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Governor’s Budget Proposal helps schools in short-term but relies on third manipulation of Proposition 98 that undermines stable education funding in long run

Statement from CSBA President Dr. Debra Schade on Gov. Newsom’s 2026–27 Budget Proposal

SACRAMENTO, Calif. (Jan. 9, 2026) —  Although the Governor’s 2026–27 Budget Proposal appears to maintain public education funding at current levels, for the third time in as many years, it includes a deeply concerning manipulation of Proposition 98 — the bedrock of public education funding for California’s schools and students. While we appreciate the effort to provide stability in the short-term, in the long-term it undermines the resilience and reliability that Proposition 98 provides for our students. While the budget’s education funding may appear generous at first glance, it relies on one-time funding to inflate per-pupil spending numbers and masks the true costs to school districts and county offices of education.

The proposals to pay off the remaining deferrals, provide funding for a discretionary block grant, increase financial resources for special education and to fund the cost-of-living adjustment are all positive steps for schools. Yet, the state must preserve and protect the voter-approved, Constitutionally-required Prop 98 education funding guarantee to fulfill its obligations and create the conditions for student success. Full Prop 98 funding is critical for local educational agencies (LEAs) striving to maintain core instructional programs and deliver the targeted supports that drive student performance and close achievement gaps. At a time when we are working to accelerate modest gains in positive student outcomes, we cannot manipulate a funding source that is integral to efforts to close California’s persistent achievement gaps.

LEAs operate under constant fiscal uncertainty and must navigate a maze of programs, policies and regulations creating undue administrative burdens. CSBA urges the administration and Legislature to reconsider this approach, honor the Prop 98 Guarantee and prioritize elevating school funding to the level of the top 10 states — a perch California occupied when its K-12 school system was regarded as one of the nation’s best. A different tact is required to provide districts and county offices of education with the funding, support and flexibility needed to deliver meaningful progress toward closing California’ student achievement gaps.