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Budget hearing highlights proposed special‑education base‑rate increase and cost disagreements
Summary
The governor's budget proposes cost‑of‑living adjustments and an augmentation to equalize special‑education base funding; LAO supported the policy but estimated a lower fiscal cost to reach the proposed $999 per ADA base rate. CDE and SELPA representatives argued the investment is needed to address rising costs and local shortfalls.
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The committee reviewed the governor's proposal to increase special‑education funding, including a cost‑of‑living adjustment and an augmentation intended to raise and equalize the statewide base rate per average daily attendance (ADA).
Elena Powell of the Department of Finance said the governor's budget proposes an increase of $144,900,000 ongoing Proposition 98 General Fund for COLA and an augmentation intended to raise the special‑education base rate; DOF described the change as fully equalizing base rates across SELPAs. Sarah Cortez of the Legislative Analyst's Office told the committee the policy merits adoption because it addresses district cost pressures, but the LAO estimated the cost of raising the base to $999 per ADA would be about $322,000,000—less than the $509,000,000 figure included in the governor's budget—so the committee should scrutinize the administration's fiscal estimate.
Kimberly Rosenberger, for the State Superintendent, said California serves roughly 870,000 students with disabilities and that the proposed funding is “a significant and much needed investment” that can help districts stabilize services and address structural issues like transportation and workforce shortages.
Local SELPA and district representatives told the subcommittee they face large local contributions and steep increases in identification and costs; one SELPA director reported nearly 73% of special‑education revenue comes from local sources in their SELPA. Stakeholders urged adopting full equalization or additional increases to address sustained cost pressures.
The committee asked DOF and LAO to provide follow‑up analyses on the long‑term funding gap and the contributions of federal, state and local sources. No formal action was taken during the hearing.
