2023-24 State Budget Webinar Series: May Revise and Spring Charter Leadership Update

Eric Premack

Founder & Executive Director

Category: CA State Budget
May 18, 2023

Volatile economic conditions, delayed tax filings, persistent inflation, bank runs, and a sagging technology sector are weighing heavily on state revenues after several years of dramatic increases in school funding. While the statutory cost-of-living factor has increased, state revenues are down, and other cost pressures are increasing. More so than ever, this year’s annual May Budget Revision will force the governor and his staff to make difficult estimates with very limited information. In this members-only webinar, CSDC staff provides essential information on key topics all charter school leaders need.


The recording of this webinar is available to CSDC Member Schools and Authorizers. Please sign-in or join/renew.


Timestamp Slide Description
00:00:00 Slides 1-9

Welcome & About CSDC

CSDC Charter School Operations Specialist, Candice Lamarche, kicks off the live webinar, welcoming the hundreds of California charter schools represented in today’s audience.

This webinar is one of the many benefits available exclusively to CSDC Member schools and it builds upon CSDC’s preliminary take on the May Revise published right after Governor Newom’s May 12 address.

In addition to this webinar, CSDC shares a few other tips for fully utilizing CSDC Membership as well as dates for upcoming CSDC Leadership Trainings.

00:03:39 Slides 10-16

Legislative Updates

CSDC’s Legislative and Community Outreach Specialist, Laura Kerr, gives an update on the latest developments in Sacramento and explains CSDC’s position on these charter-related bills:

  • AB 1604 (Bonta)
  • SB 739 (Alvarado-Gil)
  • SB 426 (Niello)
  • SB 810 (Alvarado-Gil)
  • AB 1479 (E. Garcia)
00:21:53 Slides 17-18 Q&A
00:28:22 Slide 20

Budget Process & Timing Context

CSDC’s Executive Director and Founder, Eric Premack, provides a status update of where we’re currently at in the annual budget development cycle.

00:31:40 Slides 21-24

Economic Context California, National, and International

Unemployment is low, wages are growing, and we are not in a recession yet. But economic storm clouds are gathering on the horizon.

  • Which economic indicators are most concerning, especially in a California context?
  • After years of eye-popping state tax revenue increases, where is the trendline currently heading?
  • What is the Legislative Analysts Office’s current revenue outlook – and why is it so volatile and uncertain?
00:39:19 Slides 25-27

Prop 98 & Education Funding Big Picture

  • The Proposition 98 education funding guarantee will be down considerably from the Governor’s January budget proposals. What are the factors driving the decrease? And what does the May Revise do to close the gap?
  • What’s the current size of the Proposition 98 Rainy Day Fund and will it be enough to protect K-14 education during an economic downturn?
00:45:56 Slides 28-37

K-12 Education Budget Proposals: COLA, LCFF & LCAP

  • COLA: The May Revise proposes “fully funding” the 8.22% statutory COLA, which is a slight increase over the January estimate. Eric discusses how the Governor plans to pay for it and why school leaders might be concerned.
  • “Hold Harmless” Protections: Good news: Statewide charter school enrollment has rebounded during the 2022-23 school year. But there is significant school-to-school variance. Will charter schools ever get the same “hold harmless” protections enjoyed by districts?
  • LCFF Equity Multiplier: The May Revise maintains January’s $300 million proposal. Will the Legislature support it?
  • LCAP Accountability Changes: The May Revise piles-on, creating additional layers of complexity and burden. Eric contextualizes the changes. Retroactive Cuts: The May Revise proposes deep, retroactive cuts to two existing programs. Which programs – and how deep?
  • CSDC’s Funding Estimates: Get CSDC’s latest estimates based on the Governor’s May Revise proposals, including CSDC’s:
    • 2023-24 Local Control Funding Formula Rates
    • LCFF Multi-Year COLA Estimates


00:58:46 Slides 38-40

Proposition 28 Arts Funding

  • Approved by voters last year, Proposition 28 increases the Proposition 98 funding guarantee by 1%, but the funding is heavily restricted. Eric shares more, including what clarity the May Revise offers for the key phrase, “supplement not supplant.”