Trailer Bill Language Released and FMCAT Releases AB 218 Report

2025-26 K-12 Omnibus Trailer Bill 

The proposed K-12 Omnibus trailer bill language was released by the Department of Finance on Saturday, February 1, 2025. It provides key details on the Governor’s budget proposal and will be negotiated with the legislature through the budget process this spring.  

Below is a summary of selected sections followed by a chart listing the topics for each section of the trailer bill language.   

Failure to Adopt the LCAP: Section 2

Since LCFF was signed into law, the requirements to adopt an LCAP have lacked any enforcement mechanism. Last summer, for the first time, one LEA failed to adopt an LCAP by the statutory deadline, likely leading to this proposed budget trailer bill language. 

Specifically, this language:  

• Would prohibit any COE, district, or charter school that refuses to adopt their LCAP or annual update from receiving apportionments of state and federal funds.  

• Would allow the withholding of stipends, expenses, benefits, salaries and wages from superintendents, charter school leaders, governing board members, if the COE, district, or charter school fails to transmit their LCAP or annual update to the Superintendent of Public Instruction or the district or charter school fails to transmit their LCAP or annual update to their county superintendent.  

• Would assess fiscal penalties on LEAs that do not adopt an LCAP by July 1. 

Conditions for Audit Extensions: Section 9

Existing law allows for appropriate extensions of independent audits. The trailer bill proposes defining “appropriate”. Specifically, the proposed language clarifies that: 

• Appropriate extensions should be the shortest amount of time reasonable given the extenuating circumstances justifying an extension. 

• Appropriate extensions should be in increments no greater than 45 calendar days.  

• Appropriate extension should not be more than 90 calendar days from the due date. 

AB 938 Programmatic and Timeline Changes: Section 13

During the 2023-24 legislative session, Assembly Bill 938 (Muratsuchi, Ch. 345, Stats of 2024) began as a bill that sought to create new LCFF funding targets to increase both classified and certificated school site staff salaries by 50% by 2030-31 at school districts and charter schools.  In late August, the bill was amended to require LEAs to complete the Salary and Benefits Schedule for the Certificated Bargaining Unit (Form J–90) annually beginning on January 31, 2026 to gain insight into classified salaries across the state.  

Due to the timing of these amendments, it was recognized that additional clarity would be needed in future legislation to ensure the bill can be implemented to fulfill the intent. 

Section 13 of the proposed trailer bill: 

• Clarifies that the California Department of Education must create a new data collection system for the purposes of this bill by July 1, 2026, and removes references to the Form J-90.  

• Provides additional time for implementation by extending the date for initial LEA compliance to August 31, 2026, and by July 1 in each subsequent year. 

• Defines the classifications covered by the data collection more clearly to allow for uniform comparisons. 

• Adds definitions for the terms “salary” and “full-time equivalent”. 

Expanded Learning Opportunities Program: Section 16

The proposed budget trailer bill provides details related to reaching full implementation of ELOP. Specifically, the proposal: 

• Expands Tier 1, beginning in the 2025-26 school year, to LEAs with a prior year unduplicated pupil percentage of 55% or more and continues to allocate $2,750 per unit of the prior year second period ADA for grades 1-6.  

• Specifies that the per unit rate for Tier 2 LEAs cannot exceed $2,750. 

Add Community Treatment Facilities to Special Ed OOHC Funding Formula: Section 19

For the 2021–22 fiscal year and each fiscal year thereafter, this section proposes to amend the calculation for each special education local plan area an amount based on the sum of the following amounts:  

• For 2021-22 to 2023-24 fiscal year, the amount of funding generated by short-term residential therapeutic program placement. 

• For the 2024-25 fiscal year and each fiscal year after, the amount generated by short-term residential therapeutic program placements and community treatment facility placements.  

Additionally, this section proposes to define community treatment facilities to align with the definition in Section 1502 of the Health and Safety Code.   

Fix Outdated Reference for School District Collection of Developer Fees: Section 22

This section proposes to amend the Government Code Section 66007 aligned with SB 937 (Wiener, Ch. 290, stats of 2024). The local agency may require payment of contractor fees or charges at an earlier time if: 

• The Construction and rehabilitation of school facilities has been included in the five-year school facilities master plan.  

• If the school district does not intend to participate in the school facilities program, the school district is not required to submit the five-year school facilities master plan to the Department of General Services, and the five-year school facilities master plan is not required to include information specific to the school facilities program. 

The section also proposes to require that before requiring execution of a contract, the local agency should post on their website, the following: 

• The capital improvement plan, or board approved school facilities five-year master plan.  

• If the school district does not intend to participate in the school facilities program, the school district is not required to submit the five-year school facilities master plan to the Department of General Services, and the five-year school facilities master plan is not required to include information specific to the school facilities program. 

ADA Hold Harmless for Fire Impacted Local Educational Agencies: Section 28

In recognition of the catastrophic damage caused by the January 2025 fires in Los Angeles County, the proposed trailer bill language holds the most impacted LEAs harmless for ADA apportionment in the 2025-26 school year.  Those LEAs are:  

• Pasadena Unified 

• Aveson Global Leadership Academy 

• Odyssey Charter School – OCS South 

• Odyssey Charter School 

• Pasadena Rosebud Academy 

• Aveson School of Leaders 

• Palisades Charter Elementary 

• Marquez Charter Elementary 

• Palisades Charter High School 

Consolidated Application and Reporting: Section 29

Over the past few years, LEAs have faced numerous challenges related to applying for and receiving Career Technical Education (CTE) funding through grants and programs administered by the California Department of Education.  The trailer bill proposes a number of new requirements that aim to remedy these challenges.  Specifically, the language: 

• Requires, by January 31, 2026, the Superintendent of Public Instruction to study the feasibility of and publicly report on the possibility of creating and implementing a streamlined grant process for the various CTE funding streams. 

• Requires, by October 15, 2025, the Superintendent of Public Instruction, to publicly report information on CTE grants, such as historical levels of funding and the grant awarding process.  

Educator Training for Screening of Pupils for Risk of Reading Difficulties: Section 31

The proposed trailer bill outlines the allocation methodology for the $40 million to support educator training related to the administration of the Reading Difficulties Screener. Specifically, the Superintendent of Public Instruction will calculate a per pupil rate based on dividing the $40 million by the total number of students statewide in grades K-2, excluding TK students. LEAs will receive an allocation based on their total number of K-2 students multiplied by the calculated per pupil rate.  

Kitchen Infrastructure and Training: Section 37

The proposed trailer bill provides the following details on this budget proposal: 

• For 2025-26 fiscal year, $150 million of General Fund is appropriated to the CDE.  

• $100 million would be available to LEAs, though a competitive grant process, for kitchen infrastructure upgrades to prepare onsite minimally processed, locally grown, and sustainable food.  

• Allocated funds would have a June 30, 2028 encumbrance deadline. 

• Allowable uses:  

•  To prepare meals that surpass the current nutrition quality of the federal school meal program and to reduce waste, include all of the following: 

• Cooking equipment upgrades, with the encouragement to purchase energy saving equipment 

• Service equipment 

• Refrigerators  

• Transportation of ingredients 

• Supporting infrastructure system needs 

• Grant reporting:  

• Each grantee will report to the CDE on or before June 30, 2029, on how it used the funding to increase the capacity of preparing fresh onsite, locally grown, and sustainable food 

• $50 million shall be available for the CDE to appropriate funds to LEAs based on number of lunches served in October 2024, with a minimum allocation of $3000. 

• Allowable uses: 

• In-person training and professional development 

• Additional funding for providing plant based or restricted diet meals 

• Equipment, should funds remain after the using funds for training, professional development and plant based or restricted diet meals. 

• Grant reporting:  

• Each grantee will report to the CDE on or before June 30, 2029, on how it used the funding to improve the quality of school meals, including: 

• Improving the quality of food 

• Lowering sodium and sugar level 

• Eliminating processed or ultra-processed foods 

• Offering more freshly prepared meals 

Student Support and Professional Development Discretionary Block Grant: Section 44

The proposed trailer bill provides the following details on the $1.7 billion Student Support and Professional Development Block Grant: 

• Allocates the funds based on ADA. 

• Makes the funds available for expenditure through June 30, 2029. 

• Does not create any reporting requirements. 

The language still indicates the discretionary nature of the block grant, while outlining some possible uses aligned with state priorities, the language could be strengthened to add emphasis on the ability of LEAs to use the funds for any local priorities. 

TK Multilingual Learner (ML/EL) Proposal: Section 46

Assembly Bill 2268 (Muratsuchi, Ch. 15, Stats of 2024) exempted students in transitional kindergarten (TK) from being assessed for English language development using the English Language Proficiency Assessments for California (ELPAC). 

Section 46 of the proposed trailer bill outlines the requirements for the creation and use of a new screening instrument for the identification of multilingual learners in TK. Specifically, the proposed trailer bill: 

• Makes finding and declarations. 

• Requires the Superintendent of Public Instruction, subject to the approval of the Executive Director of the State Board of Education to select a screening instrument.  

• Appropriates $10 million from the General Fund to make the selected tool available and provide training to LEAs, free of charge, by March 1, 2026. 

• Requires LEAs to administer the screening instrument to all TK students with a primary language other than English beginning in the 2027-28 school year.  

• Outlines the requirements for the screening instrument.  

FCMAT AB 218 Report  

On Friday, January 31, 2025, the Fiscal Crisis & Management Assistance Team (FCMAT) released its report titled “Childhood Sexual Assault: Fiscal Implications for California Public Agencies”.  This report was authorized by Senate Bill 153 (Chapter 38, Statutes of 2024) and required FCMAT provide recommendations on new, existing, or strengthened funding and financing mechanisms to finance judgments or settlements arising from claims of childhood sexual assault against local agencies.   

The report provides a comprehensive review of the impact of AB 218 claims on local educational agencies and possible funding and financing mechanisms for the costs of these claims.  In addition, the report provides recommendations on the prevention of childhood sexual assault.  

The summary of recommendations begins on page 42 of the report and is also below. 

1. Require the development and maintenance of a statewide data repository, including mandating cooperation and information sharing by public agencies (page 13). 
2. Mandate a classification system to provide objective, actuarially based information on childhood sexual assault claims (page 14).  
3. Amend Government Code 970.6 to provide for the determination of unreasonable hardship by the local governing body tied to established standards (page 22). 
4. Amend Government Code 970.6 to provide a sliding scale of time for repayment based on the judgment amount, plus interest thereon (page 22).  
5. Extend the payment due date to 150 days from when a judgment is entered by the court for judgments that are greater than 50% of the local agency’s unrestricted reserves (page 23).  
6. Clarify that a Code of Civil Procedure 860 validation proceeding may be brought by a public agency before tort action judgments are entered against the public agency (page 27).  
7. Consider a limited exception to the prohibition on the use of lease financing proceeds for general operating purposes in EC 17456 for situations where an otherwise financially stable school district is faced with an extraordinary liability. (page 27).  
8. Extend state and local payment intercept mechanisms to public financings by local public agencies rather than limit the mechanism to the California School Finance Authority (page 28).  
9. Expand or direct an appropriate role for the state’s Infrastructure and Economic Development Bank in financing childhood sexual assault settlements and judgments (page 28).  
10. Adopt an alternative receivership statute for school districts requesting emergency apportionments solely due to childhood sexual assault obligations (page 32).  
11. Extend the maximum repayment term of 20 years for emergency apportionments when the loan amount is significantly higher than the school district’s ability to pay and based on analysis performed and disclosed during the process leading to an emergency apportionment (page 33).  
12. Commission a study that identifies the structure and attributes of a victims’ compensation fund for childhood sexual assaults involving a public agency. The study should be presented to the Legislature no later than January 1, 2026, and the Legislature should consider establishing a victims’ compensation fund by July 1, 2026 (page 36).  
13. Ensure that state policies set consistent standards to achieve zero tolerance for childhood sexual assault (page 37). 
14. Require comprehensive school safety plans to include required policies and procedures designed to improve supervision and protection of children (page 37).  
15. Amend paragraphs 1-5 and 9 of Penal Code 11165.7(a) to simply include all employees, volunteers and governing board members of a public or private school, including charter schools (page 37).  
16. Increase the quality and consistency of mandated training to prevent, build awareness of, and increase access to reporting options for, childhood sexual assault (page 38).  
17. Mandate training of students to promote awareness and help provide 24-7 protection (page 39).  
18. Establish a statute that promotes professional boundaries between adults and children and strengthens the safety of learning environments (page 39).  
19. Expand the work history verification and inquiry mandate to include all public and private school employers and employees (page 40).  
20. Provide for an electronic database of school employee work history in California’s public and private schools (page 40).  
21. Apply the definition of egregious misconduct to all public and private school employees, and ensure that instances of egregious misconduct are reported to an appropriate state agency and included in available work history data accessible to school employers (page 40).  
22. Provide a clearer, improved definition of grooming that specifically addresses grooming in school, childcare, educational, recreational, and incarceration or probation settings (page 40)