The May Revision retooled a previously proposed teacher loan repayment program into a $100,000,000 one‑time student‑teacher stipend program. Under the proposal, Kern County Superintendent of Schools would serve as the administrative entity and distribute $10,000 stipends to eligible candidates who complete 500 hours of student teaching; up to 2% of the appropriation may be reserved for administration and outreach.

Department of Finance staff said eligible candidates include those enrolled in programs for preliminary multiple or single subject credentials, education specialist credentials and certain early childhood credentials. Kern County would collect participant information and submit reports to the Legislature and Department of Finance.

Separately, Finance noted the Golden State Teacher Grant Program — previously funded with a five‑year $500 million allocation — would receive supplemental one‑time funding in the May Revision (an additional $50 million augmentation plus carryover), intended to support teacher preparation and recruitment. The administration described the Golden State augmentation as one‑time funding to reach more participants; Department of Finance estimated the additional $50 million funds about 5,000 awards at $10,000 each.

The Legislative Analyst’s Office recommended rejecting the Golden State change and the student‑teacher stipend proposal as currently structured. LAO analysts said the earlier loan repayment approach lacked evidence of effectiveness at increasing teacher recruitment in shortage areas and was not well targeted to subject or geographic shortage needs. The LAO recommended that, in a tight fiscal environment, the Legislature prioritize targeted investments or expand discretionary block grants districts could use locally.

Why it matters: committee members and advocates stressed the persistent teacher shortage and called the stipend idea a way to reduce barriers for candidate teachers during an expensive student‑teaching period. Supporters said direct stipends ease financial strain for candidates and may improve teacher entry and retention; the LAO asked for better targeting to high‑need districts, subjects, or pathways if the Legislature chooses to fund the proposal.

Implementation details and uncertainties: the stipend plan would be administered centrally by Kern County with statewide outreach. Finance said the stipend is one‑time funding but open to being made ongoing if future resources permit. The LAO and several members asked whether prioritization or service commitments (for example, prioritizing hires who commit to serve in high‑need schools) could be added.

Ending: The subcommittee asked department staff to continue consultations on program design, and several members signaled interest in identifying targeting criteria or other guardrails to maximize impact if the stipend and Golden State augmentations are retained in the final budget.