Governor's Budget Workshop

In January, Governor Gavin Newsom will release his 2025-26 State Budget, which—as his penultimate proposal as the state’s chief executive officer—will likely include proposals designed to help cement his legacy as California’s 40th governor, including landmark policies such as universal transitional kindergarten that created the largest universal preschool program in the nation. Following a tumultuous and difficult negotiation with the California Legislature and other key parties to close a $55 billion budget shortfall in 2024-25, better-than-expected state revenues will be a welcome change but do not guarantee that ensuing discussions will be without controversy.

The condition of the state General Fund has improved significantly over the past year; however, the solutions used to address last year’s deficit included significant one-time reductions and cost shifts that will need to be addressed in the 2025-26 State Budget, as benefactors of government-funded programs and services will expect some level or restoration. While there is hope that revenues will continue to beat projections and provide some relief, the state’s decision to suspend Proposition 98 as part of the 2024-25 Enacted Budget will complicate the budget as new revenues will likely be required to be used to pay off the state’s debt (or maintenance factor) to K-14 education.

Gratefully, the economy is showing modest signs of improvement with the taming of inflation and continued economic growth. The question remains how the cost of housing and the uptick in unemployment will create headwinds for the U.S. and for California, in particular. The Governor’s Budget will have to balance fiscal prudence against ambitions to address climate change, to prepare the workforce for an evolving high-tech economy, and the needs of increasing numbers of residents for whom California is simply becoming unaffordable. Moreover, the political fervor of the upcoming presidential election permeates the state’s borders, as one of California’s very own aspires to hold the nation’s top seat. How might the election outcome shift federal policies―fiscal or otherwise―in ways that impact us locally? The Governor’s Budget will have to account not just for the spending needs of the state today, but also prepare it for the years ahead so that California maintains its position as a global economic and sociopolitical leader.

The release of the Governor’s Budget proposal initiates the six-month negotiation between Governor Newsom and the California State Legislature. With K-14 public education comprising over 40% of the budget, and a likely larger share in 2025-26, Governor Newsom’s proposal will provide critical insight and information for the development of school and community college agency budgets. This includes key planning factors for local budget development as well as human resources and program planning considerations. An overview of the Governor’s education priorities and an explanation of the underlying details of the proposed Governor’s Budget will once again be presented at the School Services of California Inc.’s (SSC) Governor’s Budget Workshop.

As always, the workshop will focus on the economic context of the Governor’s Budget proposal, his major funding and policy proposals, and key details that will help local educational agencies (LEAs) project their revenues for 2025-26 and the remainder of 2024-25. The workshop will also offer SSC’s insights and advice on what LEAs should do now to prepare for the upcoming year. Attendees will be able to submit questions during the in-person workshops to be answered at the end of each event or through subsequent Fiscal Report articles. We look forward to joining you on this important journey.

Who Should Attend?

The Governor’s Budget Workshop is intended for California’s education leaders responsible for local policy and budget decisions, including board members, superintendents, superintendents’ cabinet members, chief financial officers, fiscal directors/budget officers, public affairs/legislative officers, negotiators and human resources staff, charter school officials, and others in educational leadership positions.

Cancellation Policy