Overview

California schools may see a significant increase in funding as Governor Gavin Newsom prepares to unveil his May budget revision for the 2026-27 fiscal year. This revision is highly anticipated, particularly in light of the $5.6 billion previously withheld from TK-12 education and community colleges.

Advocates for education funding, including school board members and teachers union leaders, are pushing for the release of these funds, citing constitutional obligations under Proposition 98.

Key details

  • $5.6 billion: Newsom's initial budget in January included a plan to withhold this amount from education funding, despite forecasts suggesting sufficient revenue for schools.
  • Proposition 98: This legislation mandates a certain portion of state revenues be allocated to schools and community colleges, which advocates argue is being violated by the withholding of funds.
  • Advocacy efforts: Last week, education leaders held press conferences and lobbied legislators in Sacramento for the release of the withheld funds.
  • Debra Schade: President of the California School Boards Association emphasized the need to focus resources on improving student performance and addressing achievement gaps.
  • Cecily Myart-Cruz: President of United Teachers Los Angeles stated that diverting the $5.6 billion is a violation of the state constitution.
  • 2.87% COLA: The cost-of-living adjustment for school districts' general operating budgets has been revised to nearly half a percent higher than what was included in the January budget.
  • $500 million: The revised COLA calculation is expected to provide an additional $500 million to school districts.
  • Timing: The final budget must be sent to the governor by mid-June, following closed-door negotiations between legislative leaders and Newsom.

Context

The ongoing discussions around education funding in California are critical, as they directly impact the resources available for TK-12 education and community colleges, especially in light of the challenges posed by fluctuating state tax receipts.

What happens next

As the May budget revision approaches, there is optimism that schools may receive at least a portion of the withheld funds, with further negotiations expected before the final budget is established in June.

What we don't know yet

Details regarding the exact amount of funding that will be allocated in the May revision and the outcomes of the negotiations between legislative leaders and the governor are still unconfirmed.