What do the latest income tax figures mean for school funding this year? And as the 2026 race for governor gains momentum, which familiar names are stepping into the spotlight—and why does it matter for education? This week’s update unpacks the fiscal outlook and highlights key contenders in California’s growing gubernatorial field.

As school districts begin to spend recent bond funds, rising interest rates and tariffs are quietly reducing their purchasing power—jeopardizing planned construction. Meanwhile, the state’s updated tax revenue data reveals a $3.6 billion shortfall from budget projections. This week’s update examines how these financial pressures may shape district planning and influence the Governor’s May Revision.

A prominent national figure has entered California’s 2026 gubernatorial race, reshaping early campaign dynamics. At the same time, new federal tariffs raise the prospect of reduced state revenue—threatening key education funding streams. This week’s briefing examines the political and fiscal developments poised to impact long-term policy and budget decisions across the state.

Meet two California gubernatorial candidates and insights on initiatives placed on the ballot so far

California Cash Flow Above Forecast While Trump orders to eliminate the United States Department of Education.

CalSTRS 2024 returns strong, but trade wars can threaten future gains.

CalSTRS benefit recipients boost California economy amid Trump's tariffs.

Corporate Tax Credits Impact Education Funding, Newsom’s Workforce Investment, and Federal Medicaid Cuts impact California school districts

Schools subsidize corporate tax credits, Transparency around AI's energy cost, and declared SPI election candidates.

How will steel & aluminum tariffs, and Rainy Day Fund changes impact schools? What are the LAO recommendations to ease the fiscal shortfall?