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

Feb 4, 2026 - It also prompted a complex law that excludes certain school spending from Proposition  98 calculations when the state overestimates the guarantee due to tax ‑filing extensions. The June 2025 budget alluded to this law in its explanation for the $1.9  billion settle ‑up delay in 2024 ‑25, and the Governor ’s budget makes a similar reference to explain the proposed delay in 2025 ‑26.
https://lao.ca.gov/Publications/Report/5110