01/07/2026
The state has adopted its budget, which includes a $3.9 billion withholding from Prop 98 (the education fund) and adds non public preschools to use Prop 98. This takes away more funding from our TK-12 public schools. Barely basic aid schools (community funded) districts like CUSD will receive no additional funding for mandated programs like transitional kindergarten and maternity leave.
On June 29, the state adopted the 2026–27 budget agreement. Described as balanced for the next two years, the state projects that it will have no operational deficits for the next 18 months. However, the budget includes a number of concerning and problematic approaches to public education funding. Among them is the $3.9 billion withholding of Prop 98 funding, which CSBA has worked to oppose with coalition partners. The maneuver raises concerns that the Legislature and Governor are setting a worrisome precedent whereby this tactic could be used repeatedly to help offset growing costs on the non-Prop 98 side of the budget.
Although the education budget trailer bill has not been voted on yet, it is expected to be taken up and passed by the Legislature on July 2. In addition to the withholding, the budget includes the following:
• The proposed “super” COLA of 4.31%, which includes the requirement that LEAs provide 14 weeks of paid pregnancy disability leave.
• Adds non-LEA based preschools to Prop 98, which includes an initial re-benching of Prop 98 to reflect the growth in costs but does not account for increased funding in future years to accommodate anticipated growth in the program.
• Equalizes the per-pupil special education base rate by allocating $2.4 billion in ongoing Prop 98 funding to provide all LEAs a uniform per-pupil rate of $1,340.
• Maintains the proposed $5 billion in one-time discretionary funding via the Student Support and Professional Development discretionary block grant, which will go out on an ADA basis.
Read a full breakdown in an upcoming edition of California School News.
