California would be first state to exempt income taxes for teachers. The income tax bill joins others bills aimed at easing state's teacher shortage.
Most teachers receiving layoff notices will eventually have them rescinded in coming weeks as districts receive better state budget estimates.
Amid the state's teacher shortage, California issued more than 10,200 intern credentials, permits and waivers to underprepared teachers so they could work in classrooms in 2015-16.
The incentive is aimed at increasing the number of math, science, bilingual education and special education teachers.
Supporters of new funding for teacher recruitment programs said they're disappointed in Gov. Jerry Brown's initial state budget proposal.
School employees in 25 school districts or county offices of education who want to become teachers are eligible to receive annual grants of up to $4,000 as part of an effort to add more teachers to the workforce.
An LAO report says Legislature should avoid "broad statewide policies."
The proposal would lift the 30-day limit on substitute teachers' classroom time.
The bills would offer financial support and more training for aspiring teachers.
The number of those teachers with has nearly doubled in the past two years.
Education officials reported a shortage in nearly every subject area.
The majority describe the shrinking supply of teachers as “very serious.”
The bills were introduced as enrollment in teacher preparation programs declines.