Dear Governor Newsom, Senate pro Tem Limón, Speaker Rivas, Senator Laird, Assembly Member Gabriel, Senator Pérez, and Assembly Member Alvarez:

The May Revision reflects meaningful progress on issues important to suburban districts. At the same time, the continued proposal to withhold Proposition 98 funding, albeit at a lower level than proposed in January, remains a major point of opposition

The additional revenues recognized in the May Revision help address priorities of suburban districts, and our members are appreciative. As the Legislature and Administration deliberate budget provisions, a small number of refinements would substantially strengthen the final budget. There are also significant changes that CALSSD recommends.

A. Progress in the May Revision and Refinements for Final Budget

CALSSD appreciates the following improvements relative to the Governor’s January Budget and prior-year baselines. Where the May Revision proposals warrant clarification or refinement, we have noted those points alongside our support.

1. Special education. The $2.4 billion ongoing increase — including $1.8 billion in new base rate funding — equalizes the special education base rate statewide and raises it to $1,340 per ADA. This investment is one of the most consequential elements of the May Revision. In a recent feedback survey, district leaders identified this investment as meaningful and expected to reduce the amount of local general fund dollars that must be used to cover a portion of special education costs. For a number of respondents, the new base rate increase is estimated to cover a small portion (under 30%) of general fund encroachment for special education. These freed-up general fund dollars are expected to be redirected to student services, staff supports, and operational needs.
2. LCFF and the super COLA. The increase from a 2.41% statutory COLA to 2.87% brings the COLA close to the 3% rate which has been identified as a key metric. Paired with the $906.7 million discretionary investment that brings the effective COLA to 4.31%, this will begin to address the longstanding gap between statutory COLAs and the real cost of staffing, benefits, utilities, insurance, and facility maintenance. This is a meaningful step toward base grant adequacy. The proposed new mandated paid pregnancy disability leave that the enhanced COLA is intended to cover is discussed below.
3. Discretionary block grant. Nearly doubling the Student Support and Professional Development Discretionary Block Grant from $2.8 billion to $5.1 billion provides districts with critical flexibility to manage rising costs — particularly in declining-enrollment districts where fixed and rising costs collide with reduced ADA revenue. CALSSD strongly supports retaining the per-ADA allocation structure. The rising operational costs and fiscal liabilities that this funding is intended to address — health benefits, utilities, transportation, insurance, retirement contributions, and AB 218 exposure — do not fall on districts on a weighted basis; they are hitting all districts. A per-ADA distribution is therefore the most equitable way to support all students, including students in the LCFF unduplicated count and other underserved students, because it ensures every district receives the resources necessary to keep classrooms operating for every child it serves
4. Community schools. CALSSD supports the $1 billion ongoing investment; it is a significant shift from time-limited grants to sustained funding, allowing districts to build and maintain the staffing and partnerships the model requires. Ongoing funding is essential for sustainability and for building the capacity that allows the community schools approach to take root. To strengthen implementation, CALSSD offers two refinements:
   • Eligibility threshold. The proposed minimum of 65% of students in the LCFF unduplicated count will still leave out many school sites that serve high proportions of low-income students, English learners, foster youth, students experiencing homelessness, and students with disabilities but fall below the 65% floor. Vulnerable students are concentrated at many school sites that do not meet the eligibility threshold. CALSSD urges consideration of state funding that supports balance across school sites within a district rather than create pressure between designated and non-designated sites.
   • Evaluation authority. CALSSD proposes that the Legislature clarify authorization for districts to use community schools funding for local evaluation and continuous improvement efforts — so districts, county and regional technical assistance providers, and the Legislature can see what is working and direct ongoing dollars accordingly.
5. Educator workforce. CALSSD continues to support the Teacher and Counselor Residency Grant Program, the Golden State Teacher Grant Program, and the 21st Century California School Leadership Academy, which together reflect sustained attention to the educator pipeline. We appreciate that the May Revision maintains the $250 million one-time Proposition 98 General Fund investment for the Teacher and Counselor Residency Grant Program and adds $30 million one-time Proposition 98 General Fund for a new statewide teacher residency technical assistance center. Residencies have shown strong promise in attracting new educators and in improved preparation, and districts value continued investment and capacity support.

B. Key Considerations for the Final Budget

As the Legislature crafts a final budget, CALSSD urges attention to the following:

1. Reject the use of the settle-up methodology to defer Proposition 98 obligations and close the $3.9 billion settle-up in 2026–27. CALSSD continues to oppose the withholding of Proposition 98 funding, now proposed at $3.9 billion, and the use of the settle-up methodology to postpone or avoid providing Proposition 98 dollars to schools and students. These are constitutionally guaranteed dollars that have been identified for students currently in classrooms. Deferring $3.9 billion into 2027 — a year already projected to face significant fiscal pressure — undermines district planning, compounds the structural problem rather than resolving it, and risks normalizing the use of settle-up as a budget-balancing tool at students’ expense. CALSSD urges the Legislature to close the remaining $3.9 billion gap in the 2026–27 budget and to reject the use of the settle-up methodology to delay or reduce the State’s Proposition 98 obligations going forward.
2. Provide dedicated funding for the new pregnancy disability leave mandate and address implementation gaps The May Revision creates a new mandate requiring up to 14 weeks of paid= pregnancy disability leave for all TK–12 LEA employees beginning in 2026–27. The Administration maintains that the 1.4% gap between the statutory COLA (2.87%) and the effective COLA (4.31%) is sufficient to absorb this mandate alongside other rising operating costs. CALSSD is concerned that the 1.4% discretionary increment will not fully cover the mandate’s cost — particularly when districts are also absorbing rising health benefit, utility, transportation, and insurance costs. To implement this 4 mandate without forcing districts to redirect resources from students, CALSSD urges the Legislature to:
   • Establish a separate, dedicated funding source. Rather than rely on the discretionary portion of the LCFF COLA to absorb a new statutory obligation, the Legislature should evaluate the true cost of the mandate independently and establish an ongoing funding source that reflects actual implementation costs. This protects the LCFF discretionary increment for its intended purpose: addressing rising operating costs that are already straining district budgets and supporting core programs.
   • Ensure funding reaches every LEA, including those outside the standard LCFF framework. The current proposal would require LEAs that do not receive the full LCFF COLA — including community-funded (basic aid) districts and Necessary Small School districts — to provide the same paid leave benefit without the funding intended to support it. Small districts and county offices of education would likely not receive sufficient funding through their LCFF formula allocation to cover the costs. We urge the final budget to include a funding structure that covers the actual cost of the mandate, regardless of how the local educational agency is funded under LCFF.
   • Address the anticipated increase in substitute teacher demand. Districts will need to fill classroom assignments for the full duration of any pregnancy disability leave taken. CALSSD urges policy changes that provide authority to districts to meet the anticipated increase in substitute teacher demand, including reviewing existing substitute teacher assignment limits to ensure they accommodate leaves of up to 14 consecutive weeks. Maintaining instructional continuity for students depends on it.
3. AB 218: provide a durable solution beyond COLA. The improved LCFF COLA provides near-term breathing room, but COLA is not a sustainable response to AB 218 exposure. These claims arise from conduct that occurred decades ago — before today’s students, staff, and leaders were in the system — and the multi-year fiscal exposure is significant. CALSSD urges the Legislature to advance reforms that strengthen prevention and student safety, support survivors, and explore establishment of a victim compensation fund so districts can meet obligations rooted in past conduct without compromising their ability to serve students currently in classrooms.
4. Expanded Learning Opportunities Program (ELOP): consistent rate, real flexibility. The ELOP proposal in the May Revision is unchanged from the Governor’s January Budget. Suburban districts continue to support the Administration’s proposal for a consistent Tier 2 per-pupil rate and continue to advocate for additional flexibility in program implementation. Suburban districts vary significantly in staffing, facilities, transportation capacity, and community partner availability. A one-size implementation model strains districts that face different operating realities. A consistent rate paired with greater local flexibility allows districts to plan, retain staff, sustain partnerships, and provide reliable programming.
5. California State Preschool Program: apply the full statutory COLA. Many suburban districts operate the California State Preschool Program (CSPP), which plays a critical role in early learning, school readiness, and access to high-quality care for working families. CALSSD urges the Legislature to apply the full 2.87% statutory COLA to CSPP so funding keeps pace with rising operational costs and programs can sustain access, quality, and stability for young children and their families.
6. Transitional kindergarten: address facilities and implementation. The May Revision does not address the facility and implementation costs associated with universal TK expansion. CALSSD districts have embraced universal TK, but expansion continues to create facility and staffing pressures — particularly where classrooms designed for older students require modification for four-year-olds and where districts are operating at the edge of early-grade capacity. CALSSD urges the Legislature to address these facility and implementation needs in the final budget alongside continued operational funding.

CALSSD appreciates the opportunity to comment on the May Revision. As the budget moves toward final adoption, we welcome the opportunity to provide additional information about how these proposals affect suburban districts across California.

Please contact us at andrea@ballfrostgroup.com and deborah@bautistazavalagr.com with questions or to discuss the positions outlined here.

Sincerely,

Deborah Bautista Zavala
Legislative Advocate
California Association of Suburban School Districts

For Immediate Release

The California Assembly Education Committee today voted unanimously to approve AB 2303, authored by Assemblymember Al Muratsuchi. The bill, which is sponsored by the California Association of Suburban School Districts (CALSSD), would reduce the fragmented and duplicative reporting burden faced by California school districts, improve data quality, and lay the groundwork for a unified statewide portal and a comprehensive calendar of report and plan deadlines.

“AB 2303 streamlines unnecessarily burdensome reporting requirements so schools can spend less time filling out forms and more time educating our students,” said Assemblymember Muratsuchi. “This bill streamlines reporting while maintaining transparency and accountability.”

Local educational agencies currently must meet reporting requirements for numerous separate state systems, each with different submission timelines, data formats, and program contacts, while in essence seeking the same or very similar information. This burden falls disproportionately on districts with lean administrative capacity.

“Every year, each school district is responsible for submitting dozens of reports which collectively are thousands of pages long. School district staff must spend substantial time navigating disconnected portals and resolving formatting inconsistencies across dozens of separate state systems. This is valuable time that could otherwise be focused on supporting students,” said Carmen Garcia, Superintendent of Morgan Hill Unified School District. “AB 2303 is a much-needed step toward bringing coherence and alignment to reporting requirements and making the information that school districts report more useful to educators, stakeholders, and the state.”

Key elements of AB 2303 include:

• Data Quality and Equity: More coherent data collection will produce more reliable information on student outcomes — including for English learners, students with disabilities, foster youth, students experiencing homelessness, and students from low-income families, encompassing the Local Control Funding Formula unduplicated groups.
• A Unified Portal and Submission Calendar: Recommendations for a single statewide data submission portal and a comprehensive reporting calendar would reduce confusion, allow school district staff to plan effectively, and improve transparency around reporting and plan deadlines.

AB 2303 takes a measured and fiscally responsible approach by directing the Legislative Analyst’s Office (LAO) to make recommendations about a California data portal and data submission calendar after reviewed ways that other states have successfully established unified reporting portals and consulting with the California Department of Education, other relevant state agencies, and key stakeholders. The bill does not authorize new system development or eliminate any existing requirement.

AB 2303’s deadline for the LAO report provides appropriate urgency while allowing for thorough consultation with school boards, county offices, administrators, business officers, labor unions, and districts of all sizes.

CALSSD also applauds the passage of AB 2008, authored by Assemblymember Darshana Patel, which would add a provision to future school data reporting and planning requirements that auto-repeals them four years after they go into effect, similar to Government Code 10231.5 for state reports.

Both AB 2303 and AB 2008 were approved unanimously on consent by the Assembly Education Committee.

About CALSSD: The California Association of Suburban School Districts represents member districts serving communities across California’s suburban regions, advocating for fiscally responsible policies that support student success and educator effectiveness.

For more information contact Andrea Ball, President of the Ball/Frost Group LLC and legislative advocate for the California Association of Suburban School Districts at andrea@ballfrostgroup.com or 916-616-3116.

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Learn more about AB 2303

Read CALSSD’s Letter of Support

Read the Assembly Committee on Education’s Analysis

Statement from CALSSD on Proposed Budget Released by Governor Gavin Newsom

Sacramento, CA – The California Association of Suburban School Districts (CALSSD) today issued the following statement in reaction to Governor Gavin Newsom’s proposed budget for Fiscal Year 2024-25. This statement is attributed to Dr. Sara Noguchi, Superintendent of Modesto City Schools – the lead district for CALSSD.

“As California faces an anticipated revenue shortfall, CALSSD appreciates that Governor Newsom’s proposed budget prioritizes critical investments that support student learning by maintaining fidelity to the Local Control Funding Formula and protecting funding for core TK-12 educational programs.

“Suburban school district leaders look forward to working with Governor Newsom on the development of a career education master plan. Our students will benefit from expanded opportunities to learn about and prepare for fulfilling high-road jobs that are needed to power our economy.

“Finally, we applaud Governor Newsom’s commitment to work with the Legislature to place a much-needed school facilities bond on the November ballot to address the growing need to build and modernize schools. We hope that there will be an opportunity after the May Revision to fund the $550 million implementation of the critical expansion of the transitional kindergarten program.”

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For Immediate Release

California Association of Suburban School Districts Responds to Governor’s May Revision Budget Proposal for Fiscal Year 2023-24

In response to the release of Governor Gavin Newsom’s May Revision to the proposed state budget for 2023-24, the California Association of Suburban School Districts (CALSSD) has released the following statement. This statement can be attributed to Dr. Sara Noguchi, Superintendent of Modesto City Schools, the lead district for CALSSD.

“Suburban school districts applaud the Governor for funding a full statutory 8.2% cost of living adjustment which school districts need to address increasing local costs. The trade-off is the proposed reduction and clawing back funds from the arts and music block and learning recovery grants. Since many districts are already using these funds to meet important student needs, it will be challenging for them to manage these funding cuts if they are sustained through the budget process.”

“We are heartened by the May Revision proposals to increase the educator workforce. Schools need all available tools to recruit and retain a teacher workforce that reflects the diversity of our students. We also support efforts to provide flexibility, allowing schools to hire retired educators and use innovative approaches to fill high-needs vacancies such as special education.”

“California suburban school leaders will continue to advocate for our students as the Legislature considers these proposals and navigates the continued uncertainty in state revenues and economic growth.”

The California Association of Suburban School Districts is an organization that supports policies and funding efforts to improve the quality of education for all students.

For more information contact Andrea Ball, President and CEO of the Ball/Frost Group LLC and legislative advocate for the California Association of Suburban School Districts at andrea@ballfrostgroup.com or 916-616-3116.

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