Gov. Gavin Newsom announced his proposal for California’s 2026-27 budget Jan. 9, which included $125.5 billion for TK-14 education and predicted modest revenue growth amid economic uncertainty for the state.

Newsom’s education proposal committed to fully implementing Universal Transitional Kindergarten, school meals and the Expanded Learning Opportunities Program. He also announced a 2.41 percent cost-of-living adjustment for the Local Control Funding Formula and projected an increase in per-pupil spending, which would be $27,418 per pupil when accounting for all sources.

A central feature of the education proposal is the decision to underfund Proposition 98 by $5.6 billion, meaning the funded level of the Prop. 98 guarantee is $115.9 billion, rather than the calculated amount of $121.4 billion.

Legislative Advocate Kordell Hampton said on ACSA’s Legislative Lunch Break that the governor also previously withheld $1.9 billion from the 2024-25 budget.

“This is money that should, rightfully, be in school districts’ hands — trying to address and maintain programs and that stability for students, for teachers, for administrative staff,” he said.

Hampton said ACSA’s advocates sent a letter to the state Legislature, the governor’s office and the California Department of Finance urging the state to preserve the integrity of Prop. 98 and protect it from further manipulations.

“This is a huge blow in terms of providing that sustainability (for Prop. 98) that we continually ask for,” he said. “It sets schools back in terms of their planning.”

Legislative Advocate Diana Vu discussed the overall themes of the budget proposal for specific educational programs. She said Newsom continues to prioritize his signature initiatives, such as transitional kindergarten and Universal School Meals. Although the budget proposes a reduction of $67.9 million for school meals — reflecting last year’s overestimated revenue projections and higher meal reimbursement rates — it also includes one-time funding of $100 million for specialized kitchen equipment, infrastructure and training to support fresh meal preparation.

Vu said ACSA was particularly excited to see Newsom’s investment in ELO-P, increasing funding to $1,800 per pupil.

“ACSA has been pushing to stabilize this program, because we’d been hearing from the field over and over again that it has been difficult to plan without consistent funding,” she said. “We’ve heard from all of you the benefits of the program and how it has helped provide consistent care for working families and ongoing enrichment for students.”

ACSA Executive Director Dr. Edgar Zazueta said the initial budget doesn’t yet provide a full picture of how total education spending will impact districts this year.

“There’s going to be some volatility,” Zazueta said. “This is the place we’re at just given the economy”

Zazueta also highlighted uncertainty as Newsom nears the end of his term as governor. “This is really the last year that there will be a fulfillment of this vision,” he said. “Here in Sacramento, we may go in a different direction.”