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Senate subcommittee: May Revision cuts Prop. 98 guarantee by roughly $4.6 billion, rebenches for TK, provides limited fire-related backfill
Summary
At a May 2025 hearing, Department of Finance and the Legislative Analyst's Office outlined a lower Proposition 98 guarantee, rebenching for universal transitional kindergarten and a one-time property-tax backfill for fire-impacted districts, while flagging risks from one-time solutions and deferrals.
The California State Senate Budget Subcommittee No. 1 on Education heard a presentation Thursday that the May Revision projects a lower Proposition 98 minimum guarantee for K–14 education and proposes targeted adjustments for universal transitional kindergarten and fire-related property-tax losses.
"The May Revision forecast that the Proposition 98 guarantee amount for 2025–26 will be $114,600,000,000, which is $4,300,000,000 less than what was forecast at the governor's budget," Alex Schop, Department of Finance, told the subcommittee. Finance also described a roughly $4.6 billion reduction across the three-year window compared with the governor's budget.
Why it matters: Proposition 98 determines the minimum state funding level for K–12 schools and community colleges. A multibillion-dollar downward revision affects ongoing program funding, one-time spending decisions, and the state's use of deferrals and reserves.
The Department of Finance described two technical "rebenches" in the May Revision. One adjusts the guarantee upward to reflect the…
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