January 2026

Proposition 98 Overview

2025-26 Changes in Proposition 98 Spending

(In Millions)

2025-26 Budget Act Spending $114,558
Technical Adjustments  
LCFF adjustments $588
Transitional kindergarten expansiona -275
Various K-14 adjustments 236
Subtotal ($549)
Proposition 98 Reserve  
Elimination of reserve withdrawal $455
Mandatory deposit 424
Discretionary deposit 240
Subtotal ($1,119)
K-12 Education  
Discretionary block grant -$428
Reading difficulties screening 40
Science performance tasks 1
Wildfire-related support for schools b
Subtotal (-$387)
California Community Colleges  
Deferred maintenance (one time) $19
Total Changes $1,301
Unallocated funds (settle up)c $5,560
2025-26 Revised Spending $115,860
a Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
b Reflects $436,000.
The state is required to allocate this amount for schools and community colleges in the future, assuming no changes to the estimate of the Proposition 98 guarantee.
LCFF = Local Control Funding Formula