January 2025

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under Governor's Budget

(Dollars in Millions)

  2023-24
Revised		 2024-25
Revised		 2025-26
Proposed
Minimum Guarantee      
General Fund $67,093a $86,619 $84,603
Local property tax 31,392 32,569 34,321
   Totals $98,484b $119,188 $118,923
Change From Prior Year      
General Fund -$6,853 $19,526 -$2,016
   Percent change -9.3% 29.1% -2.3%
Local property tax $1,618 $1,177 $1,752
   Percent change 5.4% 3.8% 5.4%
Total guarantee -$5,235 $20,703 -$264
   Percent change -5.0% 21.0% -0.2%
General Fund Tax Revenuec $188,918 $206,495 $213,621
Growth Rates      
K-12 average daily attendance 0.8% 1.0% 0.7%
Per capita personal income (Test 2) 4.4    3.6   6.4   
Per capita General Fund (Test 3)d 7.3   9.6   3.8   
Maintenance Factor      
Amount created (+) or paid (-) $7,960 -$5,637 -
Total outstanding 7,960 2,695e $2,887e
Proposition 98 Reserve      
Deposit (+) or withdrawal (‑) -$8,413 $1,157 $376
Cumulative balance - 1,157 1,533
Operative Test suspended 1 1
       
a Excludes $938 million supplemental payment associated with Proposition 28 (2022). Beginning in 2024-25, this amount is folded into the Proposition 98 guarantee.
b Chapter 27 of 2024 (SB 154, Committee on Budget and Fiscal Review) suspended the Proposition 98 guarantee and set forth this amount as the intended funding level. Absent suspension, the guarantee would have been $106.4 billion.
c Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
d As set forth in the State Constitution, reflects change in per capita General Fund plus 0.5 percent.
e Includes adjustments to the previous year's maintenance factor for growth in per capita personal income and K-12 attendance as required by the State Constitution.