In late June the Governor and Legislature reached an agreement on the 2023-24 California Budget and on June 27, Governor Newsom signed the Budget Act of 2023 (SB 101).

 On July 10 the Governor also approved a“budget bill jr.” (AB 102) that amended SB 101 as well as a number of budget trailer bills that support the implementation of the budget.  

Of particular interest to our field is the signing of SB 114, the education omnibus budget trailer bill which includes changes to Ed Code for the Expanded Learning Opportunities Program.

Budget Impacts on Expanded Learning

The California Legislature and Governor Newsom have maintained their commitment to Expanded Learning programs. Despite fiscal challenges funding for Expanded Learning remains stable:

• Maintains $4 billion in ongoing funding for ELO-P (Expanded Learning Opportunities Program).
• Maintains existing reimbursement rates for ASES and 21st CCLC programs.

Trailer Bill Impacts on Expanded Learning

SB 114 outlines a number of changes to the California Education Code (EC) related to the implementation of ELO-P funding, as outlined below:

• ELO-P School Year: Any instance of School Year for ELO-P is replaced with Fiscal Year. This is consistent with what was proposed in the May Revise.
• ELO-P Expenditures:  Adds encumber (i.e. expend or encumber) and extends the deadline for expending or encumbering funds received in 2021-22 and 2022-23 to June 30, 2024. This is consistent with what was proposed in the May Revise.
• Health & Safety*: When an LEA contracts with a third party, the third party must report to the LEA any health or safety-related issues.  It also requires the third party to request from parents or guardians, student health information (it is at the discretion of the parents or guardians to provide this information). This is consistent with what was proposed in the May Revise and modifies Ed Code Section 8483.4, impacting ASES funded programs as well. See details in Sec. 8. of SB 114.
• Licensing Requirements:  Requirements proposed during the May Revise have been revised. ELO-P programs do not need a child daycare facility license or special permit to operate. An ELO-P operated by a third party that holds a child daycare facility license or special permit as of June 1, 2023, shall maintain that license or permit capacity as a requirement of contracting pursuant to this section until June 30, 2024.
• ELO-P Off-Site Programs: Requirements proposed during the May Revise have been revised. A process and timeline will be established for LEAs to submit information to the California Department of Education if they are contracting with third parties to provide ELO-P services at a location other than a school campus: contact info for the third party, number of students and grades of students served off-site, and licensing info if applicable. The final bill added providing a single point of contact for each LEA regarding ELO-P.
• Data Reporting:  By Feb 1, 2024 CDE will need to submit a report that includes the following:
  • The number of providers who are serving TK/K students on a non LEA site and the number of students served during the school year and summer.
  • The number of providers who are serving TK/K students on a non LEA site in 23-24 who are also licensed, the type of programs that are licensed, and how many students are served.
  • A list of LEAs that contract with third party providers serving students on a non LEA site during the school year and summer including how many contractors they work with, and the number of students served, by grade.

These are new requirements that weren’t included in the May Revise proposal.

*Note: An earlier version of this update wrongly stated the Health & Safety requirements had been removed. These requirements however were included in SB 114 and remain the same as they were during the May Revise proposal.

For more details on these proposed changes, access the trailer bill. The updated EC related to ELO-P begins in Sec 38.

A Fireside Chat will be released in the near future to discuss the details further.

Next Steps

While the primary budget process is complete, it is possible for additional changes to be made. In the current year, September 14 marks the deadline for the Legislature to pass bills. This includes the approval of any remaining budget trailer bills, which are supplementary bills that provide details for specific programs outlined in the main budget. 

Governor Newsom has one month, until October 14, to either sign or veto these bills. However, modifications to the budget can still be made even beyond 2023 and extend into 2024.

Helpful Resources

• CA Dept of Finance: State Budget (including trailer bills & other details)
• Cal Matters: How California Government Works
• Legislative Info: Bill Information 
• Legislative Calendar & Deadlines
• CA Budget & Policy Center
  • Dollars and Democracy: A Guide to the State Budget Process
  • Glossary: State Budget Terms Defined
  • Navigating the State Budget Process

Access additional resources to learn more!