Governor releases May Revise State Budget Governor Brown released the 2017 May Revise, which is the update to the January budget proposals adjusted for the most current revenue and expenditure data. While the Governor continued to call for fiscal constraint, the May Revise proposal did reflect modest improvement over January's proposed budget and provided increases for school districts, County Offices of Education and Community Colleges. Highlights of the Governor's May Revise Proposal Include: K-12 Education Proposition 98 - As a result of growth in General Fund revenues, the Proposition 98 funding guarantee increased to $74.6 billion compared to the $73.5 billion proposed in January. Local Control Funding Formula (LCFF) - The May Revise provides an additional $1.4 billion for the LCFF. This almost double the $744 million proposed in January. This includes a cost-of living adjustment (COLA) of 1.56 percent, an increase from the January estimate of 1.48 percent, for school districts, County Offices of Education (COEs) and charter schools. A COLA of 1.56 percent for school districts, COEs, and charter schools is provided within the increases for the LCFF. Caution: The amount of discretionary increases in a district budget can be different from this COLA. One-Time Discretionary Funding - The May Revise proposes over $1 billion, compared to $287 million proposed in January, in discretionary one-time Proposition 98 funding for school districts, COEs, and charter schools. The Budget suggests, but does not require that the funding be used to further the implementation of common core standards, professional development and deferred maintenance. Proposition 39 - The May Revise reduces funding to $376.2 million, compared to $422.9 million proposed in January, for K-12 schools for energy efficiency projects. The reduction is based on lower revenue estimates. Cost-of-Living Adjustment (COLA) - For categorical programs, the May Revise provides an increase of $3.2 million over the $58 million proposed in January to support the increase in the COLA from 1.48 percent to 1.56 percent for categorical programs outside the LCFF. These programs include: Special Education, Child Nutrition, Foster Youth, Preschool, American Indian Education Centers, and American Indian Early Childhood Education Program. Future One-Time Funding Adjustments - The Department of Finance has also indicated that they are proposing language that would allow the administration to prospectively adjust Proposition 98 one-time funds if it is determined that actual revenues are below estimated revenues. This would apply to both K-12 and Community Colleges. Community Colleges Increased Operating Expenses - Provides $184 million, compared to $23.6 million in January, for support of increased operating expenses in areas such as employee benefits, facilities, professional development, and other general expenses. Cost-of-Living Adjustment (COLA) - Provides $97 million, compared to $94.1 million proposed in January, to reflect a COLA that increased from 1.48 percent to 1.56 percent for apportionments. Student Access - Proposes a decrease to $57.8 million, compared to $79.3 million proposed in January, to reduce growth funding from 1.34 percent to 1 percent. Guided Pathways - Provides $150 million to fund the Guided Pathways Program. This is the same funding level proposed in January. Deferred Maintenance and Instructional Equipment - Provides $135.8 million, compared to $47.3 million proposed in January, for deferred maintenance, instructional equipment, and specified water conservation projects. Proposition 39 - Proposes a decrease to $46.5 million, compared to $52.3 million proposed in January, for community college energy efficiency project grants. What's Next? The May Revise is the update to the Governor's budget proposal based on updated revenue and expenditure data. The Senate and Assembly will now review the Governor's May Revise proposal and each house will adopt their own budgets. The two houses will then convene a Conference Committee to address any differences in their respective budgets before sending a single budget to the Governor. The Constitution requires a budget to be adopted by June 30th.