January 2026

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under Governor's Budget

(Dollars in Millions)

  2024-25 2025-26 2026-27
Minimum Guarantee      
General Fund $91,197 $87,473 $89,877
Local property tax 32,636 33,947 35,604
   Totals $123,833 $121,420 $125,480
Change From Prior Year      
General Fund $24,182 -$3,724 $2,404
   Percent change 36.1% -4.1% 2.7%
Local property tax $1,166 $1,311 $1,656
   Percent change 3.7% 4.0% 4.9%
Total guarantee $25,349 -$2,413 $4,061
   Percent change 25.7% -1.9% 3.3%
General Fund Tax Revenuea $213,420 $222,181 $228,467
Growth Rates      
K-12 average daily attendance -0.4% 0.6% -0.3%b
Per capita personal income (Test 2) 3.6    6.4    4.4    
Per capita General Fund (Test 3)c 11.4   4.1    3.3    
Maintenance Factor      
Amount created (+) or paid (-) -$7,768 — —
Total outstandingd 523 $560 $585
Proposition 98 Reserve      
Deposit (+) or withdrawal (‑) $3,845 $664 -$407
Cumulative balance 3,845 4,509 4,102
Operative Test 1 1 1
       
a Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
b This decline is deemed to be zero for the purpose of calculating the guarantee. As set forth in the State Constitution, an attendance decline does not reduce the guarantee unless attendance has declined in the two previous years.
c As set forth in the State Constitution, reflects change in per capita General Fund plus 0.5 percent.
d 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.