Senate approves SCA 5 to create Equalization Reserve Account for school funding disparities

The Senate moved forward on Senate Constitutional Amendment 5, the Education Equalization Act, which would establish an Equalization Reserve Account designed to narrow long‑running per‑pupil funding disparities among California school districts.

Senator Cortese, the author, said SCA 5 would create an endowment‑style reserve funded with one‑time general fund dollars in strong budget years and would not redirect existing Prop 98 funding or change the Local Control Funding Formula. "SCA 5 addresses a funding disparity that has persisted and grown for more than 40 years," Cortese said, noting the aggregate gap is in the billions of dollars and the proposal aims to target the lowest‑funded districts.

Senator Jones asked whether the measure was being amended on the floor or later; Cortese said the plan is to take technical amendments when it reaches the Assembly and that the item is targeted for the 2028 general election ballot. The author emphasized that the funding mechanism is intended to supplement existing guarantees, not diminish them.

The Senate approved the measure to proceed (roll call recorded in the transcript). The passage on the floor advances SCA 5 to the next stage; because it proposes a constitutional amendment it will later appear before voters if it completes the legislative process. Implementation details, formulas, and precise funding triggers were described as subject to forthcoming amendments.

What happens next: SCA 5 will be amended and moved through the Assembly; any final constitutional amendment would require voter approval on a future ballot (the author indicated a 2028 target).