July 2026

Proposition 98 Overview

Proposition 98 Spending Proposals

2024-25 Through 2026-27, Includes Reappropriated Funds (In Millions)

K-12 Education  
Ongoing  
Special education base rate $2,357
LCFF COLA (2.87 percent) 2,230
LCFF increase above COLA (1.44 percent)a 1,134
Community schools 1,000
Shift of all State Preschool programs into Proposition 98 813b
COLA for select categorical programsc 215
Expanded Learning Opportunities Program 66
Special education extraordinary cost pools 40
Special education low incidence disabilities 40
State Preschool professional development days 34
State Preschool cost of care plus increase 33d
Necessary Small Schools 31
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
Science performance tasks 1e
Standardized Account Code Structure —f
Subtotal ($8,052)
One Time  
Discretionary block grant $5,034
Deferral paydown 1,875
Learning Recovery Emergency Block Grant 757
Kitchen infrastructure and training 500
Student teacher stipends 408
Literacy coaches 350
Teacher residency grants 250
Universal Pre-Kindergarten Planning and Implementation Grant 250
Students experiencing homelessness 116
Dual Enrollment 100
California’s New Americans in Schools 100
Community schools 84
Dream Resource Center Grant Program 75
Mathematics Professional Learning Partnership 50
Literacy Screener Professional Development 40
Statewide teacher residency technical assistance center 30
Supporting Inclusive Practices Project 30
Inclusive college technical assistance center 25
Wildfire-related support for schools 23
21st Century California School Leadership Academy 15
Pathways to Bilingual Teaching Program 10
Classified School Employee Teacher Credentialing Program 10
Holocaust and Genocide Education Grant Program 10
Alternate pathways to diplomas 10
Teacher candidate transcript review platform 5
FCMAT support for Inglewood Unified School District —f
Subtotal ($10,157)
Total K-12 Education $18,210
California Community Colleges  
Ongoing  
Apportionments COLA (2.87 percent) $292
Apportionments increase above COLA (1.44 percent)g 160
Enrollment growth (1.5 percent) 98
New credit enrollment funding policyh 48
Calbright College 38
COLA for select categorical programs (2.87 percent)i 36
Student Equity and Achievement Program 30
Healthy School Food Pathways 14
Common Cloud Data Platform 5
Credit for prior learning 2
Subtotal $723
One Time  
2025-26 deferral repayment $408
Student support block grant 147
Higher 2025-26 apportionments costs 141
Deferred maintenance 121
Dreamer Resource Liaisons 71
Additional 2025-26 enrollment growth (1.0 percent)j 55
California Indian Nations College 43
Common Cloud Data Platform 36
Credit for prior learning 35
LGBTQ+ resource centers 30
Higher 2024-25 and 2025-26 apprenticeship costs 16
Strong Workforce Program 16
Future of Creative Industries Pilot Project 15
Student financial aid administration 10
Early College Demonstration Initiative 10
Adult Learner Demonstration Project 10
Pierce College Family Resource Centers 5
Southwestern College pharmacy technician and data science programs 3
Cal-Bridge First Academic Scholar Training 1
Subtotal ($1,173)
Total California Community Colleges $1,896
Total Spending Proposals $20,106
a 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.
b The budget increases the 2026-27 Proposition 98 minimum guarantee by this amount.
c 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.
d Reflects Proposition 98 costs for local education agencies. Increase for other providers reflected in $813 million shifted into the guarantee.
e Reflects $890,000 ongoing, beginning in 2025-26.
f Less than $500,000
g This increase applies to all community college districts, including hold harmless cdistricts that are not receiving the COLA. It is intended in part to support the cost of implementing a new paid pregnancy disability leave requirement.
h 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.
i 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.
j 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.
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.