California’s revenues are coming in higher than expected, offering potential breathing room in the upcoming budget cycle. But beneath the surface, lawmakers are grappling with a deeper issue: revenue volatility and long-term fiscal stability. A recent hearing highlighted structural risks tied to income tax concentration and reserve policy decisions that could shape future school funding. What happens next may determine how durable this revenue bump really is.

Federal eligibility changes could significantly reduce access to health care and food assistance in California, placing new pressure on the state’s General Fund. At the same time, lawmakers are revisiting a long-standing corporate tax policy that could reshape state revenues. What could this mean for Proposition 98 and school funding in the years ahead?

Strikes and labor actions are rippling across California, touching sectors from health care to education and raising broader questions about affordability, staffing, and long-term funding. At the same time, a growing slate of potential ballot measures signals an active and politically charged year ahead. As early budget discussions begin, these converging pressures could shape the policy landscape facing schools and local governments.

California’s political landscape is shifting fast. A growing field of gubernatorial candidates is beginning to take shape ahead of the June primary, while developments at the national level could influence economic conditions facing schools and public agencies. With voters, markets, and policymakers watching closely, the year ahead is already full of uncertainty.

California’s education landscape is shifting on multiple fronts. Changes in the Superintendent of Public Instruction race, evolving political dynamics, and new enrollment trends are raising important questions about leadership, funding stability, and long-term planning for school districts. As communities adjust to migration patterns and housing pressures, districts across the state are facing decisions that will shape classrooms and campuses for years to come.

California’s education budget may be balanced on paper, but important decisions are being pushed into the months ahead. As funding timing shifts and long-term revenue questions resurface, lawmakers and education leaders face growing pressure to chart a stable path forward. Meanwhile, a major statewide initiative is gaining early momentum, adding another layer to the fiscal conversation.

The Governor’s 2026-27 budget proposal appears balanced on paper, but a closer look reveals growing complexity beneath the surface. While near-term stability is emphasized, significant decisions are being deferred, leaving education leaders and policymakers facing uncertainty in the years ahead. Reserve strategies, revenue assumptions, and future obligations all play a role in shaping what comes next.

Education governance proposals, updated revenue signals, and new Senate leadership are beginning to define the policy environment for 2026. As the budget process moves forward, these early developments offer important context for what schools and stakeholders should be watching.

New state projections show steep declines in K–12 enrollment in many regions, alongside notable growth in several mid-central counties. As districts plan for shifting enrollment and facility needs, PACE has released new recommendations to redefine the role of the Superintendent of Public Instruction. This week’s update breaks down the trends and what they may mean for future governance.

California’s 2026 governor’s race is taking shape as new candidates emerge from both parties and others bow out, creating a competitive early landscape. At the same time, proponents are rushing to qualify 17 potential November 2026 initiatives, several with major implications for public education. The article outlines who’s running, which measures could have the greatest impact on public education, and when it will become clear which proposals are likely to make the ballot.