January 2021

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under Governor's Budget

(Dollars in Millions)

  2019-20
Revised		 2020-21
Revised		 2021-22
Proposed
Minimum Guarantee      
General Fund $54,470 $56,942 $60,835a
Local property tax 25,073 25,887 27,270
   Totals $79,544 $82,828 $88,105
Change From Prior Year      
General Fund -$275 $2,471 $3,894
   Percent change -0.5% 4.5% 6.8%
Local property tax $1,297 $813 $1,383
   Percent change 5.5% 3.2% 5.3%
Total guarantee $1,022 $3,284 $5,277
   Percent change 1.3% 4.1% 6.4%
General Fund Tax Revenueb $143,373 $149,831  $153,970
Growth Rates      
K-12 average daily attendance -0.5% -0.5%c -0.5%
Per capita personal income (Test 2) 3.9    3.7    1.7   
Per capita General Fund (Test 3)d 0.6    4.8    2.8   
Operative Test 1 1 1
Proposition 98 Reserve      
Deposit (+) or withdrawal (‑) — $747 $2,241
Cumulative balance — 747 2,987
 
a Includes $2.3 billion supplemental payment. 
b Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
c For calculating the guarantee, Chapter 24 of 2020 (SB 98, Committee on Budget and Fiscal Review) deems the change in attendance in 2020‑21 to be the same as the change in 2019‑20.
d As set forth in the State Constitution, reflects change in per capita General Fund plus 0.5 percent.
Note: No maintenance factor obligation is created, paid, or owed over the period.