New State Budget Will Help Advance Compact Goals

On July 12, Gov. Newsom signed the 2021-22 State Budget Act, California's largest budget to date. The L.A. Compact and its signers applaud the California Legislature and Governor for passing and signing a historic $262.6 billion budget that includes record spending on programs that will uplift our most vulnerable Californians. This budget will also help advance the L.A. Compact's work to increase access to high-quality early care and education, further develop career pathways in high-growth industries, improve college access and success, and ensure workforce readiness through the intersection of programming, policy and systems change.

Key cradle-to-career components in the final budget include:

Early Care and Education/Transitional Kindergarten

  • $780 million to increase payment rates for providers offering subsidized child care
  • $690 million to nearly double subsidized child care spaces
  • $250 million for child care facilities and $130 million for various items such as provider training and capacity-building programs
  • $490 million for the LEA-based preschool, transitional kindergarten, and kindergarten facilities grant program
  • Universal Transitional Kindergarten (TK) - $2.7 billion to expand TK to all four years olds free of charge.  


  • $6 billion to expand broadband infrastructure and enhance internet access for unserved and underserved communities
  • $3 billion budgeted for staff development and teacher recruitment targeted to low-income schools
  • $3 billion, one-time Prop 98 investments to further expand the Community Schools Partnership Grant

Higher Education

  • $2 billion investment to create a fund for student housing at the UC, CSU and community college systems
  • $100 million investment for colleges to support basic needs, including to maintain food pantries, assist students with enrollment in CalFresh, support students in obtaining nutrition assistance and assist homeless and housing-insecure students in securing stable housing
  • $18 million to establish the first statewide longitudinal data system – integrating K-12, higher education, social services, financial aid, workforce training and employment data in a secure system
  • $155 million to eliminate the age and time out of high school eligibility requirements for the Cal Grant entitlement program for community college students

Workforce Development

  • $600 million for Community Economic Resilience Fund to support regional and local planning and implementation of strategies to adapt and seize opportunities that come with a changing economy
  • $100 million to fund additional High Road Training Partnership programs. These training partnerships up-skill the current workforce while creating pathways for new hires and prioritizes workers from underserved communities 

For more information, please contact Humberto Estratalán, Director of Public Policy, at [email protected].

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