SACRAMENTO, Calif., Aug. 16 (Our California Times) — California schools are returning some Proposition 28 money because they did not spend it within the law’s three-year deadline, even as many districts say they have struggled to hire qualified arts teachers and understand which expenses are allowed.
The result is a gap between the funding approved by voters and the arts classes, teachers and supplies schools can put in place. The California Department of Education has not announced how much money was returned statewide after the first three-year spending period, or which schools returned funds.
What did voters approve?
California voters approved Proposition 28 in 2022. The law provides about $1 billion each year for arts education in public kindergarten through 12th-grade schools.
The money is distributed mostly based on student enrollment. Schools serving larger shares of low-income students receive additional funding.
The law requires schools to use at least 80% of their allocation for additional arts teachers or other arts educators. The remaining money can be used for supplies, materials and other related arts expenses.
The funding is meant to supplement existing arts programs, not replace money schools were already spending. That requirement is known as “supplement, not supplant.” In practice, districts cannot simply use Proposition 28 money to pay for an existing arts position or program and count it as an expansion.
Why has spending been difficult?
School officials have cited two main problems: finding qualified arts teachers and determining how to comply with the law.
A district may receive money intended for a particular school but have difficulty hiring a music, theater, dance or visual-arts teacher. Smaller or rural districts can face additional challenges if they need to serve several schools with one teacher. El Dorado County Superintendent of Schools Ed Manansala has discussed the possibility of sharing music teachers among schools in the county.
“We need clarity and confidence that we’re doing this the right way,” Manansala said. He also said El Dorado County has a long history of supporting the arts and wants to make sure it uses the money properly.
Districts have also raised questions about how to document an expansion of arts education, how to use funds across schools and which costs qualify under the law. Those questions matter because schools must show how the money was spent in annual reports.
Data compiled by Create CA, a nonprofit that supported Proposition 28, indicated that dozens—and possibly hundreds—of schools spent none of their allocations. The statewide number has not been confirmed by a California Department of Education announcement in the information available for this report.
Why must unspent money be returned?
Proposition 28 gives schools three years to spend an allocation. Any money left after that period must be returned to the state.
The California Department of Education plans to redistribute unspent money to schools that are using their Proposition 28 funds properly, based on annual spending reports. That means a school that has built the staffing and programs needed to spend the money could receive additional funds, while another school may lose money it was unable to use.
The department has not released a statewide total for the first round of returned funds. Records described in the available information also do not identify every district or school that returned money or the amount each returned.
What does this mean for students and teachers?
The law was designed to expand arts education, including access to classes and instruction that schools might not otherwise be able to provide. But funding alone does not immediately create a class: Schools still need teachers, schedules, classrooms, supplies and a way to document that the program is new or expanded.
When a school cannot hire an arts educator or is unsure whether a planned expense meets the law’s rules, it may leave money unspent. Students at that school may not see a new arts class or additional instruction before the spending deadline.
The issue is not limited to one grade level. Proposition 28 applies from kindergarten through high school, but the specific programs offered depend on each district and school. The available information does not provide a statewide list of the new classes created, the classes delayed or the students affected.
Could the rules change?
Assembly Bill 2440 was reported as having passed the California Assembly unanimously in May 2026. The bill would allow districts to pool money assigned to individual schools and would create a process for districts that cannot meet the 80% educator-spending requirement to seek a waiver from the California Department of Education.
The available information does not establish whether the bill became law, its final language or an effective date. Former Los Angeles Unified School District Superintendent Austin Beutner criticized the proposal, arguing that it could weaken Proposition 28’s requirement that the money expand arts education rather than replace existing funding.
For now, schools remain under the existing rules: spend the money on qualifying arts expansion, document that spending and return funds that remain unspent after three years.
