California compromise targets Prop. 28 spending rules
California legislators sent a bill to Gov. Gavin Newsom’s desk this week that would clarify how schools spend the roughly $1 billion in annual arts education funding created by Proposition 28, after reaching a compromise with Austin Beutner, the former Los Angeles Unified superintendent who helped write the 2022 initiative.
“I’m delighted to come to an agreement that will further arts education for kids in California,” Beutner said.
The measure, AB 2440, seeks to streamline and clarify the rules of Prop. 28, which California voters approved overwhelmingly in 2022. Prop. 28 requires schools to use their new arts funding to supplement — not replace — existing programs. But that rule, simple on paper, has generated enough confusion in practice that dozens of school districts returned their Prop. 28 money to the state. Districts feared spending the money incorrectly and being sued over the supplement-versus-replace question.
The dispute has already moved into court. In 2025, Beutner sued Los Angeles Unified, alleging the district had cut existing arts programs and used Prop. 28 funds to replace them — an allegation the district denies. The case is pending in Los Angeles Superior Court.
The bill is the product of negotiations between the legislature and Beutner, the initiative’s chief architect. It now awaits Newsom’s signature or veto, while Beutner’s lawsuit against Los Angeles Unified proceeds in parallel.