January 2026
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. | |
| c 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. | |