Top Takeaways School districts are pressing Gov. Gavin Newsom to include $5.6 billion that he withheld from schools and community colleges in the initial January 2026-27 budget. Assembly and Senate leaders agree. The state has received much more revenue since January, partly due to increased AI investments, dramatically changing the funding picture. Districts say a priority should be a larger COLA (cost of living adjustment) to cover their rising operating costs. Look for three key numbers affecting TK-12 funding when Gov. Gavin Newsom releases a much-anticipated revision of 2026-27 state budget on Thursday, known as the “May revision.” One big, one small and one huge. $5.6 billion: In his initial January budget, Gov. Gavin Newsom said he planned to withhold $5.6 billion from TK-12 and community colleges, even though state revenue forecasts showed there would likely be enough to fund education in the 2026-27 budget. Newsom said he’d wait and see. Given the volatility in state tax receipts, he indicated he didn’t want to overpromise. Last week, school board members and teachers union leaders held press conferences and banged on legislators’ doors in Sacramento, demanding the money in the May revision. They said Proposition 98, which determines the portion of state revenues that must go to schools and community colleges, requires it. “We cannot allow budget maneuvers to undermine that promise when we need to concentrate resources in the service of improved student performance and closure of persistent achievement gaps,” said California School Boards Association President Debra Schade. “Diverting $5.6 billion…
