January 2026
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. | |
| c 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 | |