Millions of California kids could get $500 for college savings in Newsom’s school plan

California Gov. Gavin Newsom wants to send schools and community colleges $93.7 billion in state funding over the next several years to set up college savings accounts for low-income kids, hire more teachers and counselors and phase in universal transitional kindergarten, according to administration officials.

The investment is part of a state budget plan he’s expected to formally unveil in detail and send to the Legislature on Friday. The blueprint includes an additional $100 billion in state surplus and federal aid dollars that Newsom said will help the Golden State recover from COVID-19.

Because schools are legally entitled to a significant portion of the state budget, this year’s unprecedented $75 billion surplus could help local education agencies invest in new resources and ambitious programs.

“We are looking to transform, not going back to where we were, but to transform our education system,” Newsom said.

A significant element of his proposal includes setting aside an initial $2 billion this year in federal funds for a college-savings program for kids who might not otherwise be able to afford higher education. After the initial installment this year, the budget would continue allocating an ongoing $170 million for the initiative.

Under the plan, each low-income public school kid would get a $500 account, and foster youth and homeless students would get an additional $500 deposit.

“If you believe in going to college, you’ve got to create a college-calling mindset. Once a mind is stretched, it never goes back to its original form,” Newsom said. “We are poised to do something that the academics have been promoting for decades and research has said is one of the best investments of breaking the cycle of poverty.”

The administration estimates 3.7 million students would be eligible for the money now, with 320,000 more students qualifying each year in the future. About 6.2 million students attend California public schools.

Low- and middle-income families can already start a college savings account through ScholarShare 529. The plan currently provides a dollar-for-dollar matched contribution of $200, with an extra $25 provided for setting up an automatic contribution plan.

Newsom’s administration expects these savings accounts to provide financial incentives to go to college for marginalized students who are often excluded from such opportunities.

Newsom’s larger K-14 financial plan drills down on helping kids recover from a year of often substandard online learning. He also wants to make down payments on future programs that will help alleviate overcrowded classrooms and provide earlier learning opportunities for California’s youngest students.

More money to open schools

The proposal banks on schools getting back to full-time, in-person learning by the fall, according to the administration officials. Newsom has in recent days reiterated that kids need to finally get back to the classroom after more than a year of interrupted instruction.

Here are some of the programs he wants to fund:

▪ Kickstart universal transitional kindergarten in the 2022-2023 school year, to be fully implemented by 2024-2025. The budget plan includes $900 million for the first year, to increase to an eventual $2.7 billion.

▪ Expand after-school and summer school programs for low-income kids who qualify for free or reduced lunch, English language learners and foster youth. To start, the plan allocates $1 billion in funding for several hours of additional instruction time, to increase to $5 billion by 2025-2026. Administration officials said up to 2.1 million kids could benefit from such an investment.

▪ Reduce staffing ratios in overcrowded classrooms by providing $1.1 billion in ongoing funds for disadvantaged schools to hire more teachers, counselors, nurses and support staff.

▪ Provide $3 billion in one-time funding to help education agencies set up more so-called community schools, which provide additional services for families through local partnerships.

▪ Spend $3.3 billion over five years on teacher preparation and training programs.

Assemblyman Kevin McCarty, the Sacramento Democrat who has long fought for universal transitional kindergarten, said the funding would help California “invest in our priorities.”

“There is a lot we can do in the short- and long-term here,” said McCarty, who also chairs the Assembly Budget Subcommittee on Education Finance. “I think this is a great chance to properly invest in our kids.”

‘There is more opportunity here’

California School Board Association spokesman Troy Flint said that every school should use the additional funds for extended learning offerings, better quality special education and emotional support opportunities. Flint said the money could also finance new technology and building upgrades.

“This is an opportunity for schools to think creatively about how they can enhance a system that hasn’t always served all students well,” Flint said. “With these additional surplus funds, there is more opportunity here.”

Republican John Cox, whom Newsom defeated in the 2018 election, said the governor still gets an “F” for “failing our kids” during the pandemic. Cox wants to run for governor in the expected Newsom recall election.

“No amount of funding matters when teachers and students aren’t in the classroom,” Cox said in a statement. “Students across California are falling further behind everyday. Instead of getting everyone back to school, Gavin Newsom makes political announcements about spending money.”

This story was originally published May 12, 2021 at 6:00 AM with the headline "Millions of California kids could get $500 for college savings in Newsom’s school plan."