How Gov. Newsom's proposed budget would affect California education

SACRAMENTO, Calif. - After two years of deficits, California Gov. Gavin Newsom says the state will see a "modest" surplus in 2025. He previewed a $322.2 billion proposed budget this week, emphasizing no cuts to basic programs or tax increases, while stakeholders begin responding to the plan.

State tax revenues are up $16.5 billion, bolstered by investments and stock market gains. The budget also taps into $17 billion in reserves.

In education, popular programs like free school meals, before-and-after-school care, and summer school will remain intact. The budget fully funds universal transitional kindergarten, offering free education to approximately 400,000 four-year-olds statewide.

"TK offers a way to get 4-year-olds back in the classroom, with basic academic skills," said Morgan Polikoff, a professor at USC’s Rossier School of Education. "There is pretty good evidence it can help kids succeed in kindergarten."

However, Newsom expressed caution about potential challenges ahead.

"We’re walking into headwinds, a radically different moment in U.S. and world history," Newsom said. He pointed to possible cuts in federal funding under the incoming Trump administration as a major uncertainty.

Federal sources account for one-third of California’s budget, with $2,700 per student coming from Washington. Representatives of the Trump administration have floated eliminating the U.S. Department of Education, a move that could significantly affect California.

"Education is very popular, and those kinds of cuts would hit California and red states alike," Polikoff said.

KTVU political analyst Brian Sobel expressed skepticism. 

"Eliminating the Department of Education... I don’t see that happening very easily, if at all," he said.

Newsom will formally present the budget to the legislature on Friday, with lawmakers and the governor facing a June deadline to finalize details.