Overview

California education leaders are experiencing mixed emotions following Governor Gavin Newsom's revised state budget proposal for the 2026-27 fiscal year. While the budget addresses several key priorities for school districts, it also leaves significant concerns unaddressed, particularly regarding Proposition 98 funding.

The proposal includes a higher cost-of-living adjustment (COLA), increased funding for special education, and a substantial one-time discretionary block grant. Additionally, it introduces paid pregnancy disability leave for school and community college employees. However, the withholding of $3.9 billion in Proposition 98 funding has sparked frustration among education advocates.

Key details

  • Governor Gavin Newsom's revised budget proposal was released on Thursday.
  • School districts can meet most of their priorities for the 2026-27 fiscal year.
  • The proposal includes a higher cost-of-living adjustment (COLA) for education funding.
  • It allocates billions more annually for special education services.
  • A one-time, larger discretionary block grant is also part of the proposal.
  • All employees of community colleges and TK-12 schools will receive up to 14 weeks of paid pregnancy disability leave starting in 2026-27.
  • The increased COLA will help fund the new paid leave policy.
  • Despite the positive aspects, Newsom is withholding $3.9 billion in Proposition 98 funding.
  • School organizations argue that this funding should be available now for schools and community colleges.
  • There is ongoing concern about base funding not keeping pace with rising expenses.
  • Senator John Laird expressed that while the higher COLA and special education funding are welcome, schools are looking for more stable funding.
  • Children Now's president, Ted Lempert, acknowledged the increase in education funding but noted that students are still behind.

Context

Governor Newsom's budget proposal comes amid record state funding levels, yet it prioritizes new initiatives such as transitional kindergarten and expanded learning opportunities, which have drawn mixed reactions from education leaders.

What happens next

As discussions continue regarding the budget, education advocates and organizations may pursue legal action concerning the Proposition 98 allocations, which are viewed as a constitutional guarantee.

What we don't know yet

Details regarding the potential legal actions by the California Teachers Association and the school boards association are not confirmed. Additionally, the implications of withholding the Proposition 98 funding remain unclear.