CSBA welcomes CTA to the fight to protect Proposition 98; CSBA set to file separate litigation against state for withholding $3.9B from public schools

CSBA welcomes CTA to the fight to protect Proposition 98; CSBA set to file separate litigation against state for withholding $3.9B from public schools<_sc3a_dot _xmlns3a_sc="http://www.sitecore.net/sc">

CTA lawsuit would complement CSBA's ongoing lawsuit against state for Prop 98 funding violations

Sacramento, CA (Sept. 15, 2026) - The California School Boards Association (CSBA) welcomes today's decision by the California Teachers Association (CTA) to sue the State of California for withholding $3.9 billion in Proposition 98 funding from California schools. On Sept. 23, 2024, CSBA's Education Legal Alliance sued the director of the Department of Finance and the State of California over their failure to comply with the State Constitution as represented in Prop 98, the voter-approved school funding law. The ongoing suit claims the Department of Finance and the state, throughout budget negotiations and culminating in an adopted budget deal, violated both the letter and the spirit of Prop 98. CTA's litigation will complement CSBA's existing lawsuit, as well as the new, independent litigation CSBA is filing on the withholding. CSBA's new lawsuit, expected to be filed on Sept. 22, will strengthen the case against the state for its repeated, unconstitutional violation of voter-approved laws governing school funding.

Prop 98 exists to provide a stable and predictable source of revenue for California's TK-14 public schools, yet the state has repeatedly adopted provisions that undermine the principle of Prop 98's minimum funding guarantee and opened the door to further and more extreme manipulation in the future. For the third time in as many years, the state budget includes a deeply concerning manipulation of Prop 98, the bedrock of public education funding for California's students.

On May 5, 2026, CSBA organized a coalition of statewide education leaders demanding restoration of what was then a $5.6 billion withholding and warning of negative impacts on student learning and school culture. The state failed to heed that call and ultimately adopted a budget indefinitely withholding $3.9 billion - equal to approximately $643 per student - from local schools, prompting legal action to hold the state accountable for meeting its constitutional obligations.

"We're pleased that CTA has joined the legal fight against the state's continual efforts to subvert Proposition 98, which was established by California voters to guarantee at least a minimum level of funding for public education and insulate our schools from wild swings in revenue that destabilize budgets and the student experience," said CSBA CEO & Executive Director Vernon M. Billy. "Prop 98 is not a credit card to be charged at the state's convenience, which is why CSBA will complement its existing litigation against the state for Prop 98 violations in the 2024-25 and 2025-26 budgets with a new lawsuit challenging the withholding of $3.9 billion in funds from the 2026-27 budget that should have been disbursed to school districts and county offices of education."

CSBA's existing lawsuit against the state and the new, independent lawsuit to be filed next week aim to reject different maneuvers with the same underlying effect: undermining Prop 98 and sidestepping voters' intent to provide a safety net for public schools.

"Attempts to normalize manipulations of Proposition 98 chip away at the security of our school funding model and diminish conditions for California students" said CSBA President Dr. Debra Schade. "Withheld funds result in reduced classroom supports, increased class sizes, fewer counselors, diminished mental health resources and diminished staffing - exactly what the public was trying to avoid when passing Prop 98. We trust the judiciary will see the unconstitutional nature of the state's actions and restore the funds that have been improperly taken from California's public schools."