Why It Matters
The lawsuit challenges whether state leaders can withhold constitutionally mandated education funding to address broader fiscal shortfalls.
What Happened
The California Teachers Association filed a lawsuit this week demanding the state release $3.9 billion in public school support funds. Governor Gavin Newsom and the Legislature withheld the money in the budget enacted in June, citing the need to close a multibillion-dollar deficit.
The suit targets funds required under Proposition 98, a constitutional mandate passed by voters in 1988 that makes the state budget the primary source of operational funds for public schools. CTA President David Goldberg said the legal action seeks to enforce the proposition and recover the withheld money.
“We are filing a lawsuit to demand the protection of Prop 98,” Goldberg said.
The complaint also addresses $1.9 billion in school aid withheld from the previous year’s budget, which the state repaid a year later. Governors and legislators have periodically used indirect borrowing from Proposition 98 to close revenue-spending gaps.
By the Numbers
$3.9 billion — Amount of public school support withheld in the June budget
$1.9 billion — Withheld school aid from the previous year’s budget
$125 billion — Total state deficits over the past four years prior to this year’s budget
1988 — Year voters passed Proposition 98
Zoom Out
Legislature budget analyst Gabe Petek noted that the state has faced deficits totaling $125 billion over the four years preceding this year’s budget. Many school districts are experiencing financial distress due to rising costs, particularly salaries, and declining enrollment. State aid for local districts is determined largely by attendance figures.
What’s Next
The courts will determine whether the state’s withholding of Proposition 98 funds violates the constitutional mandate established in 1988.