Senate subcommittee flags $4.6 billion May Revision hit to Proposition 98, questions deferrals and LA fire backfill

The Senate Budget Subcommittee No. 1 on Education on May Revision heard an overview of the May Revision’s Proposition 98 calculations and follow‑on debate about budget architecture, one‑time funding and how wildfire property‑tax losses are being addressed.

The panel opened with Alex Schop, Department of Finance, who summarized the administration’s May Revision: “The May revision forecast that the Proposition 98 guarantee amount for ’25‑26 will be $114.6 billion, which is $4.3 billion less than what was forecast at the governor’s budget.” Legislative Analyst Office staff quantified the three‑year impact: Ken Kappan told the subcommittee that the May Revision “shows a total decrease of about $4.6 billion compared to the governor’s budget” across the 2024–25 and 2025–26 years.

Why it matters: Proposition 98 is the constitutional minimum guarantee for K–14 funding in California. Changes to that guarantee affect the Local Control Funding Formula (LCFF), categorical programs, community colleges and the state’s ability to sustain newly created or expanded programs such as universal transitional kindergarten (TK).

Major numbers and mechanics

- May Revision guarantee for 2025–26: $114.6 billion (administration estimate). - Three‑year reduction compared with the governor’s budget: about $4.6 billion (LAO figure). - Maintenance factor: revised up slightly to about…