CA SB76

Eliminates the Proposition 98 Cost Allocation Schedule and requires excess funding applied to school and community college districts to be credited to the fiscal year being certified.

Authorizes the Director of Finance to reduce inflation and cost-of-living adjustments for specified education programs starting in fiscal year 2019–20 if total program funding needs exceed 89% of General Fund and Education Protection Account revenues available for the minimum funding obligation.

Requires the Director of Finance to report to the Legislature before enactment of each annual Budget Act regarding any reductions made to inflation or cost-of-living adjustments for the upcoming fiscal year.

Appropriates $282,237,000 in fiscal year 2019–20 to reduce outstanding minimum funding obligation balances from fiscal years 2009–10, 2011–12, 2013–14, 2014–15, and 2016–17, with allocations for school districts, community college programs, workforce development, student basic needs, and other education initiatives.

Takes effect immediately as a budget-related bill.