Use the chart below to track how the California State Budget has changed between the 2024 enacted state budget, the Governor's 2025-26 Proposed Budget, and the 2025-26 May Revision.

On May 14, Governor Newsom released an updated state budget proposal. Read the Network's Full Response here. Despite a reported $12 billion deficit, the state largely maintains funding for early education and child care programs. See below for a top-line overview of the Governor's 2025-26 May Revision budget.

• Total Budget: $321.9 Billion
• General Fund: $226.4 Billion
• Total Reserves: $15.7 Billion
• Budget Shortfall: $11.9 Billion (or 5.8% of the overall budget)

Department of Social Services (Child Care and Development)

• Maintains 2024 level funding to continue the “Cost of Care Plus” monthly payment for state subsidized providers.
• Adds $44.8 million in General Funding (GF) to prepare the state to implement Monthly Cost of Care Plus Rates.
• Includes $21.7 million to support the automation of Rate Reform and $70 million to Alternative Payment Programs for additional admin support. While there is no additional funding proposed to increase provider reimbursement rates, the Governor’s Budget Summary states there is a continued commitment to work towards a single rate structure and alternative methodology for estimating the cost of care.
• Adds approximately $52 million to prospectively pay providers (equivalent to private market where parents pay in advance for services delivered rather than retroactively bill for services rendered).
• Suspends Cost of Living Allowances (COLA) for early childhood contractors beginning 2025-26 (including contracts for R&R, LPC, CCTR, CFCC, CMIG, CMAP, CHAN, and CSPP) to generate $60.7 million in savings to the GF.
• Decreases the Emergency Child Care Bridge for Foster Care Children program to $42.7 million in 2025-26 reflecting current level spending and maintains $51 million in annual ongoing funding for the program.

Proposition 98 Funding and Transitional Kindergarten (TK)

• Provides $2.1 billion in ongoing Prop 98 GF (inclusive of all prior years’ investments) to support the full implementation of Universal Transitional Kindergarten.
• Provides an additional $1.2 billion ongoing Prop 98 GF to support lowering the average student to adult ratio from 12:1 to 10:1 in every TK classroom.

Before, After, and Summer School

• Maintains full implementation of the Expanded Learning Opportunities fund (for students in grades TK-6) and estimates its ongoing cost at $515.5 million to increase the number of small Local Education Agency (LEAs).
• Adds an additional $10 million to increase the minimum grant amount from $50,000-$100,000 per LEA.