment Board, the agency responsible for administering Cal Kids. This funding is crucial for addressing existing workload challenges, particularly in customer service and outreach efforts.

Natalie Gonzalez from the Legislative Analyst Office recommended approving two of the proposed staff positions but expressed reservations about a third managerial position focused on marketing. She highlighted that a significant marketing campaign, costing $7.5 million over two years, is already underway, suggesting that the need for additional marketing staff should be reassessed after the campaign's completion.

Cassandra de Benedetto, the new Executive Director of the ScholarShare Investment Board, emphasized the importance of expanding outreach efforts to increase participation in the program. She noted that nearly 600,000 students and families have claimed scholarships, with over $45 million distributed to help cover educational expenses. De Benedetto urged the subcommittee to support the budget proposal to ensure the program's continued success and to implement new legislation aimed at supporting children entering the foster care system.

The discussion also touched on the effectiveness of current marketing strategies, particularly in reaching underserved communities. Members of the subcommittee expressed concerns about the balance between managerial and staff positions, emphasizing the need for resources to directly benefit students rather than administrative overhead.

As the meeting concluded, the subcommittee members recognized the potential of the Cal Kids program to transform educational opportunities for California's youth. With a goal of one million scholarship claims by the end of 2025, the urgency for additional resources and strategic outreach remains clear. The outcome of this budget proposal could significantly impact the future of educational savings for countless families across the state.