2025–26 Budget Cycle: Where Are We Now?
Governor releases
proposed budget
Budget subcommittees
hold hearings
Updated budget
based on revenues
Constitutional
deadline
Final budget
enacted
First payments
go out
2025–26 Proposed Budget — Key Numbers
Based on the Governor's January 2026 Budget Proposal. Numbers will be updated after the May 15 Revision.
Education Budget Highlights — January Proposal
| Program | Description | Amount |
|---|---|---|
| LCFF — Cost of Living Adjustment | 2.41% COLA applied to base and supplemental/concentration grants statewide (~$73B total program) | ~$2.0B increase |
| Special Education (AB 602) | State base allocation to districts via SELPA. Does not include federal IDEA funds (~$1.5B additional) | ~$4.6B |
| Child Nutrition Programs | School meals (National School Lunch, School Breakfast, CACFP). Includes state and federal reimbursements | ~$3.8B |
| Home-to-School Transportation | $239M ongoing increase + $322M one-time for fleet modernization and route expansion | $561M |
| Child Care & Preschool | State subsidized child care, CalWORKs Stages 1–3, and California State Preschool Program | ~$3.2B |
| Universal Transitional Kindergarten (UTK) | Full phase-in for all eligible 4-year-olds. Drives significant new certificated and classified staffing | ~$2.1B |
| Prop 28 — Arts & Music Education | Voter-approved dedicated funding; at least 80% must be spent on certificated and classified staff salaries | ~$941M |
| Necessary Small Schools | LCFF add-on for rural schools too small to reach the per-ADA funding minimums through the base formula | +$30.7M |
| Total Prop 98 Guarantee (TK–14, All Funds) | $125.5B | |
| Source: California Department of Finance (DOF), 2025–26 January Governor's Budget (January 10, 2026); Legislative Analyst's Office (LAO), Education Analysis. Child Nutrition and Child Care figures include state and federal funds combined, approximate. Data as of April 27, 2026. | ||
Budget Phases — What to Watch
The Governor's opening proposal for 2025–26. It establishes the funding levels for LCFF, transportation, special education, and all other programs. This is the starting point for negotiations — not the final word. Key education number: $125.5 billion total for TK–14.
Both the Assembly and Senate hold budget subcommittee hearings on education. These are opportunities for the public, unions, and advocacy groups to testify. Subcommittees can modify the Governor's proposal — adding or cutting programs.
The most important budget event of the year. After April 15 tax collections are tallied, the Governor updates the proposed budget to reflect actual revenues. If revenues came in higher than expected, this is where new education funding appears. If lower, this is where cuts are proposed. Watch this date closely.
→ See our May Revision page for a full breakdown once it's released.
The Legislature must pass a balanced budget by June 15. A two-thirds vote is required. Conference committees reconcile differences between Assembly and Senate versions. This is often where final deals on school funding are struck.
The Governor signs the budget, typically in late June. The new fiscal year begins July 1, and the state's first principal apportionment payments go out to districts. Additional "trailer bills" may still modify program details after the main budget is signed.
For Union Members & Bargaining Teams
The state budget directly determines how much money flows to your district. A strong Prop 98 guarantee, a healthy LCFF COLA, and robust transportation funding all mean more money available for wages, benefits, and staffing. Know these numbers.
Official Sources
- Department of Finance — Budget Documents Official Governor's budget proposals, May Revision, and enacted budgets
- Legislative Analyst's Office — Education Analysis Independent, nonpartisan analysis of education budget — essential reading for those reviewing district budgets
- CDE — Principal Apportionment Data Download raw apportionment data for all districts directly from the California Department of Education
- EdSource — School Finance Coverage Accessible journalism on California education finance, written for practitioners and the public
- PPIC — California School Finance Primer Public Policy Institute of California's plain-language guide to how school finance works