July 2025

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under 2025-26 Budget Package

(Dollars in Millions)

  2023-24
Final		 2024-25
Revised		 2025-26
Estimated
Minimum Guarantee      
General Fund $67,014a $87,628 $80,738
Local property tax 31,470 32,317 33,821
   Totals $98,484b $119,946 $114,558
Change From Prior Year      
General Fund -$6,932 $20,614 -$6,891
   Percent change -9.4% 30.8% -7.9%
Local property tax $1,696 $847 $1,503
   Percent change 5.7% 2.7% 4.7%
Total guarantee -$5,235 $21,461 -$5,387
   Percent change -5.0% 21.8% -4.5%
Inputs      
General Fund Tax Revenuec $191,840 $209,813 $204,027
K-12 average daily attendance 5,451,748 5,453,903 5,479,503
Growth Rates      
K-12 average daily attendance 0.9% 0.04% 0.5%
Per capita personal income (Test 2) 4.4% 3.6% 6.4%
Per capita General Fund (Test 3)d 8.6% 9.3% -2.5%
Maintenance Factor      
Amount created (+) or paid (-) $8,002 -$5,466 —
Total outstandinge 8,002 2,829 $3,026
Proposition 98 Reserve      
Deposit (+) or withdrawal (‑) -$8,413 $455 -$455
Cumulative balance — 455 —
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, Test 2 would have applied and the guarantee would have been $106.5 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. This adjustment is $293 million in 2024-25 and $196 million in 2025-26.