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Politico Pro: Newsom sticks with controversial funding deferral in mixed-bag schools budget
May 14, 2026—Politico’s Eric He reports on Gov. Newsom’s May Revise budget proposal, which calls for deferring $3.9 billion in Proposition 98 school funding despite revenues coming in $16.5 billion above projections. The move has drawn swift condemnation from teachers unions, school boards, and Democratic lawmakers who argue the constitutionally-guaranteed funding is urgently needed — including by Los Angeles Unified, which is counting on state dollars to honor $1.2 billion in new union contracts. On the positive side for education advocates, the governor preserved $1 billion for community schools expansion. Public Advocates Managing Attorney John Affeldt weighed in on the deferral, saying that while restraints are warranted, it’s “not a crazy maneuver given the volatility of our revenue picture.”