Legislature Adds To Suspension Of School, Community College Funding In 2024-25 Placeholder Budget

State Sen. Roger Niello, R-Fair Oaks, vice chairman of the Senate Budget and Fiscal Review Committee, back to camera, urges lawmakers to reject a measure to reduce the state budget deficit at the Capitol in Sacramento on April 11, 2024.LAist is facing a budget shortfall, but our mission to provide fact-based journalism is stronger than ever. We cannot do this important work without your member support today.

Suspending a portion of the Proposition 98 obligation requires creating a type of IOU that must be repaid in coming years. Newsom avoided outright cutting of TK-12 and community college funding by suspending some state funding and pushing off paying districts from the end of one fiscal year to the start of the next one — a tactic known as deferrals.

Republicans in the Legislature criticized addressing the state’s budget deficit by raising taxes on the business community and shifting funds around. The budget is “little more than a shell game meant to hide the bleak truth of our financial situation,” said Senate Minority Leader Brian W. Jones, R-San Diego, who blamed overspending for the swing from a massive budget surplus to a deficit in two years.

Senate President pro Tempore Mike McGuire, D-Geyserville, predicted a deal between lawmakers and Newsom as early as next week and that the final budget would be similar to what the Legislature approved.is an independent nonprofit organization that provides analysis on key education issues facing California and the nation. LAist republishes articles from EdSource with permission.

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