February was an eventful month in the Capitol.  We learned additional details about the 2026-27 State Budget when the Trailer Bill language was released on February 2, 2026. Details of key sections are below, followed by a section-by-section quick reference chart.

With the full budget picture available, CASBO’s Legislative Committee was able to take positions on Governor Newsom’s proposed 2026-27 Budget and communicated those positions with both the Governor and the Legislature. A summary of those positions is below, and the letter is attached.

The final milestone of the month was the bill introduction deadline on February 20, 2026.  Below is a summary of the number of measures the legislature will consider between now and August 31, 2026, plus information on CASBO’s co-sponsored bills.

2026-27 TK-12 Omnibus Trailer Bill

The proposed TK-12 Omnibus trailer bill language was released by the Department of Finance on Monday, February 2, 2026. It provides key details on the Governor’s budget proposal and will be negotiated with the legislature through the budget process this spring.

Below is a summary of selected sections followed by a chart listing the topic of each section of the trailer bill language.

Section 2: Oversight of Single-District Counties and Section and 3: CDE View-Only Access to Select LEA Financial Systems

Would provide additional oversight and fiscal safeguards specific to single-district counties.

Section 4: Universal and Targeted Assistance Funding Methodology

Would replace the current differentiated assistance funding formula for county offices of education with a new one that provides more consistent funding and is not reliant on the number of charter schools and districts eligible for differentiated assistance each year.

Section 9: Charter School Accountability

Would establish new auditing policies, including:

• Clarifying that charter schools are subject to existing auditing requirements.
• Establishing quality controls and ongoing education requirements for auditors.
• Requiring local educational agencies to post their audit annually.
• Requiring a process to review audit exceptions and the correction of those exceptions.
• Establishing guidelines for audit extensions.
• Changing the timeline for public review of the completed audit to within 45 days of the completion of the audit report.
• Creating new requirements for the audit guide beginning with the 2027-28 fiscal year.
• Allowing for oversight entities to request audit information in specified circumstances.

Would also:

• Apply teacher misassignment law to charter schools.
• Require all contract employees who interact with students to have a criminal background check.
• Require local educational agencies that offer grades 10 and 12 to also offer grade 11.
  • This provision is intended to limit the practice of not enrolling students in grade 11 intentionally to skip the state assessment requirement.
• Add new charter school oversight requirements, specifically for non-classroom-based charter schools.
• Require charter schools to have governing body approval of all contracts over $100,000 in a fiscal year.
• Extend the use of verified data for renewal decisions until June 30, 2028.

Section 11: State Education Governance

Would create an Education Commissioner role, appointed by the Governor, to oversee the operations of the California Department of Education (CDE) replacing the Superintendent of Public Instruction as the day-to-day manager of the CDE.  The Superintendent of Public Instruction would become a voting member of the State Board of Education and Community College Board of Governors and retain staff to carry out the duties of the office.

Section 20: Expanded Learning Opportunities Program

Would establish a consistent rate for Tier 2 at $1800 per unit.

Section 23: Universal and Targeted Assistance

Would remove the criteria for technical assistance for local educational agencies from statute and allow the State Board of Education to develop new criteria.

Section 26: Special Education Funding Formula Statewide Base Rate Equalization

Would provide $509M to equalize the special education base rate across all Special Education Local Plan Areas at approximately $998 per ADA.

Section 33: Student Support and Professional Development Discretionary Block Grant

CASBO’s 2026-27 Budget Priorities

Following in-depth discussions, CASBO’s Legislative Committee has taken positions on Governor Newsom’s proposed 2026-27 Budget.  Those positions are:

Oppose

• Withholding $5.6B in 2025-26 Proposition 98 funding.
  • This amounts to approximately $900 per ADA and undermines the needed fiscal stability and the constitutional protections for schools.

Support

• Special Education Funding (AB 602)
  • Equalizing special education funding across all Special Education Local Plan Areas is critical as identification rates rise, and the complexity of identified disabilities increase.
• The Student Support and Professional Development Block Grant
  • We support allocating funds by average daily attendance with full local discretion and minimal additional reporting requirements.
• The Sale of $1.5B in school facility bonds in 2026-27
  • Following the approval of Proposition 2 in 2024, annual bond sales are necessary to support California’s school facility needs.
• The establishment of a consistent Tier 2 rate of $1800 for the Expanded Learning Opportunities Grant Program
  • Provides stable, ongoing funding to continue serving unduplicated pupils and sustain high-quality expanded learning opportunities.
• The Cost-of-Living Adjustments (COLA)
  • Fully funding the statutory COLA preserving purchasing power amid rising costs.
• The Governor’s state TK-12 Governance proposal
  • Represents a first step toward addressing the structural challenges in California’s state level governance and refocusing the state on improving coherence, clarity, and the conditions necessary to build capacity and drive positive student outcomes across local educational agencies.

Amend

• Ongoing funding for the California Community Schools Partnership Program
  • We support dedicating a portion of the proposed $1B in on-going funds to help sustain existing community schools who want to continue the model but believe ongoing dollars should be more carefully balanced against other critical statewide obligations, specifically special education needs.

Bill Introduction Deadline 

The deadline to introduce new legislation for 2026 was Friday, February 20th. In total, 1,897 new measures were introduced. The chart below has additional details.

CASBO is proud to co-sponsor four measures this year to advance the goals of our policy platform. Below are additional details.

H.R. 87 (Muratsuchi): Relative to school accountability.

• Co-sponsored with Association of California School Administrators and the California School Boards Association.
• This resolution urges the Assembly to analyze six key questions before adopting new reporting and planning requirements for local educational agencies. Those questions are:
  • Purpose: Why is this information being requested and how will it be used?
  • Audience: Who is going to use this information?
  • Value: Of how much value is this information and what is the opportunity cost?
  • Feasibility: Is it possible to get the desired information, including from small local educational agencies?
  • Duplication: Is this information already reported to the state in some other form?
  • Duration: How long should this requirement be in effect?

AB 2008 (Patel): Legislature: local educational agencies: reporting requirements: repealer.

• Co-sponsored with Association of California School Administrators, the California School Boards Association, and the Small School Districts Association.
• This bill would automatically sunset reporting requirements placed on local educational agencies if an end date is not specified.

AB 2490 (Valencia): Elementary and secondary education.

• Co-sponsored with Association of California School Administrators, California County Superintendents, and the California School Boards Association.
• Currently a spot bill related to improving the delivery of public education in California.  We will have more to share soon!

AB 2496 (Solache): Local educational agencies: reports.

• Co-sponsored with  Association of California School Administrators and the California School Boards Association.
• Currently a spot bill related to reporting requirements for local educational agencies. We will have more to share soon!

Join CASBO’s Legislative Committee

We are looking for members to make a meaningful impact in shaping positive outcomes for school business and operations. If you’re interested in representing the interests of your section and sharing your expertise, we encourage you to apply.