SACRAMENTO, Calif., Aug. 16 (Our California Times) — California schools are beginning to return unspent money from Proposition 28, the voter-approved program that directs about $1 billion a year to arts education in public K-12 schools.
The returns do not mean the state has abandoned the program. They reflect a rule requiring schools to spend their allocations within three years or send the unused money back to the state. The California Department of Education has not announced how much money was returned after the first three-year period.
The result is a mismatch: California set aside new money for music, theater, dance, visual arts and other programs, but some schools have struggled to turn those dollars into classes and teachers.
What Proposition 28 requires
California voters approved Proposition 28 in 2022. The law distributes money mainly according to student enrollment, with additional funding for schools serving larger numbers of low-income students.
At least 80% of each school’s allocation must be used for additional arts staff or educators. The remaining money can pay for supplies and other arts-related expenses.
The law also says the money must supplement existing arts programs, not replace money schools were already spending. In other words, a district generally cannot use Proposition 28 funds simply to keep an existing arts teacher or program in place while shifting its old funding elsewhere.
That requirement has raised questions for school officials and arts advocates. Some districts have been accused of using the new money for existing positions, programs or supplies. Labor leaders and a coalition of nearly 100 arts organizations have called for stronger documentation showing that districts are following the law.
Why is the money going unused?
School officials have cited two main problems: finding qualified arts teachers and understanding what spending the law allows.
Hiring can be especially difficult when a school receives enough money for only part of a teaching position or when an arts teacher would need to work at several campuses. Schools also have to plan classes, schedules and staffing before the academic year begins. Those steps can be difficult to complete while districts are still interpreting state requirements.
El Dorado County Superintendent of Schools Ed Manansala said the county has a long history of supporting arts education and wants to avoid mistakes in using the new funds.
“We need clarity and confidence that we’re doing this the right way,” Manansala said.
Create CA, a nonprofit that supported Proposition 28, compiled data indicating that dozens—and possibly hundreds—of schools spent none of their allocations. The available information does not establish a final statewide count or identify every school that returned money.
What happens to unspent funds?
Under the three-year rule, money that remains unspent must be returned to the state. The California Department of Education plans to redistribute those funds to schools that are using Proposition 28 money properly, based on their annual spending reports.
That process could help schools that have the staff and plans needed to expand arts instruction. But it also means a school that could not hire or spend quickly may lose money intended for its students, while another school receives additional funding.
The state has not released the total amount returned, the number of schools involved or the amounts returned by individual districts.
What does this mean for students?
The practical effect varies by school. A district that hires new music, theater, dance or visual-arts teachers may add classes or provide instruction to more grade levels. A district that cannot find staff may leave funds unused and face the loss of that allocation after three years.
The law’s supplement-not-supplant rule is meant to ensure that Proposition 28 expands access rather than merely protects existing programs. But that rule can also make it harder for districts to use the money when they are unsure whether a position or purchase counts as an expansion.
The Legislature has considered changes to make the money easier to use. Assembly Bill 2440, authored by Assemblymember Al Muratsuchi, was reported as having passed the Assembly in May 2026. The available records do not establish whether the bill became law or took effect. The proposal was described as allowing districts to pool school allocations and seek a state waiver when they could not meet the 80% educator-spending requirement.
For now, the basic rules remain: Proposition 28 money is for additional arts education, most of it must support educators, and unused funds must be returned after three years. California’s challenge is making sure the money reaches classrooms before that deadline.
