What We’re Watching in California Education: May 2025 Edition
Welcome to the May 2025 edition of What We’re Watching in California Education, a newsletter that we hope will offer you insight into public education conversations happening at our state Capitol.
Governor Newsom recently released the May Revision of the proposed 2025-26 state budget, with a stark fiscal shift: what was initially projected as a “modest” surplus in January has become a $12 billion shortfall. The administration attributed this change to broader economic uncertainty, including recent volatility in the stock market and concerns over international trade conditions. Despite this downturn, TK-12 education was largely protected from cuts and proposed cuts to higher education were softened.
Here are the toplines:
TK-12 Education: Funding levels remain stable, with continued investments in universal transitional kindergarten (TK), extended learning opportunities, and universal free school meals.
Literacy and English Learners: The May Revision maintains $543.3 million for literacy initiatives and adds $200 million for professional development in evidence-based instruction.
Higher Education: Proposed cuts to the UC and CSU systems were reduced from 8% to 3%. Financial aid programs such as Cal Grants and the Middle Class Scholarship saw increased funding, although investments in workforce development were scaled back.
TK-12 Education: Protected Investments Despite Fiscal Constraints
Total TK-12 funding remains relatively steady in the May Revision at $137.8 billion, or $25,176 per pupil, despite budgetary challenges. The Cost of Living Adjustment (COLA) for the Local Control Funding Formula (LCFF) was slightly reduced, from 2.43% to 2.3%.
Key investments proposed in January remain intact:
- $3.1 billion to fully implement universal TK and reduce the student/adult ratio to 10:1.
- Continued funding for universal free school meals.
- Ongoing expansion of the Extended Learning Opportunities Program (ELOP).
- While funding for teacher recruitment and retention was reduced, the May Revision preserves $64.2 million for the Golden State Teacher Grant Program and $100 million for student teacher stipends helping to keep new educators in the pipeline.
Literacy and English Learner (EL) Supports
The May Revision includes substantial investments aimed at improving literacy outcomes:
- Maintains $543.3 million from the January proposal for literacy initiatives, including instructional materials adoption, the rollout of the Reading Difficulties Risk Screener, and expansion of literacy and math coaches.
- Adds $200 million for professional learning in evidence-based literacy instruction, which is aligned with Assembly Bill 1454, legislation supported by GO.
These investments have the potential to significantly enhance literacy outcomes across the state by expanding access to evidence-based training and resources.
For supporting English learners (EL), the budget includes:
- $10 million to support TK students to use a new multilingual screening instrument.
- $7.5 million to offset LCFF reductions that resulted from exempting TK students from initial ELPAC testing.
- $2 million to bolster regional EL lead agencies.
- $348,000 to support implementation of the EL Roadmap.
We applaud the administration’s commitment to TK-12 education in the face of budgetary challenges. Ongoing investments to improve literacy and support student success are essential to addressing educational inequities.
Higher Education Funding- Reduced Cuts, But Challenges Remain
The May Revision lessens the severity of proposed cuts to higher education, scaling back initial plans for 7.95% in reductions to 3%. These 3% reductions translate to:
- University of California (UC): $130 million cut;
- California State University (CSU): $144 million cut.
These adjustments were welcomed by higher education leaders, although broader financial concerns remain, particularly around reductions in federal support.
Other key higher education adjustments in the May Revision include:
- Preserving most funding for California’s Community Colleges, with a 2.3% cost-of-living adjustment (COLA), though there were some downward adjustments related to shifting how Proposition 98 funds are split between K-12 and Community Colleges in light of TK expansion.
- Cal Grants and the Middle Class Scholarship received increased funding to match rising student eligibility.
- Reductions in proposed funding for implementing the new Master Plan for Career Education, including the Career Passport program and the Credit for Prior Learning proposal, and the withdrawal of the $5 million in proposed funding for coordinating statewide education and workforce systems
We appreciate the Governor’s effort to shield students from the harshest impacts of the state’s fiscal challenges. For low-income, first-generation, and mixed-status students, these budgetary choices will shape whether college is a possibility or out of reach. Protecting financial aid and reducing cuts to public higher education are critical steps forward, but this must be the floor, not the ceiling, of California’s commitment to opportunity and student success.
What’s Next?
With the Legislature now racing toward the June 15 constitutional deadline to pass a balanced budget, negotiations will intensify in the weeks ahead. While education has been relatively protected in this proposal, the shifting fiscal landscape means nothing is guaranteed until the final budget is signed. GO will continue to track developments to ensure that funding decisions support the needs of all students, especially those from historically underserved communities.
For additional information on the Governor’s May Revision, check out these statements and analyses from our partners and colleagues:
- California Budget and Policy Center: First Look: Understanding the Governor’s 2025-26 May Revision
- California Competes: May Revise Response
- California EDGE Coalition: 2025-26 May Revision Highlights
- Californians Together: Governor’s May Budget Revision Highlights Key Investments in Literacy and English Learners
- Public Advocates: Public Advocates Responds to Governor’s May Revision
- TICAS: Revised California Budget Navigates the Deficit and Minimizes Harm to College Students and Institutions
Additionally, for resources regarding school finance and budgetary issues, check out GO’s growing School Finance Resource Library, designed to help families navigate the complicated world of school governance and finance.
In Community,
Darcel Sanders, Chief Executive Officer
