Policy Analysis — June 2026

Education: Spending More, Getting Less

$128B budget. 46th in reading. 45th in math. The most expensive underperformance in the nation.

Per Pupil
$20.5K
16th nationally
Adjusted Rank
31st
Cost-of-living adj.
Total Budget
$142B
2024-25
Quality Rank
8th
Up 24 spots in 2025

Per-Pupil Spending by State

Current operations spending per student ($, 2025 dollars)

New YorkNew JerseyConnecticutCaliforniaUS AverageTexasFloridaUtah$0K$9K$18K$27K$36K$33.4K$30.3K$26.5K$20.5K$17.7K$13.5K$13.0K$12.3K
California spends $20,496 per pupil -- 16th nationally, above the US average. But when adjusted for California's higher labor costs, that ranking drops to 31st. A teacher earning $80K in CA has the purchasing power of a $50K teacher in Texas. The money doesn't go as far.

Where the Money Goes

Of California's $142.4 billion K-12 budget:

~55%
Staff Salaries

Teachers, administrators, support staff. Largest single cost.

~25%
Benefits & Pensions

Rising pension contributions absorbed 25% of the entire pre-pandemic spending increase. CalSTRS obligations growing faster than budgets.

~12%
Operations

Facilities, maintenance, utilities, transportation, food services.

~8%
Other/Admin

Administrative costs, technology, materials, programs.

Pension costs are eating the budget. Rising CalSTRS contributions consumed 25% of pre-pandemic spending growth. Money that should go to classrooms goes to retirees. This is a structural problem that gets worse every year.
Sources: EIA, CAISO, CA Energy Commission, CPUC, CA Legislative Analyst, NRC, AAA, GasBuddy, Tax Foundation, MIT/Stanford, Kpler, Bloomberg, Reuters, CalMatters, UC Davis. March 2026.
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