Calif: Over past decade 8% decline in K-12 enrollment; 20% increase in SPED numbers

May 26, 2026, California’s $2.4 billion special education boost addresses critical needs, but challenges remain | EdSource

Gov. Gavin Newsom’s May budget revision takes a significant step toward addressing California’s long-underfunded special education system. Building on his January proposal to equalize base funding rates between regions, Newsom added $1.8 billion to the $509 million he had already proposed, bringing the total proposed increase to $2.4 billion, 43% more than the prior year.

In the past decade, overall TK-12 enrollment in California has declined by 8%, while the number of students receiving special education services has grown nearly 20%. Educators and researchers point to several drivers for the increase of students who qualify for special education services: better identification of developmental delays and disabilities in early childhood, growing disability advocacy that has reduced stigma and pandemic disruptions that delayed early interventions.

Declining enrollment squeezes revenue for districts across all funding sources. At the same time, rising special education enrollment drives costs higher. Federal, state and local funding dedicated to special education together covered less than 40% of the costs over the past couple of years, leaving districts to draw on general funds and other unrestricted sources to pay for special education services. The Legislature must review the revisions and pass a balanced budget by mid-June to be sent to Newsom for final approval by July 1.