Sacramento, CA — Governor Newsom released his 2024-25 budget proposal this morning, estimating a relatively small $37.9 billion budget shortfall and proposing a largely status quo budget for K-12 schools. The Governor’s Budget represents a much rosier scenario than most had anticipated after the Office of the Legislative Analyst (LAO) issued a grim, $68 billion budget shortfall estimate in December and warned of the potential for significant ongoing risks.
Newsom and his Director of Finance, Joel Stephenshaw, said the primary difference between the governor and the LAO’s figures stem from differences in near-term economic projections. Where the LAO sees a potential for a recession and hedges with slightly depressed income tax estimates, the governor relies on more optimistic estimates. The governor and Stephenshaw downplayed these differences, noting that the governor’s and LAO’s longer-term (6-year) estimates are very close and differ by only $2.5 billion.
Notwithstanding the optimistic estimates, the governor still anticipates a $37.9 billion budget shortfall for the state in 2024-25. He proposes a mix of cuts, deferrals, and dipping into budget reserves to address the gap. This includes tapping $5.7 billion from the education-specific Public School Stabilization Account, a budget reserve specifically for K-12 schools and community colleges, to maintain spending for K-14 education. He did not declare a budget emergency, a technical step that could have opened the door to other options, including tapping deeper into reserves.
Key details of the Governor’s Budget proposal of interest to charter school leaders include...
CSDC is Watching Closely in Sacramento
Many of today's proposals are currently available only in summary form and it may take days or weeks for legislation with key details to appear.
CSDC is watching closely in Sacramento and will soon present an in-depth webinar on the Governor's Budget as well as provide updates on other key legislative, policy, and practice issues. Registration is exclusively available to CSDC Member Schools and Authorizers at no additional cost. (Join/renew here.) CSDC recommends that school leaders, business officers, and board members attend.
Here's where to learn more: