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Edsource: California schools could get billions more in Newsom’s final budget plan — with one catch

May 1, 2026—EdSource reporter John Fensterwald covers Governor Newsom’s May Revision and its mixed implications for California schools—including a higher COLA, a historic $2.4 billion special education increase, and a $5 billion discretionary block grant, offset by the governor’s continued withholding of $3.9 billion in Proposition 98 funds that school groups say belongs in classrooms now. Managing Attorney John Affeldt is quoted warning that the budget’s reliance on AI-driven tax revenues is not a stable foundation: “Our state cannot continue to rely on temporary AI stock market bubbles.” Affeldt calls for more robust, permanent revenue streams—and makes clear that the same teachers being asked to transform students’ lives are being priced out of the communities they serve.”

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Politico Pro: Newsom sticks with controversial funding deferral in mixed-bag schools budget

"It's not a crazy maneuver given the volatility of our revenue picture" — but restraints on how much can be withheld are still warranted, says PA Managing Attorney John Affeldt on Gov. Newsom's plan to defer $3.9 billion in constitutionally-protected school funding. Politico has the full story.

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LAIST: California voters greenlit billions of dollars to fix schools. How much has it helped? As schools age, the requests for modernization funding exceed the funding available.As schools age, the requests for modernization funding exceed the funding available.

"Our concern was that the low-wealth districts that are facing asbestos in every classroom, that are facing leaks, that are dealing with toxic mold — that they would have to wait another 10 years for any money to be distributed equitably." —Senior Staff Attorney Alicia Virani

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