January 2026

Proposition 98 Overview

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.