January 2026

Proposition 98 Overview

Proposition 98 Funding by Segment and Source

(Dollars in Millions Except Funding Per Student)

   2024-25
Revised		 2025-26
Revised		 2026-27
Proposed		 Change From 2025-26
Amount Percent
K-12 Education          
General Funda $77,558 $72,807 $80,913 $8,106 11.1%
Local property tax 28,302 29,389 30,819 1,430 4.9%
   Subtotals ($105,859) ($102,197) ($111,732) ($9,535) (9.3%)
California Community Colleges          
General Fund $9,794 $8,441 $9,371 $930 11.0%
Local property tax 4,335 4,558 4,785 227 5.0%
   Subtotals ($14,129) ($12,999) ($14,156) ($1,157) (8.9%)
Reserve Deposit/Withdrawal (+/-)b $3,845 $664 -$407 -$1,071 -161.3%
Settle Up (Unallocated)c - $5,560 - -$5,560 -100.0%
   Totals $123,833 $121,420 $125,480 $4,061 3.3%
           
Enrollment          
K-12 attendance 5,432,158 5,463,664 5,447,073 -16,591 -0.3%
Community college FTE students 1,096,150 1,090,231 1,094,809 4,578 0.4%
Funding Per Student          
K-12 Education $19,488 $18,705 $20,512 $1,807 9.7%
California Community Colleges 12,889 11,923 12,930 1,007 8.4%
           
a Includes funding for instruction provided directly by state agencies and the portion of State Preschool funded through Proposition 98.
b Proposition 98 Reserve established by Proposition 2 (2014). Amounts consist entirely of General Fund.      
c The state would be required to provide this funding in the future, assuming no decreases to the estimate of the Proposition 98 guarantee.
FTE = full-time equivalent.