LAO Predicts Big Funding Boost for Community Colleges and K-12 Schools

Public school enrollment has declined by more than 230,000 students over the past five years, according to new data from the California Department of Finance. But the pain won’t be felt just yet. The Legislative Analyst’s Office said Wednesday it projects $29 billion in new spending for K-12 schools as well as community colleges in 2022-23 thanks to a revenue windfall.

Proposition 98 funding is expected to hit $102.7 billion, exceeding $100 billion for the first time. The LAO’s annual fiscal outlook also projects a 5.35% cost of living increase next year.

The LAO expects average daily attendance at K-12 schools to drop by 170,000 (3%) this year and then by another 170,000 students by 2025-26. However, the influx of 230,000 transitional kindergartners as a result of the state’s phased-in universal TK program will offset this loss.

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