July 2024

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under 2024-25 Budget Package

(Dollars in Millions)

   2022-23
Final		 2023-24
Revised		 2024-25
Estimated
Proposition 98 Funding      
General Fund $73,946a $67,095b $82,612
Local property tax 29,774 31,389 32,670
   Totals $103,720 $98,484c $115,283
Change From Prior Year      
General Fund -$9,808 -$6,851 $15,517
   Percent change -11.7% -9.3% 23.1%
Local property tax $2,973 $1,615 $1,281
   Percent change 11.1% 5.4% 4.1%
Total funding -$6,835 -$5,235 $16,798
   Percent change -6.2% -5.0% 17.1%
Inputs      
General Fund tax revenued $176,979 $185,490 $200,107
K-12 average daily attendancee 5,405,197 5,468,503 5,508,796
Growth Rates      
K-12 average daily attendance 1.0% 1.2% 0.7%
Per capita personal income (Test 2) 7.6    4.4    3.6   
Per capita General Fund (Test 3)f -18.8    5.4    8.2   
Maintenance Factor      
Amount created (+) or paid (-) - $8,329 -$4,072
Total outstanding - 8,329 4,623g
Proposition 98 Reserve      
Deposit (+) or withdrawal (-) $272 -$8,413 $1,054
Cumulative balance 8,413 - 1,054
Operative Test 1 suspended 1
       
a Includes $6.2 billion in funding that exceeds the revised calculation of the Proposition 98 guarantee. For the purpose of calculating the guarantee in future years, the $6.2 billion is attributed to 2022-23. For state budgeting and accounting purposes, the $6.2 billion is accrued to the 2026-27 through 2035-36 fiscal years.
b Excludes $938 million supplemental payment associated with Proposition 28 (2022). Beginning in 2024-25, this amount is folded into the Proposition 98 guarantee.
c Chapter 27 of 2024 (SB 154, Committee on Budget and Fiscal Review) suspends the Proposition 98 guarantee and sets the funding level for schools and community colleges at this amount. Absent suspension, the Proposition 98 guarantee would have been $106.8 billion.
d Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
e Includes attendance attributable to the expansion of transitional kindergarten.
f Reflects change in per capita General Fund plus 0.5 percent. 
g As required by the California Constitution, the total outstanding maintenance factor balance in 2024-25 includes an increase of $366 million to account for growth in per capita personal income and K-12 attendance.