California’s political and economic landscape is shifting. With Kamala Harris out of the 2026 governor’s race, billionaire Rick Caruso is weighing whether to jump in. Lt. Gov. Eleni Kounalakis is changing course, and Gov. Newsom may push for a special November election on redistricting. Meanwhile, new tariffs are taking a steep toll on California’s economy, with potential ripple effects on jobs, budgets, and schools.

Kamala Harris exits the 2026 governor’s race. CalSTRS reports strong growth in the state’s teacher pension fund. And long-halted federal education funds are confirmed to flow to California.

California’s revenues remain above forecast, with personal and corporate tax receipts boosting reserves that may cushion future shortfalls. Meanwhile, former Assembly Speaker Anthony Rendon has entered the 2026 race for Superintendent of Public Instruction, joining a crowded field of 15 candidates who bring diverse education priorities to the statewide contest.

California’s 2026 gubernatorial race is already crowded, with 66 declared candidates vying for attention. Among them, Democrats Eleni Kounalakis, Antonio Villaraigosa, and Katie Porter are beginning to distinguish themselves. Meanwhile, CalPERS reports a robust 11.6% return—bringing its funded status closer to 80% as it rebounds from years of volatility.

Global tariffs may soon hit California’s classrooms. With $11B in added costs and a projected $12B state deficit, schools face delayed payments, rising construction costs, and more. The Teachers' Retirement Board is already sounding the alarm. Read how shrinking revenues and economic policy shifts could leave districts struggling to fund staff, facilities, and programs.

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.

California’s population is finally climbing again after pandemic declines—adding over 230,000 people in just one year. What does this mean for schools bracing for enrollment drops? This article breaks down the state’s demographic shifts and how a growing field of candidates for State Superintendent and Governor may shape education’s future.