09/01/2026
Here's What Happened in August
Welcome to your monthly State Legislative Advocate Report - an exclusive CalRTA member benefit providing an inside look at the legislation, budget decisions, and advocacy efforts affecting retired educators and public education.
August 2026 Legislative Advocate Report
By Jennifer Baker, CalRTA Legislative Advocate
👉 Download a PDF file of the August Report
Or keep scrolling to read the report below.
The August Report includes:
November Ballot: CalRTA's position and analysis of Prop 3, Prop 39 and Prop 40
Update on California's final budget bill
The Public Policy Institute of California's Report: The State of California's K-12 Schools
Update on CalRTA-supported bills and their status
CalRTA Proposition Positions
CalRTA has taken positions on three propositions on the November ballot. These include:
Proposition 3 – SUPPORT
Provides Permanent Funding for Schools and Health Care by Extending Existing Tax on High Incomes
Proposition 3 would make permanent higher income-tax rates established by Proposition 30 and later extended by Proposition 55. In 2012, Proposition 30 was passed by California voters to increase tax rates for California’s wealthiest individuals to provide for additional financial support of public schools. The monies were to be spent on classroom expenses, not administrative costs. It was set to expire in 2018. Proposition 55, which was also passed by the voters, extended this through 2030. CalRTA previously supported both initiatives.
Specifically, the increased tax rates would continue to apply to personal income over approximately $371,000 for single filers, $743,000 for joint filers, and $505,000 for heads of household. It would apply 89 percent of these revenues to TK-12 schools, and 11 percent to community colleges. It would also allow local school boards to decide how revenues are spent, consistent with current law. Overall, it would increase General Fund revenues that are available for education, health care, budget reserves, and other programs. The Legislative Analyst’s Office reports that this would maintain $5 billion to $15 billion of annual state income taxes.
California’s schools have received additional funding to supplement the often less than adequate funding provided by the state and federal government. These funds have helped stabilize funding and provide additional classroom teachers and services to students.
Proposition 39 – OPPOSE
Prohibits Citizens from Voting Unless They Present Government-Issued Identification
Proposition 39 would require a voter to present a government-issued identification to verify their identity when voting in person. This identification must allow conclusive verification of the voter's identity. To vote by mail, a voter would need to include on their ballot envelope the last four digits of the unique identifying number from the government-issued identification designated in the voter’s registration record.
Both the Secretary of State and county elections officials would need to use their best efforts to verify citizenship and annually report the percentage of each county’s voter roll that has been “citizenship verified.” County election officials would need to ensure their voter registration records include the type of government-issued identification designated when registering to vote. They would need to note on the vote-by-mail envelope the type of government-issued identification designated, and make that information available to each voter upon request. They would also need to ensure that they will only count regular or provisional ballots after verifying the voter's identity and verify that the voter had cast only one ballot in the election.
In odd-numbered years, the State Auditor would be required to audit the state’s and every county’s compliance, and publicly report its findings and recommendations for improvement. The Legislature would also be required to promptly enact laws to implement the requirements of this measure.
Should this initiative pass, a significant number of seniors across California may face new barriers to exercising their constitutional right to vote. A number of seniors may be unable to travel or complete the additional steps needed to obtain a new identification card in order to vote.
Many CalRTA members live in nursing homes or other long-term care facilities, or may be at home with a caregiver. The California State Teachers’ Retirement System has reported that there are over 400 retired teachers across the state who are over 100 years of age. Some of these members have lost their vision or ability to drive, and some cannot move without assistance.
The initiative’s requirements would place a disproportionate burden on women, who make up 72 percent of active CalSTRS members. It is estimated that up to 18 percent of U.S. citizens age 65 and older lack government-issued identification. Some seniors may not have easy access to birth certificates. Women, particularly older women, are more likely to have changed their names due to marriage or divorce and may not have a government-issued identification that matches the name under which they are registered to vote.
Proposition 40 – OPPOSE
One-Time Tax on Certain Taxpayers
Beginning in 2026, billionaires would pay a one-time tax of five percent of their net worth, which would be due in 2027 but could be spread out over five years with interest. Real estate, pensions, and retirement accounts would be excluded from this tax. Revenues generated from this one-time tax would be placed into a separate account, bypassing existing revenue processes, including the Rainy-Day Fund and Proposition 98, which fund schools. 90% of this revenue would be required to be spent on health care services for the public, with the remaining 10% spent on administrative functions, specified educational services, and food assistance.
The fiscal and social impact of recent federal reductions to health care has left millions in California without adequate access to health care. This not only impacts millions of California residents, including children, but has also led to severe reductions in health care for all Californians as a number of hospitals across the state begin to shutter their doors and reduce access to services. These reductions also lead to fewer jobs and could further lower tax revenue for the state, leaving a gap in services and resources.
It is estimated that the state could collect tens of billions of dollars through this initiative, but the exact amount is unknown as billionaires may take steps to avoid these taxes by shifting assets or relocating their primary residence to another state. Additionally, these revenues may be spread over several years, which may delay the full fiscal impact of this initiative.
It is estimated that a few hundred billionaires reside in California, many of whom have amassed their wealth in the technology sector. Should a number of billionaires leave the state, this would not only affect the potential revenues generated by this initiative but also the total amount of personal income taxes paid by billionaires, which could create a long-term structural imbalance in state revenues. It is important to note that personal income taxes account for about 62 percent of the State General Fund. Forty percent of General Fund dollars go toward funding schools through Proposition 98. Should the total amount of personal income taxes decline, schools would face an immediate reduction in funding for the next fiscal year, which would exacerbate the growing fiscal impact of enrollment decline, as they would face less funding for the number of students they serve, as well as an overall revenue decline.
Because the initiative's revenues would be diverted to a separate fund, the one-time revenues would not be counted toward the Proposition 98 calculation. This could create a situation in which revenues for this initiative are generated while also leading to an overall decline in Proposition 98 and school funding due to personal income tax reductions. If funding from this initiative counted toward Proposition 98, it could help mitigate potential overall reductions in school funding resulting from lower personal income taxes.
Final Budget Bill Complexity
While the typical legislative process requires all bills to be passed by midnight on August 31st, Article IV, Section 10(c) of the California Constitution specifies that statutes that provide for tax levies or appropriations for the usual current expenses of the State, urgency statutes, and bills passed after being vetoed by the Governor, may be passed after this deadline. While this is a little-used provision of the constitution, this provision is being implemented this year, creating a one-day extension to the legislative process to pass AB/SB 113, the budget bill junior, which was not amended into print until Saturday. Technically, bills must be in print for three days before they can be taken up for a vote, which will not allow this bill to be taken up for a vote until September 1st. While the Legislature must pass bills by midnight, they will have to stay a little longer to pass this final measure before they clean up their desks for the end of this year’s legislative session.
The final education omnibus budget trailer bill, AB/SB 133, was amended in time to be voted on today. This measure was amended late Friday. A number of education policy and fiscal updates were included in this bill and will be reviewed over the next few days.
PPIC Report: The State of California’s K-12 Schools
The Public Policy Institute of California issued a report this month, “The State of California’s K–12 Schools,“ which finds that California has made significant investments in public education, but student outcomes continue to lag. California serves more than 5.7 million students, with a highly diverse student population and a large share of students facing economic or other challenges. In 2025, only 50 percent of students met state standards in English language arts and 37 percent met standards in math. Graduation rates remain relatively strong at about 87 percent, but only 47 percent of graduates completed the A to G coursework required for UC and CSU admission. Persistent achievement gaps remain, particularly for Black, Latino, low-income, and current and former English Learner students. At the same time, enrollment has declined 8 percent over the past decade and is projected to fall another 10 percent by 2035, creating significant financial and operational challenges for school districts.
The PPIC noted California is spending substantially more on K–12 education, with estimated funding of $151.6 billion in 2026–27 and per student spending of approximately $22,700 in 2023-24. The state has also made major targeted investments in expanded learning, transitional kindergarten, community schools, and literacy programs, with some evidence that targeted literacy investments are improving achievement. PPIC’s overall message is that California’s challenge is increasingly about how effectively education dollars are used, rather than simply how much is spent. As enrollment declines and the state faces potential budget constraints, policymakers will need to focus on programs that demonstrate measurable results, improve academic achievement and college readiness, close persistent opportunity gaps, and help districts adapt to changing enrollment and financial conditions.
CalRTA Bill Position Updates
The final week of the legislative session began with a total of 879 bills: 321 on the Senate Floor and 558 on the Assembly Floor. This meant the Legislature had to pass over 100 bills a day by August 31st. Any bill that failed to pass by August 31st is dead and will not move forward. The Governor has until September 30th to sign or veto bills. Non-urgency bills that have been signed will be enacted on January 1, 2027. The following are updates on CalRTA-supported bills and their status:
Health Care/Healthy Aging
AB 539 (Schiavo): Health Care Coverage: Prior Authorizations: Requires an approved prior authorization for a health care service requested by an in-network provider to remain valid for the period required by the treating provider for the prescribed course of treatment, generally for up to one year or for the duration of the treatment if it lasts less than one year. The bill would remove unnecessary bureaucratic delays and reduce the burden on physicians and patients, especially those with chronic illnesses. The measure was passed by the Legislature and is on the Governor’s desk.
AB 1906 (Aguiar-Curry): Cervical Cancer Screening: Requires health care plans or insurance policies, by 2027, to provide full coverage for cervical cancer screening, including FDA-authorized or cleared self-collected cervical screening kits, when ordered or provided by an in-network provider and consistent with nationally recognized clinical guidelines. The measure was passed by the Legislature and is on the Governor’s desk.
AB 2135 (Kalra): Long-term health care facilities: Requires long-term health care facilities to provide a 30-day notice of transfer or discharge, unless there is an exception. The notice would need to be signed by the resident or their representative, as well as a facility representative, or the facility would face penalties. The notice would also be required to be sent to the long-term care ombudsman, no later than 24 hours after the transfer. Should a facility fail to comply in a timely manner, the State Department of Public Health would prohibit the admission of new residents until compliance has been established. The measure died in the Senate Appropriations Committee.
AB 2348 (Bonta): Medi-Cal community supports: Would allow Medi-Cal managed care plans to continue to cover community supports approved by the Department of Health Care Services, which would begin in 2027 under the condition of federal participation. The department would additionally be required to publish a quarterly report and provide ongoing technical assistance to managed care plans and providers. The measure was passed by the Legislature and is on the Governor’s desk.
SB 964 (Smallwood-Cuevas): Prescription drug dose adjustments: Allows a licensed health care professional to adjust the dose or frequency of a drug for medical needs without prior authorization under certain conditions, such as if the patient was prescribed the same medication under a previous health care plan. The measure was passed by the Legislature and is on the Governor’s desk.
SB 1025 (Hurtado): Office of food security and affordability: Would create the Office of Food Security and Affordability, which would be administered by a Director of Food Security and Affordability, who would be appointed by the Governor and confirmed by the Senate. The office would be required to collaborate with existing agencies to coordinate statewide outreach to address food insecurity and create best practices for food banks and emergency food providers. A funding mechanism would be created with money from federal, state, local, or private sources. This measure died in the Assembly Appropriations Committee.
Retirement
AB 65 (Aguiar-Curry): School and community college employees: paid disability and parental leave. Would increase paid leave for school employees due to pregnancy, miscarriage, childbirth, termination of pregnancy, or the recovery from these conditions. It would also prohibit a leave of absence for these conditions from being deducted from other leaves of absence available to her. This measure was placed on the inactive file on the Senate Floor and had not moved as of the morning of August 31st. Should it continue to be held by the end of the business day, this bill will have failed. It is important to note that this policy and the funding to enact it was included in the June Budget Act.
AB 871 (Stefani): Mandated reporters of suspected financial abuse of an elder or dependent adult: Requires financial institutions to provide annual training on financial elder abuse that includes making reports to local Adult Protective Services or law enforcement and the FBI’s Internet Crime Complaint Center and the Federal Trade Commission. This bill would also expand the reports to federal authorities to improve the coordination of resources, aid local law enforcement in their investigation, and improve the chances of recovering stolen funds. The measure was passed by the Legislature and is on the Governor’s desk.
Legislative Calendar
August 31 – Last day for each house to pass bills. Final recess begins upon adjournment.
September 30 – Last day for Governor to sign or veto bills.
November 3 – General election.
December 7 – 2027-28 Regular Session of the Legislature convenes.
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