The California Teachers Association is suing the state of California for withholding nearly $6 billion in funds it says the state owes public schools.

The lawsuit, which was filed Sept. 15, seeks funds that CTA says are guaranteed by Prop. 98, the voter-approved constitutional amendment that has set the minimum yearly funding level in K-12 schools and community colleges for nearly 40 years.

CTA has filed a petition for a writ of mandate and a complaint for declaratory relief seeking intervention from the courts to recuperate the $3.9 billion withholding in 2025-26, declare the $1.9 billion withholding in 2024-25 as unconstitutional, and safeguard against future additional withholding of public school funding.

ACSA strongly opposed the withholding throughout the last two budget adoption cycles, as delaying constitutionally guaranteed funding creates greater uncertainty for schools already making difficult staffing, program, and budget decisions. ACSA is aligned with CTA in challenging the withholding and intends to engage on this issue as the legal proceedings move forward.

“We are demanding a return of the funds that have been withheld so that our students and communities can be saved from yet another year of devastating educator layoffs and unnecessary cuts,” said California Teachers Association President David Goldberg, in a news release. “The law is clear. We will see this lawsuit through to the very end. We believe in our legal standing because we believe in the Californians who passed Prop. 98 decades ago and we believe in Californians today who love our public schools. The governor can end this harm to students and communities anytime – return the withheld funds immediately and declare that withholding is a violation of the constitution.”

Gov. Gavin Newsom has said withholding the funds was necessary as a hedge against potential decreases in revenue and to prevent the state from having to make mid-year cuts. The state’s Department of Finance has urged fiscal caution because California’s revenues are dependent on volatile sources such as capital gains and income tax. According to CTA, nearly 1,000 public school educators received layoff notices last school year following the governor’s proposal to withhold Prop. 98 dollars in January.

The withheld dollars are affecting the quality of schools at a time when school staff are worried about making ends meet. According to a recent CTA survey of 2,000 educators, 80 percent believe that California schools don’t have enough resources to meet student needs, and 83 percent are concerned about affording basic cost of living expenses, like gas, groceries and electric bills.

Goldberg pointed out that while Gov. Gavin Newsom touts California as the top state for venture capital, California fails to invest in its students: The state ranks 36th in the nation on per pupil spending and ranks fifth among the nation for the highest educator-to-student ratios in the country.

“California is the fourth largest economy in the world — how are cuts to public schools on the table?” Goldberg asked.