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Subcommittee hears LCFF technical updates: smaller COLA, TK staffing questions and ADA timing concerns
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Summary
Department of Finance and the Legislative Analyst discussed Local Control Funding Formula (LCFF) projections, noting a slightly lower COLA estimate than the governor’s proposal, questions about transitional kindergarten (TK) staffing costs, and attendance data timing that could alter 2024‑25 and 2025‑26 cost estimates.
Officials from the Department of Finance, Legislative Analyst’s Office and the California Department of Education briefed the Senate Budget Subcommittee No. 1 on Education on March 13 on technical aspects of the Local Control Funding Formula (LCFF) and related cost drivers.
DOF and CDE overview
Katie Lago Marcino of the Department of Finance reviewed the LCFF framework and the governor’s proposed increases: roughly $2.5 billion ongoing for LCFF to reflect a 2.43% cost‑of‑living adjustment (COLA) and ADA adjustments, an additional $1.8 billion ongoing for TK expansion and class‑size/ratio reductions, and repayment of budgetary deferrals adopted in 2024. Lago Marcino said total LCFF entitlements for K–12 would be about $83.4 billion in 2025‑26, including TK expansion costs and home‑to‑school transportation adjustments for counties.
LAO technical adjustments and TK staffing
Michael Alifedrez (LAO) told the committee his office expects the statutory COLA to be a bit lower than the governor’s 2.43% estimate—reducing LCFF costs by about $130 million—and said the LAO believes the administration may have overstated the costs of moving TK staffing from a 12:1 to a 10:1 ratio. LAO staff also suggested updated attendance data could change current‑year (2024‑25) LCFF costs and reduce projected 2025‑26 costs, which would shift how much new one‑time funding is available for discretionary programs.
Attendance timing and principal apportionment data
Both DOF and LAO noted that the department will incorporate new principal apportionment attendance data in the May revision. Katie Lago Marcino said the department is reviewing newly released CDE apportionment data and will refine its estimates for the May revise. The LAO noted that first apportionment data through December suggests current‑year costs may be slightly higher than originally estimated, but that next‑year costs could trend lower when full data are incorporated.
Policy implications
Committee members asked about how attendance declines tied to immigration‑related fears or disasters could be treated; CDE staff said they are reviewing whether material decreases in ADA would qualify for emergency adjustments (J13A) and are preparing guidance. The panel agreed the May revision will be a key moment to reconcile updated attendance, COLA and TK cost estimates.
