June 17, 2021
Legislature Approves Its Budget While Negotiations Continue
On Monday, the Senate and Assembly approved their version of the 2021–22 State Budget Act (Assembly Bill [AB]) 128 on a party-line vote despite not yet reaching a final agreement on the State Budget with Governor Gavin Newsom. The Legislature had to pass its version of the Budget by June 15 in order to meet the constitutional deadline set by Proposition 25 (2010).
ACCCA supports many of the aspects of the legislative State Budget, including:
- “Mega” cost-of-living adjustment of 5.07%
Remove conditional language from the Student Equity and Achievement Program
- Complete elimination of all deferrals
- Ongoing support in education technology
- Ongoing funding for basic needs centers and one-time basic needs funding
- Nearly $3 billion to address increasing employee pension costs
- Reducing the School Employees Fund (unemployment insurance) contribution rate from 1.23% to 0.50% for 2021–22 and 2022–23
ACCCA’s letter to legislative leaders regarding the State Budget can be found here.
The fact that they have yet to come to a deal means the final version of the 2021–22 State Budget will look different than the version approved by the Legislature on Monday. This means that once a deal has been made with Governor Newsom, the Legislature will approve a subsequent budget bill that reflects the compromise and makes necessary amendments to AB 128.
AB 128 was presented to Governor Newsom on Monday afternoon, giving him until Saturday, June, 26, 2021, to take action on the bill. He can either approve the bill as presented to him, approve the bill with specific line-item reductions, or veto the bill and send it back to the Legislature. The likely scenario is that Governor Newsom delays taking action on AB 128 until he reaches a final agreement with the Legislature. However, presenting AB 128 Monday afternoon officially started the 12-day clock that Governor Newsom has to take action on the bill, effectively making it the deadline for the Administration and the Legislature to strike a deal.