July 2026
Proposition 98 Overview
Proposition 98 Key Inputs and Outcomes Under 2026-27 Budget Package
(Dollars in Millions)
| 2024-25 Final |
2025-26 Revised |
2026-27 Estimated |
|
| Minimum Guarantee | |||
| General Fund | $92,316 | $91,686 | $92,931 |
| Local property tax | 32,614 | 33,574 | 35,140 |
| Totals | $124,929 | $125,260a | $128,071 |
| Change From Previous Year | |||
| General Fund | $25,301 | -$630 | $1,246 |
| Percent change | 37.8% | -0.7% | 1.4% |
| Local property tax | $1,143 | $960 | $1,566 |
| Percent change | 3.6% | 2.9% | 4.7% |
| Total guarantee | $26,445 | $330 | $2,811 |
| Percent change | 26.9% | 0.3% | 2.2% |
| Inputs | |||
| General Fund taxesb | $214,983 | $233,244 | $234,509 |
| K-12 average daily attendance | 5,436,215 | 5,399,416 | 5,365,567 |
| Growth Rates | |||
| K-12 average daily attendance | -0.3%c | -0.7%c | -0.6% |
| Per capita personal income | 3.6 | 6.4 | 5.0 |
| Per capita General Fundd | 11.9 | 8.4 | 1.2 |
| Maintenance Factor | |||
| Amount created/paid (+/-) | -$8,292 | — | — |
| Amount remaining | — | — | — |
| Proposition 98 Reserve | |||
| Deposit/withdrawal (+/-) | $5,324 | $3,871e | — |
| Balance | 5,324 | 9,195 | $9,195 |
| Operative Test | 1 | 1 | 1 |
| a The June 2026 budget provides $121.3 billion in funding, meaning the state owes a $3.9 billion settle-up payment (assuming no reduction to the estimate of the guarantee). | |||
| b Reflects General Fund revenue that affects the calculation of the minimum guarantee. | |||
| c The State Constitution contains a hold-harmless provision that prevents any downward adjustments to the guarantee for declining attendance unless attendance also declined during the two preceding years. The attendance change this year is deemed to be zero due to this provision. | |||
| d Reflects per capita General Fund plus 0.5 percent (one of the Test 3 factors). | |||
| e Includes $500 million discretionary deposit. All other amounts deposited into the reserve are required by constitutional formulas. | |||