Governor's Budget Workshop

By January 10, 2026, Governor Gavin Newsom will release his final budget proposal for fiscal year 2026-27, marking the end of his tenure as California’s chief executive officer. His final budget comes at a pivotal moment for the state, as the Governor confronts a host of challenges: an entrenched housing affordability crisis and a fragile economy shaped by volatile global trade relations. These policy pressures are compounded by a multi-billion dollar operating deficit built into the 2025-26 Enacted Budget—one that did not fully reflect the fiscal implications of federal policy shifts in subsidized medical and nutrition programs.

Amid these challenges, recent revenue trends offer a glimmer of optimism. California closed fiscal year 2024-25 with nearly $3 billion in unexpected revenue gains, despite the delayed tax filing deadline in Los Angeles County. Revenue collections for the current fiscal year are already modestly outperforming projections, buoyed by financial markets that continue to surprise analysts—resisting downward pressure from persistent inflation, a softening labor market, and ongoing tensions with major international trading partners.

So, what lies ahead for Proposition 98 and public education? One certainty is that the Governor will propose a reduction to the K-12 deferrals adopted in the 2025-26 Enacted Budget, leveraging the $1.9 billion Proposition 98 settle-up payment owed for not fully funding the 2024-25 minimum guarantee. Under current law, these settle-up funds must be used to pay down deferrals. Additionally, any new Proposition 98 dollars will likely be used to replace one-time funds used in the Enacted Budget to support ongoing Local Control Funding Formula (LCFF) costs. What remains uncertain is whether the Proposition 98 guarantee will increase enough to cover a statutory cost-of-living adjustment for the LCFF and other programs.

Governor Newsom’s final budget proposal is expected to preserve and protect the signature initiatives he has championed—those aimed at making sure California remains a leader in innovation, an economic powerhouse, an attractive, affordable destination for families and businesses to thrive.

The 2026-27 Governor’s Budget Workshop will deliver critical insights into the Governor’s final budget proposal, placing it within the broader economic landscape and state policy framework. The workshop will also provide detailed analysis of the key provisions affecting public schools, helping local educational agencies to begin planning their 2026-27 budgets and ensuring that the programs and services critical for student success are sustainable.

We look forward to seeing you in 2026!

Who Should Attend?

The Governor’s Budget Workshop is intended for California’s education leaders responsible for local policy and budget decisions, including board members, superintendents, superintendents’ cabinet members, chief financial officers, fiscal directors/budget officers, public affairs/legislative officers, negotiators and human resources staff, charter school officials, and others in educational leadership positions.

Cancellation Policy