May Revision funds teacher pipeline, literacy and facilities priorities; LAO and CDE offer competing recommendations

The Senate Budget Subcommittee No. 1 on Education reviewed a set of May Revision proposals aimed at the teacher pipeline, literacy professional development and school facilities funding.

Student teacher stipends

Jody Lieberman, Department of Finance, described a new proposal that replaces a loan‑repayment idea with a stipend program. The May Revision would provide $100 million one‑time Proposition 98 general fund to Kern County Superintendent of Schools to administer a stipend program that pays $10,000 to eligible student‑teachers who complete at least 500 hours of student teaching. The proposal allows Kern County to reserve up to 2% of the appropriation for administration and requires annual reporting to the Legislature and Department of Finance.

Literacy and coaching investments

The May Revision proposes $200 million one‑time for evidence‑based professional learning aligned with the English language arts and English language development framework and an additional proposal for literacy and math coaches. Jody Lieberman told the committee the literacy professional development language is modeled on prior legislation (AB 1454) and the state board would post approved programs and guidance. The California Department of Education testified that literacy is a top priority and supported the PD investment and the networks intended to deliver training and screening tools.

Commission on Teacher Credentialing and credentialing workload

Finance proposed modest augmentations for the Commission on Teacher Credentialing to address workload and increased legal costs: $1.5 million (Teacher Credentials Fund) and seven positions to support IT and administrative updates, plus $800,000 for increased contract legal costs tied to litigation and Office of Administrative Hearings fees.

School facilities and disaster assistance

The May Revision proposes reverting unexpended one‑time balances from the 2023 Budget Act and using $177.5 million one‑time general fund for TK–12 school facility construction through the Office of Public School Construction. The subcommittee also heard that Prop 2 (2024) disaster assistance remains a potential source of emergency school facility funding for fire‑impacted districts and that FEMA public assistance could cover operational testing costs, although FEMA coverage is uncertain and would depend on federal actions.

LAO and CDE perspectives

The Legislative Analyst’s Office recommended rejecting the student‑teacher stipend proposal, saying the LAO finds limited evidence the program will expand the supply of teachers and raised concerns that it is not sufficiently targeted to subjects or schools with the greatest shortages. The LAO recommended rejecting the math and literacy coaches proposal as currently drafted and instead increasing the discretionary block grant so districts can apply funding to local priorities.

The California Department of Education supported literacy PD funding, the literacy and math networks, and the 1‑time funds for screening supports, and urged preserving school‑meals and child‑nutrition supports tied to federal draws. CDE also noted operational impacts from state cuts to its operations budget and asked the Legislature to consider reporting burdens when approving new programs.

What the subcommittee will do next

Members asked follow‑up questions about targeting, reporting requirements, whether stipend and Golden State Teacher Grant programs could be combined given different fund sources, and how the state will assist districts with long‑term disaster recovery. Subcommittee members signaled further discussions in budget negotiations and requested written reports and clarifications on administrative allocations and program reporting requirements.

Ending: No formal action was taken; staff will carry these issues into the budget negotiation process.