Governor Newsom’s updated proposed budget—his May Revision—is out, and it is now up to the legislature and the capitol community to engage and respond. Continuing his multi-year planning approach, Governor Newsom presented a $322 billion total budget, projecting a $12 billion shortfall.
Market volatility following the imposition of tariffs has led to a substantial downgrade of the S&P 500 forecast for the second quarter of 2025. This downturn is particularly impacting California-based technology companies, whose reduced stock values have significantly affected state revenues. As a result, many of the administration’s most substantial proposed budget solutions are limited to the healthcare sector.
In the education space, the May Revision proposes total funding of $137.8 billion for TK–12 programs, including $80.5 billion from the state’s General Fund and $57.3 billion from other sources. In his presentation, Governor Newsom highlighted per-pupil spending, community schools, universal transitional kindergarten (TK), universal school meals, and investments in literacy as key priorities.
We are encouraged to see the governor recognize Speaker Rivas’ leadership in advancing literacy, and to see a proactive $200 million proposal in support of pending legislation. The bill’s focus on evidence-based professional development and instructional materials aligned with the state’s English Language Arts/English Language Development (ELA/ELD) Framework’s comprehensive integrated approach is critically important. This alignment is essential to ensuring that multilingual learners are fully included in, and benefit equitably from, California’s literacy policies.
We appreciate the governor’s inclusion of $10 million for the selection of a developmentally appropriate English language proficiency screener tailored to TK students. The recent exemption of TK students from the English language proficiency assessment led to a significant reduction in supplemental and concentrated grant funds. We are pleased that the budget includes a $7.5 investment to address this loss of funding.
In addition, we are grateful for the proposed ongoing $2 million to support regional English learner leads. These regional county office leads play a vital role in assisting schools to provide targeted support for English learners—especially critical given potential Title III cuts in the federal budget.
We look forward to working with the administration and legislature to ensure that California’s multilingual learners have the tools, support, and instruction practices they need to thrive.
Key Budget Highlights for English Learners and Literacy:
- TK Multilingual Learner Supplementary Funding: $7.5 million (one-time Proposition 98 General Fund, available through 2026–27) to offset funding reductions resulting from the recent exemption of TK students from the English language proficiency assessment.
- Regional English Learner Lead Agencies: $2 million ongoing (Proposition 98 General Fund) to support targeted regional assistance for English learners.
- Student Support and Professional Development Discretionary Block Grant: Adjusted to $1.7 billion (down from $1.8 billion). This funding provides fiscal relief and supports statewide priorities, including: 1) Professional development on the ELA/ELD Framework and Literacy Roadmap, with a focus on strategies for English learners; 2) Professional development aligned with the new Mathematics Framework; 3) Teacher recruitment and retention; 4) Expansion of career pathways and dual enrollment aligned with the Master Plan for Career Education.
- ELA/ELD Instructional Materials Supplemental Guidance: $250,000 to support the follow-up adoption and implementation of ELA/ELD instructional materials by the Instructional Quality Commission and State Board of Education.
Literacy and Math Coaches: $500 million total allocation. Of this, $235 million is proposed for local educational agencies to develop school literacy programs, including dual language immersion and other programs that serve multilingual learners.