Teachers union sues over $3.9B in delayed school money

California's biggest teachers union says the state broke its own constitution by pushing $3.9 billion in school funding down the road.

Sep 15, 2026

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Teachers union sues over $3.9B in delayed school money

California's biggest teachers union says the state broke its own constitution by pushing $3.9 billion in school funding down the road.

In brief

California's biggest teachers union says the state broke its own constitution by pushing $3.9 billion in school funding down the road. The fight is over timing, not size: the state says deferring Prop. 98 money is prudent under shaky revenue forecasts, the union says the constitution does not allow the delay…

Union takes the state to court

People march in support of the United Teachers Los Angeles (UTLA) during the Los Angeles-Long Beach Harbor Labor Coalition 46th Annual Solidarity Parade and Pic

The California Teachers Association sued on Tuesday, saying Gov. Gavin Newsom and lawmakers left at least $3.9 billion for public schools and community colleges out of this year's budget.

What Prop. 98 promises

Aerial view of the California State Capitol building.

A 1988 ballot measure wrote a minimum annual education funding level into the state constitution. The union argues deferring that money is not a delay, it is a violation.

Two years of deferrals

Revised budgets pushed Prop. 98 payments for both 2024-25 and 2025-26. The Department of Finance called that necessary given volatile revenues and analysts' warnings of $20 billion to $30 billion yearly deficits.

“due to persistent uncertainty in revenue projections”

Districts are already cutting

A large crowd of people, many holding umbrellas and signs, march in the rain, with a California state flag in the foreground.

Los Angeles Unified voted to cut jobs this year amid a shortfall. San Juan Unified could lose as much as $3.7 million as enrollment drops and costs rise.

“their future is in jeopardy with threats to withhold vital funds”

A gray area in the law

State law bars cutting school funding before a fiscal year closes, so overestimating Prop. 98 could force cuts elsewhere. Whether the governor can wait for final numbers is unsettled.

“Does the governor have the flexibility to wait and see what the final number is”

Sacramento points at Washington

Newsom and fellow Democrats blame Trump's cuts and tariffs for scrambling revenue forecasts. Finance says one-time money should never have been bankrolling multi-year salary contracts.

“that's not what many fiscal experts would consider to be a prudent budgeting practice”

In short

The fight is over timing, not size: the state says deferring Prop. 98 money is prudent under shaky revenue forecasts, the union says the constitution does not allow the delay.

Read the original on California Post

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