California’s new congressional districts are already triggering political clashes, including a likely showdown between two Republican incumbents, and fueling speculation about who will jump next. Additionally, the race for Superintendent of Public Instruction is getting crowded, with education committee chairs and former legislative leaders now in the mix.

California’s schools face funding pressures on two fronts. Public Advocates’ new lawsuit argues the state’s School Facilities Program favors property-rich districts, while a prolonged federal shutdown delays grants and disrupts key programs. Together, these developments highlight widening gaps between districts with resources and those without.

The Legislative Analyst’s Office is urging California to tread carefully as slowing revenues and shrinking reserves raise new fiscal concerns. Yet, recent state finance data reveal surprising economic strength, placing leaders at a crossroads between restraint and growth. What are the LAO’s recommendations, and what do California’s latest revenue trends mean for schools and local agencies?