✅ Final Budget Deal Reached — Legislature Passes Budget June 15; Deal Announced June 26
The California Legislature passed the 2026-27 budget on June 15 — meeting the constitutional deadline. Both chambers voted on the same joint bill (AB 109): Senate 28–9, Assembly 59–18. On June 26, Governor Newsom, Senate President pro Tempore Limón, and Assembly Speaker Rivas announced a final three-party budget agreement, with the Legislature scheduled to vote on ~20 implementing bills on June 29.
The final deal balances the General Fund with zero deficit for both 2026-27 and 2027-28. Key education outcomes: 4.31% LCFF COLA confirmed, record $21,148 per-pupil Prop 98 funding, +$1.8B ongoing Special Ed, +$1B Community Schools, $5B one-time block grant, and 33% of higher revenues earmarked to pay down the $3.9B Prop 98 settle-up obligation. The preschool structural shift into Prop 98 was adopted. The Governor is expected to sign before July 1.
Legislature vs. Governor — COLA & Key Education Programs
Note: The Senate and Assembly passed the same unified budget. This table compares the Legislature's passed budget to Gov. Newsom's May Revision baseline.
| Program | Gov. May Revision May 14, 2026 |
Legislature Passed June 15, 2026 |
Difference |
|---|---|---|---|
| LCFF COLA | 4.31% "Super COLA" (2.87% statutory + 1.44% discretionary; ~$4.0B increase) |
4.31% adopted +$2B more for schools from higher revenue projections |
+$2B statewide Same COLA rate; Legislature adds more via Prop 98 |
| Special Education | $2.4B ongoing increase AB 602 rate: $1,340/pupil; 2.87% COLA |
$2.4B ongoing (same) + $450M for student teachers in SpEd/STEM |
Matching base Legislature adds teacher pipeline funding |
| Child Nutrition | ~$3.8B total State contribution down $67.9M; universal meals maintained |
~$3.8B + $700M one-time $700M for school kitchen upgrades & food pantries |
+$700M one-time Legislature adds major kitchen investment |
| Child Care | ~$6.8B total; 2.41% COLA Some slot reductions (~$61M); existing slots maintained |
$270M added (general fund) Subsidized care for 22,770 more low-income children |
+$270M, +22,770 slots Legislature reverses some reductions |
| Transportation | $561M total $239M ongoing + $322M one-time for fleet modernization |
$561M (same adopted) No additional changes proposed |
Matching Legislature adopted Governor's proposal |
| Transitional Kindergarten (UTK) | $2.1B UTK Preschool COLA: 2.01%; state preschool stays in gen. fund |
$2.1B UTK (same) Proposes moving all state preschool ($800M) into Prop 98 — controversial structural change |
Structural change Shifts preschool into Prop 98 — debated by CSBA |
| Sources: EdSource (June 15, 2026), CASBO May Revision Analysis, Senate Budget Committee, Jason Sisney #CABudget info (June 27, 2026). Legislature adopted Gov. Newsom's May Revision as a baseline and added programs above. Final three-party budget deal announced June 26, 2026; Governor expected to sign before July 1. | |||
Legislation Summary — Under Construction
This page will publish a curated year-end summary of all newly signed California education legislation — with a focus on what matters most to school workers, unions, and those reviewing district budgets. Sourced from the CA Assembly Education Committee's annual bill summary.
◈ Launching Later in 2026What This Page Will Cover
Teacher & Certificated Staff Rights
New laws affecting credentialing, evaluation processes, dismissal procedures, and classroom conditions for certificated employees.
Classified Staff Protections
Legislation impacting classified employees — including custodians, bus drivers, cafeteria workers, paraprofessionals, and administrative staff.
Labor Rights & District Protections
New laws on collective bargaining, union organizing rights, public employee labor relations, and PERB (Public Employment Relations Board) procedures.
Hot-Button & Controversial Legislation
Bills that drew significant debate — including those that passed narrowly, were vetoed, or sparked strong reactions from unions and management alike. Jai will determine which issues to feature.
Legislative Topic Areas to Watch in 2026
These are the policy areas our team is tracking as the 2025–26 California legislative session concludes. Final summaries will be published after the Governor's bill-signing deadline.
Classified Employee Due Process Reform
Several bills introduced in 2025–26 address notice, hearing, and appeal rights for classified employees facing disciplinary action or layoff.
Labor RightsExpanded Parental Leave & Paid Time Off
Bills expanding parental leave rights for public school employees, including classified staff who historically received fewer protections than certificated employees.
Worker BenefitsArtificial Intelligence in Schools
Emerging legislation on AI use in classrooms, AI tools for evaluation or grading, and disclosures to unions when AI-based systems affect employment decisions.
Technology PolicyMental Health & Safety Staffing Ratios
Legislation setting minimum ratios for school counselors, psychologists, and social workers — and what it means for staffing decisions and union negotiations.
StaffingLiteracy Instruction Mandates & Curriculum
Bills requiring specific reading instruction methods — and their implications for teacher training requirements, assignment rules, and workload.
Curriculum PolicyMinimum Wage & Salary Floor Legislation
Any legislation establishing minimum salary or compensation floors for classified or certificated school employees — a perennial bargaining leverage issue.
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