Today, the Legislature put into print SB 121 and AB 121 , identical K-12 education trailer bills implementing the bulk of the 2025-26 State Budget K-12 education. It also released AB 102 and SB 102 , known as the Budget Bill Jr, implementing broader changes to the budget bills passed by the Legislature before June 15. We are told these bills represent a deal between the Administration and the Legislature for the 2025-26 Budget Act which we expect to be voted on Friday. We want to make sure you have the highlights.

Most importantly, the budget deal retains the Governor’s proposal to fund a fully discretionary block grant at $1.7 billion for 2025-26, this is likely $300-$305 per ADA. That sound you heard was a collective sigh of relief from folks concerned the Legislature’s version of the Block Grant would pass – funded at only $500 million and included vague references to an LCFF/equity-based distribution model.

Budget Deal Highlights

• Funding Prop 98 at $120 billion in 2024-25, with an appropriation level of $118 billion. This creates a $1.9 billion “settle-up” amount in 2025-26, with language restricting those funds to on-going costs and deferral buy-down, to be appropriated during 2026-27 budget development, with more details expected in January 10 budget
• Funding Prop 98 at $114.6 billion in 2025-26
• $405 million from the Prop 98 Rainy Day fund in the 2025-26 School Year, fully exhausting the fund after 2025-26
• Creating June to July deferral of $1.9 billion (to be fully paid in 2026-27)
• Funding 2.3% COLA for LCFF and statutory categorical programs
• $378 million for the Learning Recovery Emergency Block Grant (LREBG)
• $300 for the newly established Student Teacher Stipend Program
• $200 million for the provision of literacy instruction professional development, as provided in AB 1454, the reading instruction bill
• $160 million for a School Meal Support Grant
• Commencing with the 2025-26 school year, implements the ELOP Tier 1 rate for all LEAs with 55% or more unduplicated pupils and increases the minimum base grant to $100,000
• Funding the TK staff add-on at $5,545 per TK ADA for shifting to a 10:1 student-to-adult ratio
• Appropriating $20 million for a California Youth Behavioral Health Initiative (CYBHI) Fee Schedule Bridge Program
• Ethnic Studies remains contingent upon an appropriation, with no funds appropriated from this purpose

These bills require votes by the Legislature before June 30 and will take effect immediately upon signature of the Governor.