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Governor’s budget proposes to eliminate K–12 deferrals; LAO urges paying off earlier if possible

2510673 · March 5, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Administration briefed the committee on remaining K–12 deferrals created in prior budgets and said the governor’s budget pays those deferrals; the LAO recommended eliminating them as a matter of fiscal hygiene and noted the legislature could accelerate payoff by acting in early April.

Department of Finance and the Legislative Analyst’s Office described prior‑year Proposition 98 deferrals and the governor’s plan to eliminate them during the budget window.

Alex Shope told the committee that deferrals created in the 2022–23 and 2023–24 budgets total roughly $2.6 billion (2022–23) and about $4.0 billion (2023–24), split across LCFF and…

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