January 27, 2025
Gov. Gavin Newsom released his proposed California state budget Jan. 10, emphasizing his administration’s ongoing commitments to public education and full implementation of programs such as Universal Transitional Kindergarten.
Newsom proposed to fund the Proposition 98 guarantee at $117.6 billion out of a total budget of $322.3 billion. The administration’s proposed cost-of-living adjustment is 2.43 percent, which would apply to LCFF and categorical programs.
The governor said that economic uncertainty facing Californians may require substantial changes to his proposed budget by the time of the May Revision. The Southern California wildfires and the federal Trump administration could impact revenues, he said, and may necessitate reforms to state reserves.
Newsom’s administration said they planned to make a mandatory deposit of $376 million for 2025-26 into the Prop. 98 rainy day fund, bringing the total reserve fund to $1.5 billion by the end of the year.
ADVERTISEMENT
Budget proposal indicates economic concerns
Other highlights of the proposed budget include the Student Success and Professional Development Discretionary Block Grant with a one-time fund of $1.8 billion. The fully discretionary grant would provide local educational agencies with funds to support local priorities. Newsom noted specifically that funds could support teacher professional development pertaining to the Mathematics Framework, the English Language Arts/English Language Development Framework and the Literacy Roadmap.
He also highlighted support for recruitment and retention strategies, dual enrollment expansion and career pathways.
ACSA Executive Director Edgar Zazueta expressed appreciation for Newsom’s proposal on ACSA’s Legislative Lunch Break.
“We’re not talking about cuts,” he said. “We’re not talking about trying to close that deficit. This is a budget that’s very much about (following) through on the commitments the state has made.”
ADVERTISEMENT
Director of Governmental Relations Iván Carrillo said the state will face unique challenges during this budget process. He said the governor’s Prop. 98 proposal is under the minimum guarantee by $1.6 billion.
“If the revenues come in and allow for a full funding of the original number, it would come up as a ‘true-up’ at a later time,” Carrillo said. “Anytime you talk about underfunding Prop. 98, that comes as an area of real concern for us. You’re taking funding off the table.”
Though the state would have to increase that number by the time the budget is adopted to meet the minimum guarantee, Carrillo said the proposal indicates a possibility that funds are delayed going out to the field. ACSA will make sure the voices of school leaders and students are heard in the Legislature during the budget process, he said. Read the Governmental Relations’ team’s budget summary at content.acsa.org/proposed-2025-26-state-budget.