Download this file - Plan4Preschool

2006-07 Education Budget
On June 30, 2006, Governor Arnold Schwarzenegger signed the Budget Act of 2006,
Assembly Bill 1801 (Chapter 47, Statutes of 2006). Several budget trailer bills were also
enacted, some with the Budget Act and some following through July and August. The
Budget Act, along with the budget trailer bills, sets the conditions for allocating state
funds for California public schools through June 30, 2007.
The budget authorizes a total spending plan of $127.9 billion, including $101.3 billion
from the state General Fund. Although the projected operating budget shortfall for
2006-07 is smaller than in prior years, the state’s ongoing structural budget problem
remains. The Legislative Analyst’s Office projects the year-end operating shortfall to be
approximately $6.9 billion. With a combination of higher-than-predicted revenues and
budgetary actions such as program savings and fund shifts, the state experienced a
projected year-end 2005-06 reserve of $9.5 billion. This will cover the ongoing operating
deficit in the current budget and provide a projected year-end reserve of $2.1 billion.
K–12 Education Highlights
Table 1 and Chart 1 summarize the total funding for kindergarten through grade twelve
(K–12) education from all sources in 2006-07. The table shows that the budget projects
total funding of $67.1 billion. Including all fund sources, the budget provides funds of
$10,748 per pupil in 2005-06 and $11,264 per pupil in 2006-07, an increase of $516, or
4.8 percent, over the revised 2005-06 per-pupil amount.
Sources of Funding
State General Fund
State Lottery
Other State Funds
Federal Funds
Local Property Tax
Local Debt Service Tax
Other Local Funds
Total
Table 1 - Funding for K–12 Education
All Sources and Proposition 98 (in millions)
Funding from
All Sources 1 Proposition 98
Sources
$40,769.4
1021.8
164.5
7,403.3
12,231.9
1,660.3
3,855.4
$67,106.6
$37,140.6
—
—
—
11,973.2
—
—
$49,113.8
1. Note: Includes funds for California Department of Education state operations, state special schools, state
school facilities bond repayments, state contributions to the State Teachers Retirement System, State Library,
and Commission on Teacher Credentialing.
127