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Changes to Ongoing Proposition 98 Funds
The major 2006-07 changes in ongoing funding are shown in Table 2. They include:
• $2.6 billion to fund a 5.92 percent cost-of-living adjustment (COLA) for revenue
limits and most categorical programs.
• A net decrease of $150 million in revenue limit funds as a result of statewide
declining enrollment.
• $426 million for after school programs from the trigger of Proposition 49 (2002).
• $350 million in revenue limit equalization funds to reduce inequities in general
purpose allocations and spending among school districts.
• $350 million in economic impact aid, including a revised distribution formula for
calculating the allocations to school districts.
• $309 million for deficit factor reduction to eliminate the remaining prior years’ deficit
factors.
• $200 million to create a supplemental school counseling program for students in
grades seven through twelve.
• $105 million for a new arts and music block grant to provide local educational
agencies with funds to hire staff, provide professional development, and purchase
equipment and supplies for arts and music programs.
Table 2 - Changes to Ongoing Proposition 98 Funds
2006-07 Budget Compared to 2005-06 Enacted Budget (in millions)
Revenue limit changes
Cost-of-living adjustment (COLA) $1,924
Growth adjustment -263
Deficit factor reduction 309
Revenue limit equalization 350
Subtotal $2,320
Categorical programs changes
COLA 672
Growth adjustments 112
Proposition 49 after school programs 426
Economic Impact Aid 350
Counselors (grades 7 through 12) 200
Arts and music block grant 105
Child care eligibility limits 67
Preschool expansion 50
Increased support for high school exit examination 50
Physical education teacher incentive grants 40
Professional development for teachers of English learners 25
Certificated staff mentoring 11
Other miscellaneous 48
Subtotal $2,156
Total $4,476
129