California’s top education associations and labor organizations across the state gathered in Sacramento last week to denounce a controversial plan by Gov. Gavin Newsom to suspend billions in state school funding.

The governor’s revised 2026-27 budget proposal calls for temporarily withholding $3.9 billion in constitutionally mandated, voter-approved education funding required under Proposition 98 — the 1988 ballot measure that sets aside roughly 40% of the state’s general fund for K-12 schools and community colleges. A previous version of Newsom’s plan, first revealed in January, would have temporarily withheld $5.6 billion in funding.

The governor has said the move will create a cushion for the state in a time of uncertain revenue projections, but educators have argued it will further exacerbate teacher shortages and threaten the quality of education in California, as districts across the state are already struggling with multimillion-dollar budget deficits and thousands of layoffs.

Leading education groups came together on Thursday on the west steps of the state Capitol to urge the Legislature to reject Newsom’s proposal and denounce the “unacceptable stripping of $3.9 billion from our public schools.”

Members of the Education Coalition — made up of school boards, administrators, teachers, classified employees, county superintendents, parents and school business officials — spoke out against the plan, which they said would reduce school funding by approximately $643 per student statewide.

Education groups in attendance included the California Teachers Association, the California School Boards Association, the Association of California School Administrators, the California County Superintendents, the California State Parent Teacher Association, the California Federation of Teachers, Service Employees International Union, the California School Employees Association and the California Association of School Business Officials.

“Withholding from Prop. 98 leaves local communities bearing the weight of the uncertainty when additional funding isn’t immediately available,” said Erika Jones, California Teachers Association secretary-treasurer and Los Angeles USD teacher. “That’s why voters passed Prop 98 — to guarantee those students get the level of education they deserve. As the fourth-largest economy in the world, California leadership should be striving to give students more than the bare minimum, let alone dipping into that minimum to cover budget shortfalls.”

Last month, in a first-of-its-kind coalition, leaders from San Jose, Fremont, Oakland, Antioch, West Contra Costa, San Ramon Valley, San Francisco and Napa school districts joined with Los Angeles school officials to sign a formal letter to California’s state elected leaders calling on lawmakers to reject the plan and address major funding issues facing public schools across the state.

This year, dozens of Bay Area school districts have announced layoffs, budget cuts or school closures in an effort to repair gaping budget deficits ranging from $6 million to over $100 million. Declining enrollment, rising costs and the expiration of one-time state and federal pandemic funds have all contributed to increased budget pressures for school districts.

The California Teachers Association also condemned the plan last month, arguing it comes as at least 2,400 educators throughout the state have been issued layoff notices. The union also warned that Bay Area school districts could lose more than $586 million in school funding under Newsom’s initial plan.

It’s the second time Newsom has attempted to defer school funding due to state budget shortfalls, after he withheld $1.9 billion last year. Initially, Newsom proposed withholding $8.8 billion in 2024, which prompted a lawsuit by the California School Boards Association.

“California voters passed Proposition 98 to make education funding less volatile and to provide a safety net for public schools in challenging fiscal times. … Prop 98 is a matter of law, not a suggestion that can be discarded when it becomes inconvenient for policymakers,” said Debra Schade, California School Boards Association president and Solana Beach School District trustee. “Once we open the door to the idea that Proposition 98 can be manipulated whenever the state faces fiscal pressure, we fundamentally weaken the protections voters deliberately put in place for California students.”

Education leaders warned that the proposal could jeopardize essential services and educational opportunities for students, as schools navigate rising costs, staffing shortages and increased student needs.

“Our educators and school leaders have spent the last several years managing through the pandemic recovery, staffing shortages, rising costs and the expiration of one-time state and federal dollars,” said Daryl Camp, Association of California School Administrators president and San Lorenzo Unified School District superintendent. “This has created instability and uncertainty in future budgets. Continuing to withhold Proposition 98 funding not only adds to that instability but forces districts to plan budgets without having the full picture. California students deserve a budget that fully invests in their success, their opportunities and their futures.”

The Education Coalition urged Newsom and the Legislature to reject any manipulation of Proposition 98 funding, restore withheld funds in full and honor the intent of California voters.

“Every dollar withheld has a consequence for our students,” said Tatia Davenport, CEO of the California Association of School Business Officials.

The state Legislature will have until mid-June to discuss Newsom’s revised budget before it must be finalized.

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