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
Newsom + Legislature
announce final deal
Signed as AB 109,
SB 111 & AB 126
CDE certified
2026–27 Advance
CDE certifies
2026–27 P-1
Source: California Department of Finance, 2026–27 Governor's Budget & Enacted Budget Act (AB 109, SB 111, AB 126); California Department of Education, Principal Apportionment certifications. See individual milestones below for full citations.
Final Budget Deal Reached — Zero Deficit Both Years; Record School Funding Confirmed
Governor Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas announced a final 2026-27 state budget agreement on June 26, 2026. The Legislature is scheduled to vote on approximately 20 implementing bills — including the education omnibus trailer bill (SB/AB 126) — on Monday, June 29. The deal balances the General Fund with zero deficit for both 2026-27 and 2027-28 and delivers record per-pupil funding. Full analysis by Jason Sisney (Assembly Budget advisor) available at jasonsisney.substack.com →
- Record per-pupil funding: $21,148 from Prop 98 (up from $21,013 in May Revision); $28,207 total with federal/other sources
- LCFF COLA confirmed at 4.31% with $2.2B LCFF increase — the "Super COLA" is now final
- Special Education: +$1.8B ongoing — base rate and cost pool increases (the May Revision's $2.4B total increase confirmed)
- Community Schools: +$1B ongoing including Promise Neighborhood partnerships
- $5B one-time block grant for dual enrollment, career pathways, deferred maintenance, professional development through 2032
- $1.5B + $500M for school facilities — Prop 2 bonds for construction; $500M for kitchen infrastructure and food pantries
- 22,770 new child care slots; 2% COLA for all child care programs
- $3.9B Prop 98 settle-up: 33% of higher-than-projected revenues earmarked to pay down the outstanding obligation
- Education governance change: CDE formally moved into the Executive Branch
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 (Final Budget Deal)
Updated with final budget agreement figures (June 26, 2026). Some figures from May Revision; final enacted amounts may reflect minor adjustments when bills are signed.
Source: Jason Sisney, #CABudget info (Substack) — "FYI: summaries of 2026-27 state budget plan," June 27, 2026; California Department of Finance, Governor's June 26, 2026 final budget announcement.
Education Budget Highlights — Final Deal vs. 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 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.
Governor Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas announced a final 2026-27 budget agreement on June 26. The deal balances the General Fund with zero deficit for both 2026-27 and 2027-28. Key education wins: 4.31% LCFF COLA confirmed, record $21,148 per-pupil funding, +$1.8B ongoing Special Education, +$1B ongoing Community Schools, $5B one-time block grant, and a 33%-of-surplus mechanism to pay down the $3.9B Prop 98 settle-up obligation. The preschool structural shift into Prop 98 was adopted. The Legislature votes on ~20 implementing bills on June 29.
The Legislature voted on the budget and trailer bills on June 29, and the Governor signed them into law as AB 109 (Chapter 19, Statutes of 2026), SB 111 (Chapter 21, Statutes of 2026), and AB 126 (Chapter 65, Statutes of 2026) before the July 1 fiscal year start. These are the statutes CDE cited when it calculated the 2026–27 Advance Apportionment below.
June 19, 2026 — 2025–26 P-2 (Second Principal Apportionment): CDE published final apportionment amounts of $51,176,959,271 statewide for all 2,247 LEAs based on actual attendance data collected through May 1. This is the last official funding certification for the 2025-26 school year — it superseded the P-1 figures this site previously showed.
July 20, 2026 — 2026–27 Advance Apportionment: CDE certified the first official certification for the new 2026-27 fiscal year, right on the statutory July 20 deadline. Statewide total: $59,090,514,758 — up 15.5% from 2025–26 P-2. It sets monthly state aid payments for districts from July through January, calculated by applying statewide COLA and rate adjustments to each LEA's 2025–26 P-2 funding. Our district data table and the year-over-year comparison have been updated to Advance vs. 2025–26 P-2 (updated July 20, 2026), per this site's standing comparison policy. Read the full breakdown of what changed →
First Principal Apportionment (P-1): This is the first certification of the 2026–27 school year based on actual attendance data. Districts submit attendance data by January 15, 2027; CDE certifies apportionment by the statutory February 20 deadline. The 2025–26 P-1 was certified February 18, 2026 — expect the same timing for 2026–27.
The P-1 will reflect actual 2026-27 funded ADA for all ~2,200 LEAs and will include the full effect of the 4.31% LCFF COLA (once the budget is signed) on each district's allocation. This site will update its district-by-district data table when the 2026–27 P-1 files are released in February 2027. Source: CDE Principal Apportionment Deadlines.
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