record education spending bar chart

Governor Newsom and the state Legislature reached agreement on a $235 billion state budget for fiscal year 2022-23, with Proposition 98 funding for K-14 education totaling $35.8 billion more than the previous year’s allocation.

Spending for TK-12 education totals $128.6 billion and provides per pupil funding of $22,893 (including monies from all sources) and $16,993 per pupil from Prop 98. The community college budget totals $13.4 billion (including $12.6 billion in Prop 98 funds) and, significantly, increases the ongoing funding for part-time faculty healthcare by $200 million per year.

Core areas of the K-12 and community college budgets were increased by a statutory COLA of 6.56% plus substantial additional funds, both one-time and ongoing. The University of California and CSU systems received core funding increases of 5%.

This year’s budget continues to build the state reserves, in particular with deposits of $23.3 billion into the Budget Stabilization Account (California’s Rainy Day Fund) and $9.5 billion into the Proposition 98 Reserve, officially known as the Public School System Stabilization Account. In addition, a 10% cap on most districts’ reserves is in effect starting this year.

Inflation relief totaling $17 billion includes tax refunds of up to $1,050 per family, a suspended state tax on diesel fuel, and funding to help cover rent and utility bills. New programs will offer $850 million in assistance for first-time homeowners.

The package includes budget bills (SB 154, SB/AB 178, SB/AB 180) and several trailer bills, including AB 181 (K-12 education), AB 182 (Learning Recovery Emergency Block Grant), SB/AB 183 (higher education), AB 210 (early childhood education), SB 191 (employment). Additional trailer bills are expected later in August.

Download the Budget Brief