California Career Technical Education Incentive Grant Program: annual adjustment: renewal grants.

Assembly Member Muratsuchi's proposal to modify California's Career Technical Education (CTE) Incentive Grant Program introduces automatic funding adjustments and restructures grant renewal policies to enhance program stability. The bill removes existing caps on grant amounts and implements annual funding adjustments based on the Implicit Price Deflator for State and Local Government Purchases starting in fiscal year 2025-26.

The legislation mandates three-year renewal grants for prior recipients who maintain program requirements, shifting the program's focus toward sustaining successful initiatives. Beginning in 2025-26, up to 90% of grant funding will support renewal grants, with the remaining 10% reserved for new applicants, subject to adjustment by the Superintendent of Public Instruction.

The bill preserves existing accountability measures while adding new oversight provisions. Grant recipients must continue matching $2 for every $1 received and encumber these matching funds within the application fiscal year. The Superintendent gains authority to halt funding and recover distributed funds if recipients fail to implement programs as proposed or meet matching requirements. Educational institutions subject to local control requirements must incorporate CTE programs into their accountability plans to maintain renewal eligibility.

These modifications maintain the program's core mission of delivering career technical education while introducing mechanisms for funding stability and program continuity. The changes affect school districts, county offices of education, charter schools, and regional occupational centers currently participating in or seeking to join the grant program.