January 2026

Proposition 98 Overview

2026-27 Changes in Proposition 98 Spending

(In Millions)

Revised 2025-26 Spending $115,860
Technical Adjustments  
Prior year one-time adjustments $968
LCFF adjustments 617
Various K-14 adjustments -318
K-12 categorical programs (declining attendance)a -125
Transitional kindergarten expansionb 116
Subtotal ($1,259)
Proposition 98 Reserve (withdrawal) -$407
K-12 Education  
Discretionary block grant (one time) $2,123
LCFF COLA (2.41 percent) 1,893
Deferral paydown 1,875
Community schools 1,000
Special Education 509
Teacher Residency Grant Program (one time) 250
COLA for select categorical programs (2.41 percent)c 230
Kitchen infrastructure and training (one time) 100
Expanded Learning Opportunities Program 62
Necessary Small Schools 31
Wildfire-related support for schools (one time) 23
COE funding to support school districts and charter schools 13
Charter School Facility Grant Program 7
FCMAT salary adjustment 1
California School Information Services 1
Science performance tasks 1
K-12 High Speed Network 1
Subtotal ($8,120)
California Community Colleges  
COLA for apportionments (2.41 percent) $241
Deferred maintenance (one time) 102
Student support block grant (one time) 100
Calbright College 38
Common Cloud Data Platform 41d
Credit for prior learning 37e
Enrollment growth (0.5 percent) 32
COLA for select categorical programs (2.41 percent)f 31
Healthy School Foods Pathway program 14
Apprenticeship RSI shortfall coverage (one time) 13
Subtotal ($648)
Total Changes $9,621
2026-27 Spending $125,480
a Applies to Child Nutrition, Special Education, and K-12 Mandates Block Grant. 
b Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
c Applies to the Foster Youth Services Coordinating Program, American Indian Early Childhood Education, Special Education, Child and Adult Care Food Program, Charter School Facility Grant Program, American Indian Education Centers, Equity Multiplier, and K-12 Mandates Block Grant.
d Consists of $5 million ongoing and $36 million one time.
e Consists of $2 million ongoing and $35 million one time.
f Applies to the Adult Education Program, apprenticeship programs, CalWORKs student services, campus child care support, Disabled Students Programs and Services, Extended Opportunity Programs and Services, and mandates block grant.
LCFF = Local Control Funding Formula, COLA = cost-of-living adjustment, FCMAT = Fiscal Crisis and Management Assistance Team, and RSI = related and supplemental instruction