The short version: California’s enacted 2026-27 state budget sets a guaranteed minimum ELO-P Rate 2 rate of $1,800 per unduplicated pupil. This replaces a system where Rate 2 funding shifted every year based on what was left over after Rate 1 districts were paid. For site coordinators and district finance teams, this means steadier multi-year planning, though it is worth understanding exactly what the floor does and does not guarantee.
For years, districts running ELO-P programs under Rate 2 have had to plan their budgets around a number that would not sit still. That’s about to change, and it’s worth understanding both what shifted and what it means for the way your site plans staffing and programming going forward.
Why Rate 2 Funding Has Been So Hard to Plan Around
ELO-P has always funded districts under two tiers. Rate 1 applies to local educational agencies with 55 percent or more unduplicated pupils, meaning English learners, foster youth, and students from low-income households. Rate 2 applies to everyone below that threshold.
Rate 1 funding has held steady at $2,750 per unit of average daily attendance since 2023. Rate 2 has told a different story. Because Rate 2 funding was calculated from whatever money remained in the ELO-P appropriation after Rate 1 districts were funded, the rate moved up and down depending on statewide enrollment patterns rather than any fixed formula. According to the Legislative Analyst’s Office, the Rate 2 rate actually dropped 23 percent between 2022-23 and 2024-25, and it held at that lower number through 2025-26.
For a district trying to staff a program a year or two out, that kind of swing makes real planning difficult. You cannot commit to hiring or facility costs with confidence when the funding underneath them might drop by hundreds of dollars per pupil the following year.
What Changed in the 2026-27 Budget
Per the Assembly Budget Committee’s trailer bill analysis, the 2026-27 budget stabilizes the Rate 2 rate at $1,800 per unduplicated pupil for local educational agencies with less than 55 percent total unduplicated pupils. Rate 1 remains unchanged at $2,750.
What This Means for Staffing and Program Planning at Your Site
A funding floor changes the nature of the planning conversation. Instead of estimating a range and hoping the number lands on the higher end, site coordinators and finance teams now have a guaranteed minimum to build against. That makes it more realistic to commit to multi-year staffing decisions, lock in vendor or facility agreements with more confidence, and avoid the kind of mid-year budget surprise that comes from a rate dropping after contracts are already signed.
It doesn’t mean funding is now generous. It means the bottom of the range has a name on it, and that alone is a meaningful shift from the last several budget cycles.
What the Floor Does Not Solve
It is important to be clear about what this budget change is and is not. A guaranteed $1,800 per pupil is a floor, not a statement about what a quality expanded learning program actually costs to run at your site. Districts that have historically braided ELO-P with other funding sources, whether that is ASES, 21st Century Community Learning Centers, or general fund contributions, will likely still need to do so. The floor removes the year-to-year guesswork. It doesn’t remove the underlying funding gap between the rate and full program cost, which is a conversation worth having separately with your finance team based on your site’s specific numbers.
Frequently Asked Questions
What is the difference between ELO-P Rate 1 and Rate 2?
Rate 1 applies to districts where 55 percent or more of students are unduplicated pupils, meaning English learners, foster youth, or students from low-income households. Rate 1 is funded at $2,750 per unit of average daily attendance. Rate 2 applies to districts below that 55 percent threshold and is now funded at a guaranteed minimum of $1,800 per unduplicated pupil under the 2026-27 budget.
Is the $1,800 rate guaranteed every year going forward, or could it change again?
The 2026-27 budget stabilizes the rate at $1,800 with an ongoing funding commitment, rather than a one-time allocation. That said, state budgets are revisited every year, so districts should continue watching each budget cycle for updates rather than assuming the rate is permanently fixed in statute.
Does this change affect districts currently funded under Rate 1?
Rate 1 funding stays at $2,750 per unit of average daily attendance and is not affected by this change.
Explore HPA
Navigating ELO-P funding shifts is one more thing on a long list for district leaders already balancing staffing, compliance, and program quality. High Performance Academy partners with districts across the Central Valley to help make expanded learning programs work in practice, not just on paper. If your site is thinking through what this year’s budget means for you, contact us today.
