California educators are suing Gov. Gavin Newsom’s administration over billions of dollars they say should already be supporting the state’s public schools.
The California Teachers Association, which represents approximately 310,000 educators, filed a lawsuit in Sacramento County Superior Court accusing the state of violating its constitutional school-funding obligations. According to the San Francisco Chronicle, the complaint alleges that California underfunded schools by $1.9 billion during the 2024-25 fiscal year and another $3.9 billion during 2025-26.
Although California eventually restored the earlier $1.9 billion, the union says the state has not guaranteed repayment of the remaining amount. That disputed money represents about $638 per public school student in California.
CTA President David Goldberg criticized the decision, pointing to nearly 1,000 school employees reportedly laid off over the past year. This is what he said.
Our economy is booming, yet we just crushed the careers of public school teachers and disrupted communities up and down the state. We are demanding a return of the funds that have been withheld so that our students and communities can be saved from yet another year of devastating educator layoffs and unnecessary cuts.
California Erupts at Newsom
The dispute centers on Proposition 98, a voter-approved constitutional amendment establishing minimum funding requirements for California’s public schools and community colleges. Lawmakers can temporarily suspend the guarantee under certain conditions, but the CTA argues that withheld funding must ultimately be restored.
An X post from East Bay Times highlighting the lawsuit said the educators are asking the courts to recover money allegedly withheld under Newsom’s administration. The enormous figure quickly gave critics another reason to question California’s spending priorities, particularly as school districts confront layoffs and other reductions.
Newsom’s Department of Finance rejects the suggestion that California is abandoning its obligation. Department spokesperson H.D. Palmer said officials “fully met their commitment to schools this year” by restoring previously delayed funding and said they were confident the same process would occur next year.
The teachers’ union remains unconvinced. Its lawsuit seeks a declaration that California violated Proposition 98 and a court order requiring the state to provide schools with their constitutionally guaranteed funding.






