July 2026

Proposition 98 Overview

2024-25 Changes in Proposition 98 Spending

(In Millions)

Revised 2024-25 Spending $118,029a
Technical Adjustments  
Transitional kindergarten expansionb -$415
Various K-14 adjustments 97
LCFF adjustments -48
Subtotal (-$365)
Proposition 98 Reserve (deposit) $4,869
K-12 Education  
Discretionary block grant $1,038c
Learning Recovery Emergency Block Grant 757
Dual enrollment 100
Subtotal ($1,895)
California Community Colleges  
2025-26 deferral repayment $408
Additional 2025-26 enrollment growth (1.0 percent)d 55
Higher 2025-26 apportionments costs 38e
Subtotal ($502)
Total Changes $6,900
2024-25 Revised Spending $124,929
a The 2025 Budget Act included $1.9 billion in unallocated Proposition 98 funds. The Governor's proposed 2026-27 budget allocates these funds for various purposes.
b Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
c The budget also provides $1.6 billion in 2026-27, $1.8 billion in 2025-26, and $634 million in reappropriated Proposition 98 funding for this purpose.
d Increases budgeted growth from the enacted 2025-26 level of 0.57 percent to 1.57 percent. The associated ongoing cost is built into apportionments in 2026-27.
The budget also provides $103 million in 2025-26 for this purpose. 
LCFF = Local Control Funding Formula.