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\n\t\tThis story was originally published by EdSource<\/a>. Sign up for their daily newsletter<\/a>.<\/p>\n
Gov. Gavin Newsom\u2019s May budget revision takes a significant step toward addressing California\u2019s long-underfunded special education system. Building on his January proposal to equalize base funding rates between regions, Newsom added $1.8 billion to the $509 million he had already proposed, bringing the total proposed increase to $2.4 billion, 43% more than the prior year.<\/p>\n
$2.4billion<\/p>\n
the largest special education funding in California\u2019s history, proposed in the governor\u2019s 2026-27 May revision, a 43% increase over prior funding.<\/p>\n
$341<\/p>\n
the extra amount that school districts will receive in per-student funding \u2014 for all students \u2014 because of the boost from the proposed special education base rate under the governor\u2019s budget, raising the statewide per-student funding from $999 to $1,340.<\/p>\n
In the past decade, overall TK-12 enrollment in California has declined by 8%, while the number of students receiving special education services has grown nearly 20%. Educators and researchers point to several drivers for the increase of students who qualify for special education services: better identification of developmental delays and disabilities in early childhood, growing disability advocacy that has reduced stigma and pandemic disruptions that delayed early interventions.<\/p>\n
15.4%<\/p>\n
the share of California students qualifying for special education in 2025\u201326. As California\u2019s TK-12 enrollment has declined by 8% over the past decade, the number of special education students has grown by nearly 20%.<\/p>\n
Declining enrollment squeezes revenue for districts across all funding sources. At the same time, rising special education enrollment drives costs higher. Federal, state and local funding dedicated to special education together covered less than 40% of the costs over the past couple of years, leaving districts to draw on general funds and other unrestricted sources to pay for special education services.<\/p>\n
62.8%<\/p>\n
the share of special education costs that California districts covered with their own general funds or other unrestricted revenues in 2024-25.<\/p>\n
Related Reading<\/p>\n
Why California education leaders are relieved and frustrated by Newsom\u2019s budget<\/a><\/p>\n May 14, 2026<\/p>\n How the governor\u2019s budget proposal addresses rising numbers of students in special education<\/a><\/p>\n February 4, 2026<\/p>\n Special education has become a flash point in negotiations with teachers<\/a><\/p>\n February 24, 2026<\/p>\n EdSource is dedicated to covering in California and nationally. Other publications may republish EdSource articles, online or in print, at no charge, provided adherence to our guidelines. The embed code provided here includes a tracking pixel to enable us to measure the reach of our stories. It must be included in any online pickup of EdSource stories.<\/p>\n The following guidelines apply to all EdSource content, including stories, podcasts and video:<\/p>\n