# 1988 California Proposition 98

Elections in California :
Federal governmentU.S. President
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U.S. Senate
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U.S. House of Representatives
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2026 :
State governmentExecutive Governor
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Attorney general
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Secretary of state
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Treasurer
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Controller
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Insurance commissioner
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Superintendent
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Board of equalization
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Legislature Senate
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Special
Assembly
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Special
Judiciary Court of appeals
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Elections by year
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2024 :
State propositions1910–1919
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7
8
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13
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1986
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Full list :
Los Angeles CountyLos Angeles County Board of supervisors
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Ballot measures
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A
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R
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J
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M
Elections
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2022
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Los Angeles Mayor
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City attorney
2009
Ballot measures
1986
U
2017
S
Elections
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2011
2013
2015
2017
2019 (sp)
2020
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2024
Long Beach Mayor
1994
1998
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2022 :
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District attorney
2018
Anaheim Mayor
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Costa Mesa Municipal
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SacramentoMayor
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San Diego CountySan Diego County Board of supervisors
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San Diego Mayor
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City attorney
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City council
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San FranciscoMayor
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District attorney
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Board of supervisors
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Board of education
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Ballot measures
2024
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Elections
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Feb :
San JoseMayor
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Other localities
Bakersfield
Mayoral elections:
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Mayoral elections:
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Stockton
Mayoral elections:
2008
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vte :
California Proposition 98 is a ballot initiative that requires a minimum percentage of the state budget to be spent on K-12 education. Prop 98 guarantees an annual increase in education in the California budget. Prop 98, also called the "Classroom Instructional Improvement and Accountability Act," amended the California Constitution to mandate a minimum level of education spending based on three tests. Test one, used only for 1988 to 1989, requires spending on education to make up 39% of the state budget. Test 2, used in years of strong economic growth, requires spending on education to equal the previous years spending plus per capita growth and student enrollment adjustment. Test 3, used in years of weak economic growth guarantees prior years spending plus adjustment for enrollment growth, increases for any changes in per capita general fund revenues, and an increase by 0.5 percent in state general funds.
This is accomplished by shifting specified amounts of property tax revenues from cities, counties and special districts to "educational revenue augmentation funds" (ERAF) to support schools statewide. Proposition 98 can be suspended only by a two-thirds vote of the California Legislature.
The initiative was a result of 1978's Proposition 13, which limited assessed property taxes to one percent of a home's value in California and thus limited the amount of local funds that could be spent on school districts.
Proposition 98 has been attacked by some groups because it mandates "auto-pilot spending" and reduces the Legislature's budgetary flexibility.