The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - We recommend requiring unallocated funding from community schools grants to revert back to the state at the end of each fiscal year. We also recommend reverting the $485  million currently set aside for extension grants.
https://lao.ca.gov/Publications/Report/5131

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - In 2019 ‑20, however, the state adopted a new law prohibiting spending reductions after the fiscal year ends. This law allows the state to reduce spending during its first recalculation of the guarantee, but prevents reductions during the second recalculation at the end of the next fiscal year.
https://lao.ca.gov/Publications/Report/5110

Assessing a Shift to Enrollment-Based School Funding

Jan 6, 2026 - Our  November 2025 fiscal outlook, however, projects Test 1 will likely remain operative through the end of our forecast in 2029 ‑30. This projection is mainly related to declines in births and reductions in the school ‑age population —trends that are unlikely to reverse  quickly or change in response to enrollment ‑based funding.
https://lao.ca.gov/Publications/Report/5100