January 2026
Proposition 98 Funding Changes by Segment Since June
(In Millions)
| June Enacted Budget | Governor's Proposed Budget | Change From June | |||||||||
| 2024-25 | 2025-26 | 2024-25 | 2025-26 | 2026-27 | 2024-25 | 2025-26 | 2026-27a | Total Change | |||
| K-12 Education | $104,101 | $102,055 | $105,859 | $102,197 | $111,732 | $1,759 | $142 | $9,677 | $11,578 | ||
| California Community Colleges | 13,473 | 12,959 | 14,129 | 12,999 | 14,156 | 655 | 40 | 1,197 | 1,892 | ||
| Proposition 98 Reserveb | 455 | -455 | 3,845 | 664 | -407 | 3,390 | 1,119 | 48 | 4,557 | ||
| Settle Up (unallocated)c | 1,917 | — | — | 5,560 | — | -1,917 | 5,560 | — | 3,643 | ||
| Totals | $119,946 | $114,558 | $123,833 | $121,420 | $125,480 | $3,887 | $6,861 | $10,922 | $21,671 | ||
| a Reflects increase relative to 2025-26 enacted budget level. | |||||||||||
| b Proposition 98 Reserve established by Proposition 2 (2014). Amounts reflect deposit (+) or withdrawal (-). | |||||||||||
| c The state would be required to provide this funding in the future, assuming no decrease to the estimate of the Proposition 98 guarantee. | |||||||||||