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LAO calls $1.8 billion student support block grant reasonable but urges clearer intent and local discretion
Summary
The governor’s proposed $1.8 billion one‑time student support and professional development block grant drew support from the LAO and from committee members, but analysts and committee members urged clear language on local discretion, reporting and whether funds should be weighted for high‑need students.
The Assembly Budget Subcommittee heard the governor’s proposal for a $1.8 billion one‑time student support and professional development block grant and recommendations from the Legislative Analyst’s Office on Oct. 27, 2025.
Alex Shope of the Department of Finance described the proposal as a per‑ADA discretionary grant to help LEAs address rising costs and statewide priorities such as reading and math professional development, teacher recruitment and dual enrollment expansion.
Ken Capone of the LAO called the proposal "a reasonable proposal" and said districts could use the funds in two principal ways: (1) to continue promising temporary programs funded with pandemic or one‑time federal dollars and (2) to address one‑time fiscal liabilities such as technology upgrades, facility work to accommodate TK, or insurance costs. The LAO recommended three refinements: explicit language guaranteeing local school boards discretion over use; intent language that highlights 1‑time fiscal liabilities (technology, facilities); and a statement that funds count toward outstanding mandate claims where applicable.
Several committee members urged the committee to consider equity weighting rather than a strict per‑ADA distribution so that higher‑need schools receive more funds. Department of Education staff said the department can report on how LEAs use discretionary block grants and has done similar reporting for past grants, and the department supports technical assistance to districts.
Public commenters including the California Teachers Association and California School Employees Association urged that the administration not withhold Proposition 98 funding and supported the block grant as discretionary funding.
Why it matters: The size, distribution method and reporting requirements for this grant will influence district staffing, professional development and services that affect classroom instruction and student supports.
Next steps: The committee will consider the LAO’s recommended refinements — explicit local discretion language, intent for one‑time liabilities, and mandate‑claim guidance — as it evaluates the governor’s proposal.
