K thru 12 Education
Proposition 98 Guarantee
A voter-approved constitutional amendment, Proposition 98, guarantees minimum funding levels for K-12 schools and community colleges. The guarantee, which went into effect in the 1988-89 fiscal year, determines funding levels according to a multitude of factors including the level of funding in 1986-87, General Fund revenues, per capita personal income and school attendance growth or decline.
Proposition 98 originally mandated funding at the greater of two calculations or Tests (Test 1 or Test 2). In 1990, Proposition 111 (SCA1) was adopted to allow for a third funding test in low revenue years. As a result, three calculations or tests determine funding for school districts and community colleges (K-14). The calculation or test that is used depends on how the economy and General Fund revenues grow from year to year.
For fiscal year 2006-07, Proposition 98 funding was $55.1 billion, of which the General Fund share was $41.4 billion. Local property taxes covered the balance. The 2007-08 Proposition 98 funding is estimated to increase to $55.7 billion. The General Fund share in 2007-08 is $40.7 billion which is $1.4 billion lower than the level of Proposition 98 General Fund appropriations included in the 2007 Budget Act. However, recognizing a reduction of that magnitude would be very difficult for schools to absorb mid-year, the Budget proposes to reduce the 2007-08 Proposition 98 appropriations by $400 million. This results in a Proposition 98 Guarantee of $56.7 billion in 2007-08.
The Proposition 98 Guarantee for 2008-09 is projected to grow to $59.7 billion of which $43.6 billion would be from the General Fund. However, as part of the budget-balancing reductions proposed by the Administration, Proposition 98 General Fund will be reduced to $39.6 billion. Thus, the Administration proposes to suspend the Proposition 98 Guarantee and provide $4 billion, or 9.2 percent, less than the Guarantee would have required in 2008-09.
The totals above include funding for K-12, community colleges and other state agencies that serve students. K-12 Proposition 98 per-pupil expenditures in the Governor's Budget are $8,458 in 2008-09, down from $8,558 in 2007-08.
CHAPTER HIGHLIGHTS for
K thru 12 Education Back to Top
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - K thru 12 Education (pdf * - 329K)
Provides this entire K thru 12 Education Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - K thru 12 Education
Displays Proposed Budget Detail information for K thru 12 Education.