January 2026

Proposition 98 Overview

2024-25 Changes in Proposition 98 Spending

(In Millions)

2024-25 Spending in 2025-26 Budget Act $119,946
Technical Adjustments  
Various K-14 adjustments $96
Transitional kindergarten expansiona -91
LCFF adjustments -68
Subtotal (-$64)
Proposition 98 Reserve (deposit) $3,390
K-12 Education  
Discretionary block grant $1,068
Learning Recovery Emergency Block Grant 757
Dual enrollment 100
Subtotal ($1,926)
California Community Colleges  
2025-26 deferral repayment $408
2025-26 apportionments shortfall coverage 89
2025-26 additional enrollment growth (1.0 percent)b 55
Subtotal ($552)
Total Changes $5,804
Unallocated funds (settle up)c -$1,917
2024-25 Revised Spending $123,833
a Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
b Increases budgeted growth from the enacted 2025-26 level of 0.57 percent to 1.57 percent. The associated ongoing cost is built into apportionments in 2026-27.
The 2025 Budget Act included $1.9 billion in unallocated Proposition 98 funds. The Governor's proposed 2026-27 budget allocates these funds for various purposes.
LCFF = Local Control Funding Formula.