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.

As California school districts brace for leaner budgets over the next two years, a deeper look at revenue volatility explains why. Declining personal income tax revenues—especially from capital gains—are dragging down the General Fund, which directly funds schools through Prop. 98. Meanwhile, employer pension costs are surging, putting even more pressure on local education budgets.

As California housing costs soar, even six-figure incomes now qualify as “low income” in areas like San Francisco. The state’s 2025 income limits reveal how affordability is slipping further out of reach—especially for educators and school families. This week we explore how unaffordable housing erodes school communities by driving enrollment declines, straining budgets, and complicating staff retention in high-cost regions.

As Governor Newsom’s May Revision forecasts a “growth recession,” slower economic growth and rising unemployment could lead to deeper General Fund shortfalls. What does this mean for Proposition 98 funding? And could billions in corporate tax credits have gone to schools instead?

A calculator displaying "PENSION," financial charts, and a magnifying glass highlighting "BUDGET STABILIZING ACCOUNT" over California State Assembly chamber.

California’s political and demographic landscape continues to evolve ahead of the 2026 election. Swing counties are shifting, population growth is modestly rebounding, and a new candidate has entered the race for Superintendent of Public Instruction. These developments may influence the balance of power in the Legislature and future projections for school enrollment and funding.

Despite a solid showing, April tax receipts came in just under the Governor’s March forecast, highlighting ongoing uncertainty as market declines threaten future capital gains revenue. Meanwhile, the 2026 gubernatorial race continues to expand, with more Republican candidates entering the field. This week’s article explores the implications for California’s fiscal stability and the evolving political landscape.