Governor's Budget Workshop

As California’s next governor prepares to succeed Governor Gavin Newsom, the state he will inherit remains a global economic competitor facing obstinate challenges within its borders that will need to be addressed in the coming years to ensure it maintains its vibrancy and a place where Californians can thrive. Some of the challenges preceded Governor Newsom’s tenure while others emerged under his leadership.

The state maintains its stature and prominence in the global marketplace as the fourth largest economy in the world. California gross domestic product (GDP) increased by nearly 50% over Governor Newsom’s time in office, totaling $4.4 trillion. The state alone comprises 14% of the national GDP as a leader in high-tech manufacturing, artificial intelligence (AI) and technology, and home to three of the ten largest commercial ports in the U.S. This distinction, while making the state an international powerhouse it its own right, also makes it more susceptible to conditions beyond its borders. The continuation of the conflicts in Iran and Eastern Europe pose the same risks to California as they do to the U.S., particularly economic risks. The choking of major shipping arteries resulting from these conflicts threaten sustained inflationary pressures across a broad range of goods and services. Higher costs could force governments, businesses, and consumers to curb spending, putting a drag on an economy whose current health is already over-reliant on the prosperity of a handful of AI companies.

While the state has enjoyed prosperity even amid historic events that tested its resilience, California’s next governor will need to make some difficult decisions. Over the last eight years, state General Fund spending has increased by 70%. Some of that growth can be absorbed by higher revenues coming into state coffers, but many worry that surging resources are temporary and are bound to plateau as the AI bubble deflates or bursts. The Legislative Analyst’s Office warns of the risks of overspending and measures California’s new wall of debt at nearly $30 billion, compared to $4.5 billion at the start of Governor Newsom’s first term in office—an unsustainable structural trend that could be exacerbated if California voters reject Proposition 3, which seeks to make permanent the personal income tax on high-earners.

While these things seem only marginally related to public education, they pose many risks for school funding and finance policy. First, we could see a real reduction in revenues that would directly impact available resources for education programs and services. Second, as we have experienced too many times in history, budget makers who feel unduly constrained find creative ways to use Proposition 98 as one of the most potent budget tools. How the next Governor will approach these challenges remains to be seen, and we will get our first glimpse with the release of his 2027-28 Governor’s Budget in early January 2027.

The School Services of California Inc. 2027-28 Governor’s Budget Workshop will deliver critical insights into the Governor’s first 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 2027-28 budgets and ensuring that the programs and services critical for student success are sustainable.

We look forward to seeing you in 2027!

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