May 2025

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under the May Revision

Dollars in Millions

  2023-24 2024-25 2025-26
Minimum Guarantee      
General Fund $67,094a $86,620 $80,747
Local property tax 31,390 32,317 33,821
   Totals $98,484b $118,938 $114,568
Change From Prior Year      
General Fund -$6,852 $19,526 -$5,873
   Percent change -9.3% 29.1% -6.8%
Local property tax $1,617 $927 $1,503
   Percent change 5.4% 3.0% 4.7%
Total guarantee -$5,235 $20,453 -$4,369
   Percent change -5.0% 20.8% -3.7%
Inputs      
General Fund Tax Revenuec $191,840 $208,743 $204,041
K-12 average daily attendance 5,451,748  5,453,903 5,479,503
Growth Rates      
K-12 average daily attendance 0.9% 0.04% 0.5%
Per capita personal income (Test 2) 4.4 3.6 6.4
Per capita General Fund (Test 3)d 8.6 8.8 -2.0
Maintenance Factor      
Amount created (+) or paid (-) $8,002 -$4,864 —
Total outstandinge 8,002 3,431 $3,669
Proposition 98 Reserve      
Deposit (+) or withdrawal (‑) -$8,413 $540 -$540
Cumulative balance — 540 —
Operative Test suspended 1 1
       
a Excludes $938 million supplemental payment associated with Proposition 28 (2022). Beginning in 2024-25, this amount is folded into the Proposition 98 guarantee.
b Chapter 27 of 2024 (SB 154, Committee on Budget and Fiscal Review) suspended the Proposition 98 guarantee and set forth this amount as the intended funding level. Absent suspension, Test 2 would have applied and the guarantee would have been $106.5 billion.
c Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
d As set forth in the State Constitution, reflects change in per capita General Fund plus 0.5 percent.
e Includes adjustments to the previous year's maintenance factor for growth in per capita personal income and K-12 attendance as required by the State Constitution. This adjustment is $293 million in 2024-25 and $238 million in 2025-26.