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California Schools Face Deep Cuts While Retooling Learning

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State schools could face a $19 billion loss, Governor Gavin Newsom said Thursday while announcing the state's revised budget proposal.

Newsom called on the federal government to pass a massive relief package to avoid that inevitability. The Governor also said he will ask state legislators to “soften the blow” on schools using several budgetary levers, saying education one of the state's core values needing protection.

The Governor also wants to use $4.4 billion in discretionary money from the federal CARES Act, above what was already earmarked for schools, to help schools retool for distance learning during the pandemic. More than a million children in California still lack internet access to connect with teachers and classmates for online learning.

Other help could come from redirecting $2.3 billion from long term pension liability payments to reducing local education agency contributions, and in a rarely used move, the Governor wants to commit 1.5% of the General Fund, more than is constitutionally required by Proposition 98, to deliver another $2.5 billion to schools in the next budget year.

However, the new budget calls for a significant cut to the Local Control Funding Formula, created to explicitly help students living in foster care, English Language Learners and students who are unhoused. That cut could be 10 percent, or $6.7 billion.

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"Clearly, this will be a challenge," the Governor said during the press conference.

Larger urban districts, which are already low on reserves or struggling with existing budget deficits, such as Oakland Unified, are likely to be hurt the most. Schools across the state are trying to finalize next year's budget by June 15.

— Julia McEvoy

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