Education finance: education omnibus trailer bill.
What changed between versions
County office of education funding reform: replaces the existing differentiated assistance add-ons ($300,000 base plus per-district and per-charter amounts) with a new universal and targeted assistance county office of education funding grant starting in 2026-27. The new grant is calculated as $500,000 (with inflation adjustments) plus an average daily attendance component plus a stability grant for counties that would receive less than prior years.
Appropriates $757,300,000 from the General Fund for the 2026-27 fiscal year to the Learning Recovery Emergency Fund for allocation to local educational agencies operating in that year.
Appropriates $200,000,000 from the General Fund for the 2026-27 fiscal year for the California Prekindergarten Planning and Implementation Grant Program, and transfers administration of the program from the Superintendent to the State Department of Education.
Appropriates $100,000,000 from the General Fund for a competitive dual enrollment grant program, making regional occupational centers or programs eligible to apply and adding an alternative grant of up to $100,000 for expanding existing programs.
Appropriates $408,000,000 from the General Fund for the 2026-27 fiscal year for the Student Teacher Stipend Program, increasing the annual base stipend pool from $100,000,000 to $125,000,000 and adding a new $5,000 high-need field stipend starting July 1, 2027.
Appropriates $250,000,000 from the General Fund to augment the Teacher Residency Grant Program, extending the time for candidates to complete their 4-year teaching commitment from 5 to 8 school years and allowing hardship-based waiver of repayment obligations.
Appropriates $50,000,000 from the General Fund to augment the Mathematics Professional Learning Partnership administered by the Kern County Superintendent of Schools.
Prop 98 excess moneys recognition delayed by one fiscal year: the 12 proportional shares previously scheduled for recognition from 2027-28 through 2038-39 (with a final share in 2039-40) are now recognized from 2028-29 through 2039-40 (with the final share in 2040-41).
Public School System Stabilization Account: deletes the $405,291,000 appropriation for 2025-26 and instead transfers $500,000,000 from the General Fund to the account. Adds a mechanism whereby 33% of increased General Fund tax proceeds (for 2025-26 through 2027-28 combined compared to the 2026-27 Budget Act forecast) would be deposited to the account for any unfunded portion of the constitutionally-required funding obligation for 2025-26.
Appropriates $10,000,000 from the General Fund for a new Pathways to Bilingual Teaching Program administered by the Commission on Teacher Credentialing, awarding competitive grants of up to $600,000 to consortia partnering with 4-year institutions or community colleges to establish pathways to bilingual teaching credentials.
Appropriates $890,000 annually from the General Fund starting in 2026-27 for the Los Angeles County Office of Education to maintain a statewide repository of high-quality curriculum-embedded performance tasks mapped to Next Generation Science standards.
Increases the Los Angeles County Office of Education add-on for antibias education and inclusive schools from $3,000,000 to $4,000,000 starting in 2026-27, for allocation to the Museum of Tolerance.
Appropriates $50,000,000 for the 2026-27 fiscal year for renewal grants to existing local educational agency grantees or new grants for new consortia lead agencies under the California Universal Preschool Planning Grant Program, and extends expenditure and reversion periods for those grant funds.
Community schools program restructured: transfers administration from the Superintendent to the State Department of Education, eliminates the 18% allocation for extending implementation grants, and requires the Legislature to initially appropriate $1,000,000,000 for a new formula-based distribution to support community school networks, with cost-of-living adjustments starting in 2027-28.
Proration of state moneys among school districts, community college districts, and direct instructional services is made inapplicable to the 2026-27 fiscal year (extending the existing exemption that covered 1992-93 through 2025-26).
Dual enrollment programs (middle college high schools and CCAP partnerships) are now authorized for regional occupational centers or programs, not just school districts, county offices of education, and charter schools. Courses offered through these programs are deemed dual credit courses countable on official transcripts from both the local educational agency and the institution of higher education.
Audit provisions now expressly apply to educational joint powers authorities and charter schools. Financial and compliance audits must be posted on the local educational agency's website. County superintendents are now required (not merely authorized) to investigate causes for audit delays. Starting 2027-28, audit engagement partners must complete 16 hours of continuing education every 2 years to remain on the Controller's directory.
Teacher credentialing: subject matter examinations are no longer a prerequisite for assignment. Instead, competence is established through degree major or coursework, with exams available only when those do not establish competence. The definition of qualifying majors is expanded to include closely related subject areas and education majors for multiple subject credentials.
County office of education negative certification: the Superintendent is now required (not merely authorized) to take actions necessary to ensure the county office meets its financial obligations. The Superintendent must also provide notice of any reclassification action to the governing board of the county office of education.
Commission on Teacher Credentialing fee increase: renewal fees for teaching and service credentials may now be levied up to $125 (previously $100), effective July 1, 2026. Issuance fees remain capped at $100.