Panel considers partial repayment to learning recovery emergency block grant; LAO urges deadline extension

The subcommittee heard from the Department of Finance, the Legislative Analyst's Office and the Department of Education on the governor's proposal to partially restore delayed payments to the Learning Recovery Emergency Block Grant. "The governor's budget includes $378,600,000 one-time Proposition 98 general fund for a planned investment in the learning recovery emergency block grant," said Hugo Solis Galena, Department of Finance. The department said the $378.6 million is the first of three delayed payments tied to a previous $1.1 billion reduction.

The Legislative Analyst's Office reported on district spending of earlier allotments: "Of the $6,800,000,000 that districts have received for this grant, the interim spending reports show that districts have spent $1,600,000,000 through 23–24," said Ken Kipan of the LAO. The LAO described the mix of activities funded locally — additional instructional time, tutoring, staff and teacher training — and recommended the committee adopt the proposed restoration while extending the June 30, 2028 expenditure deadline by at least one year to accommodate local planning.

Why it matters: Districts received large federal and state one-time allocations after the COVID-19 pandemic. Committee members questioned what demonstrable outcomes exist for the billions spent and whether expenditures tied to the block grant are sustaining recovery gains. LAO and CDE witnesses said much of the federal money had been spent first (driven by federal deadlines) and that reporting and needs-assessment requirements enacted in 2024 should improve transparency going forward.

Key details: - Funding history: The 2021 budget act initially appropriated approximately $7.9 billion for the recovery block grant; $1.1 billion was delayed. The administration proposes restoring the first $378.6 million installment. - Spending to date: LAO told the committee districts had reported roughly $1.6 billion in spending through 2023–24 on the state grant portion, and districts significantly accelerated spending in 2024–25 once federal funds were used down. - LAO recommendation: Adopt the governor's $378.6 million but extend the expenditure deadline (LAO recommended at least a one-year extension beyond June 30, 2028) to reflect longer local planning processes and the timing of delayed installments.

Discussion and next steps: Committee members pressed agencies for evidence that the funds had yielded achievement gains. LAO said outcome measurement is limited because much of the funding was only recently spent and additional local needs-assessment reporting required under 2024 trailer-bill language will yield better local-level data. The panel held the item open for further consideration.