Education groups from across the state met in Sacramento last week to urge state legislators to reject Governor Newsom’s revised budget proposal to temporarily hold $3.9 billion in education funding, which is equal to about $643 in cuts per student.

A coalition of school boards, administrators, teachers, parents, and other education officials gathered at the state Capitol Thursday to push back against Governor Gavin Newsom’s revised budget proposal to temporarily withhold $3.9 billion, as Bay Area News Group reports.

Educators argue that the proposal undermines the voter-approved funding protections established under Proposition 98, which guarantees a minimum share of the state’s general fund for K-12 schools and community colleges.

California Governor Gavin Newsom’s revised 2026-27 budget proposal follows earlier efforts to defer education funding, including $1.9 billion withheld last year that is reportedly set to be repaid this year. He was sued by the California School Boards Association when he proposed withholding $8.8 billion in 2024, per the News Group.

Education officials and labor groups have argued that delaying the funding violates the state constitution and creates uncertainty for districts already planning their budgets for the coming school year.

According to KQED, the proposed withholding overshadows some major education investments included in Newsom’s revised budget, including $2.4 billion in ongoing funding for special education and paid pregnancy leave for teachers. The budget proposal also adds $6.4 billion in discretionary funding for school districts compared to January projections, fueled in part by stronger-than-expected tax revenue tied to the AI industry.

Educators and union leaders said the additional investments are significant, but argued the proposed withholding of Proposition 98 funding still threatens school staffing and classroom resources as many districts continue grappling with budget deficits and layoffs.

Newsom has defended the proposal as a way to create a financial buffer amid uncertain state revenue forecasts, while education groups say delaying constitutionally guaranteed school funding shifts the burden onto local districts already struggling to maintain staffing levels and programs, per the News Group.

Education groups said withholding Proposition 98 funds could further strain school staffing, student services, and classroom programs at a time when districts are already facing financial instability and growing student needs.

As the News Group reports, state lawmakers have until mid-June to finalize the budget.

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