California’s 2026 gubernatorial candidates are largely quiet on K–12 education, despite growing challenges. While Tony Thurmond emphasizes funding equity, Steve Hilton pushes for phonics and accountability. Meanwhile, CalSTRS has released 2025 audit findings, revealing errors that could affect school district budgets and retiree benefits. Read more on what candidates aren’t saying—and what CalSTRS has uncovered.

On July 1, the federal government withheld $6.8 billion in K–12 education funding—costing California $811 million. At the same time, state lawmakers approved a $750 million film tax credit projected to divert $300 million from schools under Proposition 98. While the Department of Finance reports higher-than-expected tax revenues, these short-term gains are overshadowed by mounting threats to public education from both Washington and Sacramento.

California’s education funding faces a dual threat: new initiatives from the Howard Jarvis Taxpayers Association seek to raise the threshold for local taxes—potentially gutting school parcel taxes and bonds—while the temporary high-income tax surcharges under Props 30 and 55 are set to expire in 2030. Both developments could dramatically reshape school finance, making the next few election cycles critical for districts.

Kamala Harris has filed the Statement of Intent to run for California Governor with the State Secretary, adding star power to a growing field of 65 candidates. Meanwhile, the Legislature is weighing major changes to the state’s Rainy Day Fund that could impact school funding, and the Governor faces a June 27 deadline to sign a budget still in flux. With economic uncertainty and political tensions rising, districts must brace for late-breaking fiscal shifts.