July 2026

Proposition 98 Overview

2026-27 Changes in Proposition 98 Spending

(In Millions)

Revised 2025-26 Spending $115,860
Technical Adjustments  
Various K-14 adjustments -$1,115
Prior year one-time adjustments 968
Transitional kindergarten expansiona -817
LCFF adjustments 494
K-12 categorical programs (declining attendance)b -217
Subtotal (-$687)
K-12 Education  
Special education base rate $2,357
LCFF COLA (2.87 percent) 2,230
Deferral paydown (one time) 1,875
Discretionary block grant (one time) 1,585c
LCFF increase above COLA (1.44 percent)d 1,134
Community schools 1,000e
Shift of all State Preschool programs into Proposition 98 813f
Teacher residency grant program (one time) 250
COLA for select categorical programsg 215
Kitchen infrastructure and training (one time) 100h
Expanded Learning Opportunities Program 66
Special education extraordinary cost pools 40
Low incidence disabilities 40
State Preschool professional development days 34
State Preschool cost of care plus increase 33i
Necessary Small Schools 31
Wildfire-related support for schools (one time) 23
State Preschool Quality Rating and Improvement System 20
Special education programs shifted from federal to state funding 16
COE funding to support school districts and charter schools 11
Support for Multitudes reading difficulties screener 5
Menstrual products mandate added to block grant 2
FCMAT salary adjustment 1
Museum of Tolerance 1
California School Information Services 1
K-12 High Speed Network 1
California Educators Together 1
FCMAT support for Inglewood Unified School District (one time) —j
Standardized Account Code Structure —j
Subtotal ($11,885)
California Community Colleges  
Apportionments COLA (2.87 percent) 292
Apportionments increase above COLA (1.44 percent)k 160
Enrollment growth (1.5 percent)l 98
New credit enrollment funding policym 48
Student support block grant (one time) 47n
California Indian Nations College (one time) 43
Calbright College 38
Common Cloud Data Platform (one time) 36
COLA for select categorical programs (2.87 percent)o 36
Dreamer Resource Liaisons (one time) 35p
Credit for prior learning (one time) 35
Student Equity and Achievement Program 30
Higher 2024-25 and 2025-26 apprenticeship costs (one time) 16
Strong Workforce Program (one time) 16
LGBTQ+ resource centers (one time) 15q
Future of Creative Industries Pilot Project (one time) 15
Student financial aid administration (one time) 10
Early College Demonstration Initiative (one time) 10
Adult Learner Demonstration Project (one time) 10
Healthy School Food Pathways 14
Common Cloud Data Platform 5
Southwestern College pharmacy technician and data science programs (one time) 3
Credit for prior learning 2
Subtotal ($1,013)
Total Changes $12,211
2026-27 Spending $128,071
a Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
b Applies to Child Nutrition, Special Education, and K-12 Mandates Block Grant.  
c The budget also provides $1.8 billion in 2025-26, $1 billion in 2024-25, and $634 million in reappropriated Proposition 98 funding for this purpose.
d This increase applies to all K-12 local education agencies. It is intended in part to support the cost of implementing a new paid pregnancy disability leave requirement.
e The budget also provides $84 million in reappropriated Proposition 98 funds for this purpose.
f The budget increases the Proposition 98 minimum guarantee by this amount.
g Applies to Special Education, Child Nutrition, Equity Multiplier, K-12 Mandates Block Grant, Charter School Facility Grant Program, Foster Youth Services Coordinating Program, Adults in Correctional Facilities, American Indian Education Centers, and American Indian Early Childhood Education.
h The budget also provides $300 million in 2025-26 and $100 million in reappropriated Proposition 98 funds for this purpose.
i Reflects Proposition 98 costs for local education agencies. Increase for other providers reflected in $813 million shifted into the guarantee.
j Less than $500,000
k This increase applies to all community college districts, including hold harmless districts that are not receiving the COLA. It is intended in part to support the cost of implementing a new paid pregnancy disability leave requirement.
l The budget also includes $55 million in 2024-25 funds to fund additional enrollment growth in 2025-26.
m Beginning in 2026-27, funding for a district's regular credit full-time equivalent students will be based on the greater of its three-year average or current enrollment level.
n The budget also provides $100 million in 2025-26 for this purpose.
o Applies to the Adult Education Program, apprenticeship programs, CalWORKs student services, campus child care support, Disabled Students Programs and Services, Extended Opportunity Programs and Services, and mandates block grant.
p The budget also provides $36 million in 2025-26 for this purpose. 
q The budget also provides $15 million in 2025-26 for this purpose.
LCFF = Local Control Funding Formula, COLA = Cost-of-living adjustment, COE = county office of education, FCMAT = Fiscal Crisis Management Assistance Team, LGBTQ = lesbian, gay, bisexual, transgender, and queer.