PROP 98 SCHOOL FUNDING GUARANTEE IS UNDER ATTACK BY SPECIAL INTERESTS

Past carve-outs already shortchange California public schools billions

Report shows a new special interest proposal would cost schools $3+ Billion more every year

Get the Facts

Special Interest Carve-outs Are Costing Our Kids

California voters approved Prop 98 to guarantee schools get their fair share of revenue.  Under Prop 98, schools get roughly half of any new revenue, helping to support teachers and ensure students access to a quality education.

But special interest groups have repeatedly created carve-outs to bypass these protections, diverting billions away from California classrooms – more than $11.8 billion in Prop 98 funding in 2026-7 alone according to a new report. 

A New Threat to Prop 98

Now schools face another threat from the proposed “Wealth Tax” initiative, according to a recent  report by a leading California education economist.  The measure’s proponents say it will raise billions in new revenue – but blatantly carve out all the funds from Prop 98, so schools aren’t guaranteed to receive one penny. 

Even worse, analyses by the LAO and economists at Stanford have found the measure won’t raise anywhere close to what it claims and will actually COST California’s general fund revenue for decades.  So schools not only don’t get their fair share of the new revenue – they will lose funding as existing revenue drops.

The measure specifically prohibits 90% of the new revenue from going to schools.

The chart below shows the devastating impact to school funding from the “Wealth Tax” initiative if the Legislature decides to give 5% of the remaining revenue to schools.

K-14 Funding Change and Amount  Diverted 

2026-27 

2027-28 

2028-29 

2029-30 

2030-31

Total

As Proposed 

$0.1 

-$0.8 

-$0.9 

-$1.1 

-$1.2 

-$3.9

If Subject to Prop 98 

$3.2 

$2.8 

$2.5 

$2.3 

$2.0 

$12.8

Amount Diverted 

$3.1 

$3.6 

$3.5 

$3.3 

$3.2 

$16.7

2026-27 
As Proposed $0.1
If Subject to Prop 98 $3.2
Amount Diverted $3.1
2027-28 
As Proposed -$0.8
If Subject to Prop 98 $2.8
Amount Diverted $3.6
2028-29 
As Proposed -$0.9
If Subject to Prop 98 $2.5
Amount Diverted $3.5
2029-30 
As Proposed -$1.1
If Subject to Prop 98 $2.3
Amount Diverted $3.3
2030-31 
As Proposed -$1.2
If Subject to Prop 98 $2.0
Amount Diverted $3.2
Total
As Proposed -$3.9
If Subject to Prop 98 $12.80
Amount Diverted $16.70

Stop the Special Interest Carve-Outs.
Protect Prop 98.
Protect Our Priorities.

The Protect Schools and Taxpayers Act ensures that all future taxes must follow voter-approved Prop 98 protections for school funding. This is not a new tax – simply a requirement that any new proposed taxes follow the existing rules approved by voters.

Upon passage, any new state revenue must comply with Proposition 98. If it doesn’t, it can’t be collected.

No exceptions. No carve-outs. No special deals.

  • Schools get their guaranteed share
  • Special interests can't game the system

Simple. Fair. Voter-Approved.

Get the Facts

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