2026–27 Budget Cycle: Where Are We Now?
Governor releases
proposed budget
Budget subcommittees
hold hearings
Updated budget
released early
Budget passed
Senate 28–9, Assembly 59–18
Legislature & Governor
finalize deal
Governor signs;
payments go out
Legislature Passes Budget — Schools Get Billions More; Negotiations With Newsom Begin
The California Legislature passed the 2026-27 state budget on June 15, meeting the constitutional deadline. Both chambers voted on the same unified bill (AB 109) — the Senate approved 28–9 and the Assembly 59–18. The Legislature projected ~$5B more in revenue than the Governor's May Revision, translating to $2B more for TK-12 schools under Prop 98. Two-week negotiations with the Governor now begin ahead of the July 1 fiscal year start.
- LCFF COLA: 4.31% adopted — Legislature kept the Governor's "Super COLA" and adds $2B more from higher revenue projections
- Special Education: $2.4B ongoing increase — matches May Revision; Legislature adds $450M for student teacher stipends (STEM & SpEd)
- Child Nutrition: +$700M one-time — for school kitchen upgrades and family food pantries
- Child Care: +$270M — subsidized care for 22,770 additional children from low-income families
- Discretionary Block Grant: $5B one-time — districts & charters can spend freely; same as May Revision
- $3.9B withholding unresolved — Legislature acquiesced but demanded a "reliable repayment schedule"; legal challenge still possible
- Preschool into Prop 98 (controversial) — Legislature proposes moving $800M in nonprofit preschool funding under Prop 98; CSBA opposed
View Legislature vs. Governor Comparison Table →
May Revision Released: Schools Get More — With One Catch
Gov. Newsom released the 2026-27 May Revision on May 14, 2026 — one day early. The revised budget significantly boosts education funding, including a higher COLA, record special education investment, and a doubled discretionary block grant. The central controversy: Newsom is still withholding $3.9 billion in constitutionally guaranteed Prop 98 funds, while releasing $1.7B of the $5.6B he had withheld in January.
- Prop 98 Guarantee: record $127.1B — up from January's $125.5B; per-pupil funding hits record $21,013
- COLA raised to 4.31% — up from statutory 2.87%; LCFF increases from $3.1B to $4.0B
- Special Ed: $2.4B total increase — largest in state history; $1.8B added above January's $509M proposal
- Block Grant: $5B — doubled from January's $2.8B; districts have wide spending discretion
- $3.9B still withheld — CTA and CSBA threatening legal action over what they call a constitutional obligation
- Preschool COLA cut to 2.01% — reduced from January's 2.41%; draws criticism from early ed advocates
2026–27 Budget — Key Numbers (May Revision)
Updated with May Revision figures released May 14, 2026. January proposal numbers shown for comparison.
Education Budget Highlights — May Revision vs. January
| 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 2026–27. 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 Prop 98 Guarantee for TK–14; $149.1 billion in total TK–12 funding (all sources).
→ Read the full summary of the January 2026 Budget Proposal for TK–12 Education →
The Legislative Analyst's Office — California's independent fiscal watchdog — analyzed nine major K–12 proposals in the Governor's budget and issued formal recommendations to the Legislature. The LAO recommends adopting the LCFF COLA, Special Education increase, and major one-time investments, while recommending the Legislature reject or restructure the $1 billion Community Schools ongoing program and several smaller proposals. The LAO also issued a fiscal caution around unpriced stock market risk.
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.
Gov. Newsom released the May Revision on May 14, 2026. Key highlights: COLA raised to 4.31% (from 2.87%), Prop 98 Guarantee at a record $127.1B, Special Education increase of $2.4B (largest in state history), and the discretionary block grant doubled to $5B. The central controversy: $3.9B in constitutionally guaranteed Prop 98 funds remain withheld until next year.
→ See our May Revision page for the full breakdown, updated comparison table, and News Flash summary.
The Legislature passed the 2026-27 budget (AB 109) on June 15. Both chambers voted on the same unified bill — the Senate approved 28–9, the Assembly 59–18. The Legislature adopted nearly all of the May Revision and added billions more, including a record $127B+ for TK-14 schools. Key education additions: $700M for school kitchens, $270M for 22,770 new child care slots, and $450M for student teacher stipends. The $3.9B withholding issue remains unresolved but the Legislature demanded a repayment schedule.
The Governor and Legislature are now in active negotiations to reconcile differences and finalize the budget before the July 1 fiscal year deadline. Key open issues: the $3.9B Prop 98 withholding and repayment schedule, the proposed shift of state preschool into Prop 98 (opposed by CSBA), and the Legislature's higher revenue projections. The final enacted budget may differ from what the Legislature passed on June 15.
The Governor signs the budget, typically in late June. The new fiscal year begins July 1. Additional "trailer bills" may still modify program details after the main budget is signed. The budget signing triggers the next step: CDE certifies the Advance Apportionment for the new fiscal year.
June 19, 2026 — 2025–26 P-2 (Second Principal Apportionment): CDE publishes final apportionment amounts for all ~2,200 LEAs based on actual attendance data collected through May 1. This is the last official funding certification for the current school year — it supersedes the P-1 figures this site currently shows. We will update our district data table when the CDE P-2 files are released.
July 2026 — 2026–27 Advance Apportionment: Certified within weeks of the Governor's signature, this is the first official certification for the new fiscal year. It sets monthly state aid payments for districts from July through January and is based on prior-year data. The CDE typically certifies the Advance in mid-July (the 2025–26 Advance was certified July 18, 2025).
The P-1 for 2026–27 — which will reflect actual current-year attendance — is expected in February 2027 and will be the basis for the next full YOY comparison on this site.
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