The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - Make Optional Proposition 98 Reserve Deposit. An additional one ‑time deposit into the Proposition 98 Reserve would increase the protection for ongoing programs in the event of an economic downturn, reducing the likelihood of cuts or deferrals.
https://lao.ca.gov/Publications/Report/4473

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Proposition   98 “Settle Up ” ($1.9   Billion). Proposition  98 (1988) sets a minimum funding requirement for schools and community colleges based on formulas in the State Constitution. The state makes an initial estimate of this requirement when it enacts the budget, then revises this estimate over the following two years to reflect updated data.
https://lao.ca.gov/Publications/Report/5079

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - Under two voter initiatives, the State Constitution requires the state to set aside a share of revenues for schools and community colleges (Proposition  98, 1988) and debt payments and reserve deposits (Proposition  2, 2014).
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - Rebenching Proposition   98 for Wildfire ‑Related Property Tax Losses. The May Revision proposes rebenching the Proposition  98 minimum funding guarantee to account for property tax revenue losses resulting from the January 2025 Los Angeles wildfires.
https://lao.ca.gov/Publications/Report/5044

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is because constitutional spending requirements under Proposition  98 (1988) and Proposition  2 (2014) almost entirely offset revenue gains. Moreover, we estimate costs in other programs to be about $6  billion higher than anticipated.
https://lao.ca.gov/Publications/Report/5091

Rethinking California's Reserve Policy

Apr 10, 2025 - As a result, Proposition 98 creates a separate budget for K‑14 education that sits within the state’s larger budget. Budget Conditions Can Diverge. The budget situation within Proposition  98 can diverge sharply from the rest of the budget.
https://lao.ca.gov/Publications/Report/5028

The 2022-23 Budget: Overview of Proposition 98 Proposals [Publication Details]

Jan 27, 2022 - The 2022-23 Budget: Overview of Proposition 98 Proposals [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4502

The 2024-25 Budget: California's Fiscal Outlook

Dec 7, 2023 - Proposition 98 Proposition 98 Sets Minimum Level of School Funding. Proposition 98 (1988) amended the California Constitution to establish a minimum annual funding requirement for schools and community colleges.
https://lao.ca.gov/Publications/Report/4819

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - Offsetting this, our projections for school and community college spending are higher, reflecting Proposition  98 (1988) formulas that typically increase (or decrease) with changes in revenue. Additionally, our estimates for spending in other areas —primarily health and human services programs —are somewhat higher than the administration ’s projections.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - For example, the minimum funding level for schools and community colleges is set by the constitutional requirements of Proposition  98 (1988). While the Legislature can change how funds within Proposition  98 are distributed, funding less than the constitutional minimum in any particular year requires a two-thirds vote and creates a future obligation for more school funding in subsequent budgets.
https://lao.ca.gov/Publications/Report/4983