Assembly panel reviews LCFF funding, COLA assumptions and proposal to penalize districts that miss LCAP deadline

The California Assembly Budget Subcommittee No. 3 on Education Finance reviewed the Governor’s budget proposals for the Local Control Funding Formula (LCFF) and related policies, hearing presentations from the Department of Finance, the Legislative Analyst’s Office (LAO) and the California Department of Education. Committee Chair Alvarez opened the hearing and asked panelists to explain LCFF mechanics, cost-of-living adjustments and a proposed trailer-bill penalty tied to Local Control and Accountability Plan deadlines.

The Department of Finance’s Katie Lagomarcino described LCFF as the main source of unrestricted funding for local educational agencies, distributed on a per-student basis and weighted for low-income students, English learners and foster youth. “The bulk of unrestricted funding for local educational agencies is provided through the local control funding formula and is distributed based on the number of students served,” Lagomarcino said. The department said the budget assumes a 2.43% statutory cost-of-living adjustment (COLA) and projects total LCFF funding of roughly $83.4 billion in 2025–26, including adjustments for transitional kindergarten implementation and transportation.

Hugo Solis Galena of…