What's the Difference Between Prop 98 and Prop 28 in California?
If you work in education, local government, nonprofit arts programming, or you are a vendor that works with schools in California, you have probably seen both Proposition 28 and Proposition 98 come up in conversations. They are related. They are not the same. Here is what you need to know.
Prop 98: The Foundation
Proposition 98 is California's baseline education funding law. Voters approved it in November 1988 as a constitutional amendment. It requires the state to spend a minimum amount each year on K–14 education, meaning public K–12 schools and community colleges.
That minimum is calculated using a set of economic tests tied to enrollment growth, income growth, and General Fund revenue. The state applies whichever test produces the higher number. For the 2025–26 fiscal year, the Prop 98 guarantee sits at roughly $121.4 billion. That figure accounts for approximately 40 percent of California's General Fund. It is the single largest line item in the state budget.
Two important details. First, the Legislature can suspend the Prop 98 guarantee with a two-thirds vote and approval from the Governor. This has happened twice, in 2004–05 and again in 2010–11. Second, when the state underfunds the guarantee in lean years, a "Maintenance Factor" accrues. The state is obligated to restore those dollars when revenues recover.
Prop 28: The Arts Add-On
Proposition 28 is a more recent and more targeted law. California voters passed it in November 2022 by a wide margin of nearly 7 million votes. Unlike Prop 98, which is a constitutional amendment, Prop 28 is a state statute codified in the Education Code.
Prop 28 does one specific thing. It takes 1 percent of the prior year's K–12 share of the Prop 98 guarantee and dedicates that money exclusively to arts and music education in public PreK–12 schools. That 1 percent translates to roughly $800 million to $1 billion per year.
The spending rules are strict. Eighty percent of Prop 28 funds must go toward hiring credentialed or classified arts instructors. Up to 19 percent can be used for training, materials, supplies, and arts partnerships. Administrative costs are capped at 1 percent. Funds can roll over for up to three fiscal years. After that, unspent dollars revert to the state. Schools and Local Education Agencies must file annual public reports with the California Department of Education detailing how they spent the money.
Prop 28 also includes an equity provision. Schools serving higher concentrations of low-income students receive additional per-pupil funding under the formula.
How They Connect
The relationship between the two propositions is mathematical. Prop 28 draws its annual allocation directly from Prop 98. As the Prop 98 guarantee rises, Prop 28 funding rises with it. If Prop 98 shrinks, Prop 28 funding shrinks too.
This is an important point for anyone tracking school budgets. Prop 28 is not an independent funding stream. It is built on top of Prop 98, and its year-to-year value is determined entirely by the prior year's K–12 share of the Prop 98 guarantee.
One more distinction matters here. Prop 28 funding is explicitly supplemental. The law requires that these dollars expand arts and music programming. They cannot be used to backfill existing arts positions or replace funding that districts were already spending on arts instruction.
Conclusion
Both propositions exist to fund public education. Prop 98 sets the floor. Prop 28 builds on it.
CPRA Strategies, Inc. is a Sacramento lobbying firm and grant writing serving municipalities, special districts, nonprofits, and businesses across California. For questions about Prop 28 or legislative advocacy, contact us.
