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Categorical Funding for 2007-08 and 2009-10

January 2010


The tables on this page list state and federal categorical programs for 2007-08 and 2009-10.

Categorical funds—monies allocated for specific programs or to serve categories of students with special needs—have traditionally represented about a third of school district income on average. But the recent state and national economic crisis has resulted in significant changes to California's categorical programs.

In February 2009, to help districts deal with budget cuts, lawmakers made substantial changes to many of the state’s categorical programs, allowing districts the flexibility through 2012–13 to use funds from about 40 state categorical programs for other purposes. These newly flexible programs total about $4.5 billion statewide in 2009–10 (nearly 20% lower than their 2008–09 funding level). Prior to implementing this new flexibility, a district or county office of education (COE) must discuss proposed changes at a public meeting.

In addition, lawmakers cut 11 relatively small state programs by nearly 20% while maintaining their requirements. These non-flexible programs total about $300 million in 2009–10 and include Student Assessment, English Learner Student Assistance, and Foster Youth Services. Another 10 state categorical programs—most of them large—retained their requirements and were not cut substantially. They total about $9.6 billion and include Special Education, Child Care and Development, K–3 Class Size Reduction, Economic Impact Aid, Child Nutrition, and the after-school programs created by Proposition 49.

Federal categorical programs were not affected in the same way. However, there was a significant influx of federal stimulus monies to California schools in 2008-09 and 2009-10.

This page contains three tables from the EdSource report School Finance 2009–10: Budget Cataclysm and its Aftermath that explain these changes. 

Newly Flexible State Categorical Programs 

This table compares 2007-08 funding amounts and totals with those for the same programs in 2009-10. (The 2007-08 fiscal year is the most recent with stable funding amounts.) All the programs in this table are flexible through 2012-13, and all were cut nearly 20% from their 2008-09 funding amounts. 

New Flexible State Categoricals Program

Notes: This list does not include the handful of programs funded at less than $1 million. The sum of funding for programs within each category may not equal the category total due to rounding. The same is true for the grand total. This list also does not include the High Priority Schools Grant Program, which was funded at $47 million in 2007-08 and which ended in 2008-09. The $47 million figure includes $6 million in funds for corrective action, but it does not include a total of $102 million reappropriated from the Budget Acts of 2005 and 2006.

  1. These totals include three programs less than $5 million that are not listed: Oral Health Assessments, Advanced Placement Exam Fee Waiver Program, and International Baccalaureate Diploma Program.
  2. This amount does not include $115.5 million from the Proposition 98 Reversion Account.
  3. This money is not distributed to local education agencies but is listed as subject to categorical flexibility. This budget item does not include Proposition 98 money.

Data: California Department of Education (CDE), Budget Acts, Other Legislation
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Nonflexible State Categorical Programs

This table compares 2007-08 funding amounts and totals with those for the same programs in 2009-10. (The 2007-08 fiscal year is the most recent with stable funding amounts.) All the programs in this table retain program requirements. Some, but not all, experienced cuts of nearly 20% from their original 2008-09 funding amounts. 

Nonflexible State Categorical Programs

Note: This list does not include the handful of programs funded at less than $1 million.

  1. See this data page for an explanation of changes to this program.
  2. This program is funded by a continuous appropriation and does not appear in the Budget Act.
  3. The 2007-08 figure does not include $250 million from the Proposition 98 Reversion Account and $99 million from the Public Transportation Account.
  4. See page 10 of School Finance 2009-10: Budget Cataclysm and its Aftermath for an explanation of recent funding changes to this program.
  5. The 2007-08 amount was for the first year of implementation; state law required an increase in subsequent years. See page 9 of School Finance 2009-10: Budget Cataclysm and its Aftermath for more information on QEIA.

Data: California Department of Education (CDE), California Department of Finance (DOF), Budget Acts, Other Legislation
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Ongoing federal funding is stable, and the economic stimulus is providing one-time funds

California is receiving more than $7 billion in federal categorical funding in 2009-10. That funding level is largely consistent with amounts provided in the recent past. One notable exception within that set of programs is the amount of funding for charter schools. From 2007-08 to 2009-10, under former President George W. Bush's policies, federal support for charters in this state more than doubled.

In addition, the state is receiving more than $6 billion for K-12 education through the federal stimulus package. However, that funding, much of which has been received already, is intended for 2008-09 through 2010-11 and is not ongoing money.

Major Federal Programs

This table compares federal categorical funding in 2007-08 with funding in 2009-10. It also displays estimated federal stimulus funding.

Major Federal Categorical Funding comparision 07-08 to 08-09

Note: Subprograms may not add up to the total funding for a particular ESEA Title due to rounding.

  1. Most of the increase from 2007-08 results from a large new effort to help local education agencies in corrective action.
  2. Funding was substantially lower than in prior years. For example, the total funding in 2006-07 was $963 million. In 2007-08, the state shifted $269 million in federal funding to purposes other than child care and used state funding to offset the shift.
  3. The federal authorization for this program ended in 2009.

Data: California Department of Education (CDE), California Department of Finance (DOF), Legislative Analyst's Office (LAO), Budget Acts, Other Legislation
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