AB 2440 California Assembly · 2025-2026 Regular Session

Arts and Music in Schools—Funding Guarantee and Accountability Act: allowable uses: pooled funding: certifications.

Summary
Existing law, the Arts and Music in Schools—Funding Guarantee and Accountability Act, an initiative measure approved by the voters as Proposition 28 at the November 8, 2022, statewide general election, provides a minimum source of annual funding to K–12 public schools, including public charter schools, to supplement arts education programs for pupils attending those schools, as specified. The act defines "arts education program" for these purposes to include, but not be limited to, instruction and training, supplies, materials, and arts educational partnership programs, for instruction in specified topics. The act requires the continuous appropriation for these purposes, without regard to fiscal years, from the General Fund to the State Department of Education, of an amount equal to 1% of the total state and local revenues received by local educational agencies in the preceding fiscal year that are included in the calculation of the minimum funding guarantee established by the California Constitution, as provided. The act requires funds appropriated pursuant to Proposition 28 to be allocated by the department to each local educational agency, and requires local educational agencies to allocate those funds to each schoolsite, pursuant to specified calculations. The act requires the principal or program director of each schoolsite or preschool to develop an expenditure plan for allocated funds. This bill would change the definition of "arts education program" to additionally include curriculum, instructional materials, and professional development, and would require all arts education programs to be consistent with the California Arts Standards for Public Schools, the California Arts Education Framework, or the California Preschool/Transitional Kindergarten Learning Foundations, as applicable. The bill would authorize local educational agencies to pool allocated funds and require, as a condition of this pooling, local educational agencies to ensure, among other things, (1) that expenditures for each schoolsite are in proportion to the allocation for each schoolsite and (2) compliance with the expenditure plan adopted by the principal or program director. The act requires, as a condition of receiving Proposition 28 funds, a local educational agency to, among other things, annually certify that the funds will be used to supplement arts education programs and not supplant existing funding for those programs, and that funds expended in the prior fiscal year were used to supplement arts education programs. This bill would require this certification to include specified calculations that compare existing funds available for arts education programs, as provided, with current year expenditures for arts education programs. The bill would require, in determining the existing funds available for arts education programs, a local educational agency to (1) subtract from the prior year total expenditures for arts programs expenditures from Proposition 28 funds and from resources that are no longer available in the current year, as provided, and (2) subsequently add newly available resources that are spent on arts education programs, excluding current year Proposition 28 funds. The bill would deem a local educational agency for which current year expenditures for arts education programs equal or exceed the calculations of existing funds available for arts education programs to be in compliance with the requirement to supplement arts education programs. The act also requires, as a condition of receiving Proposition 28 funds, a local educational agency to submit an annual governing board or body-approved report in a manner determined by the Superintendent of Public Instruction detailing program expenditures and to certify (1) that all funds will be used to provide arts education programs, and that funds expended in the prior fiscal year were, in fact, used for those purposes and (2) , for local educational agencies with an enrollment of 500 or more pupils, that at least 80% of Proposition 28 funds will be used to employ certificated or classified employees to provide arts education program instruction, as provided, and authorizes the department, for good cause shown, to provide a waiver to these requirements. This bill would instead require the annual governing board or body-approved report to be submitted and posted on or before September 30 in a manner determined by the department. The bill would require each schoolsite or preschool to post on its internet website the above-described expenditure plan and information on granted waivers and would authorize a local educational agency to instead require this information to be posted on the local educational agency's internet website. The bill would, commencing with the 2027–28 fiscal year, require a local educational agency to certify that all provisions of Proposition 28 have been implemented in accordance with the requirements of Proposition 28 at each of its schoolsites. To the extent these provisions impose new duties on schoolsites or local educational agencies, the bill would impose a state-mandated local program. The bill would require the department to post approved waivers on its internet website. Existing law, on or before May 1 of each fiscal year, requires (1) the governing board of each school district to either provide for an audit of all funds under the control of that school district or make arrangements with the county superintendent of schools having jurisdiction over the school district to provide for that auditing, (2) the governing body of each charter school to either provide for an audit of all funds under the control of the charter school or make arrangements with the chartering authority to provide for that auditing, and (3) each county superintendent of schools to either provide for an audit of all funds under their jurisdiction and control or make arrangements with the Controller to provide for that auditing. The act requires annual audits of a local educational agency to include, for purposes of Proposition 28, (1) all funds received and distributed by the local educational agency pursuant to specified Proposition 28 provisions and (2) a determination of whether the funds were expended pursuant to the (A) certifications submitted by the local educational agency and (B) requirements of certain Proposition 28 provisions. This bill would delete the requirement that an annual audit of a local educational agency include a determination of whether Proposition 28 funds were expended pursuant to the requirements of certain Proposition 28 provisions. Proposition 28 authorizes the Legislature to amend its provisions by a 23 vote of each house if the amendment furthers its purposes. This bill would declare that the above-described provisions further the purposes of Proposition 28. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Jun 2026
Assembly Passage
May 2026
Senate Passage
Governor
Introduced Feb 20, 2026 Last action Aug 30, 2026
Maddy AI version diff · 7 comparisons

What changed between versions

08/21/26 - Amended Senate 08/28/26 - Amended Senate · 5 edits · Aug 28, 2026
MODERATE
The August 28 Senate amendment to AB 2440 makes three substantive changes to Proposition 28's accountability framework: it narrows the definition of resources considered 'no longer available' in the supplement calculation (removing 'reduced,' 'discontinued,' and 'exhausted'), removes a documentation requirement for claiming employee replacement savings, and reduces the scope of what annual audits must verify by deleting the requirement to confirm compliance with all Proposition 28 provisions. These changes tighten the supplement test while loosening audit obligations.
REQUIREMENT

The list of conditions under which resources are considered 'no longer available' in the supplement calculation was narrowed. The phrases 'been reduced, been discontinued, been exhausted' were removed, leaving only 'have expired, were onetime in nature, or otherwise ceased to be available.' This makes it harder for local educational agencies to subtract certain funds from the baseline, raising the bar for demonstrating that Proposition 28 funds are supplementing rather than supplanting existing arts funding.

The requirement that savings from replacing one general fund employee with another be 'documented in the local educational agency's adopted budget, governing board or body records, or grant award documentation' was removed. LEAs can now claim such savings without pointing to specific documentation, making it easier to include these amounts in the supplement calculation.

The 2027-28 certification requirement was changed from certifying that 'all aspects of this chapter have been implemented properly at each of its schoolsites' to certifying that 'all aspects provisions of this chapter have been implemented properly in accordance with the requirements of this chapter at each of its schoolsites.' The added qualifier 'in accordance with the requirements of this chapter' may narrow what must be certified.

ENFORCEMENT

The annual audit requirement was narrowed. Previously, audits had to include a determination of whether Proposition 28 funds were expended pursuant to both the certifications submitted AND the requirements of the section (i.e., all of Proposition 28's provisions). The amendment deletes the 'requirements of this section' language, so audits only need to verify compliance with the certifications under subdivision (h), not full compliance with every provision of the act.

TECHNICAL

Throughout the digest and statutory text, references to 'Existing law' were replaced with 'The act' to refer to Proposition 28. This is a stylistic change that does not alter substantive meaning but reflects a preference for naming the specific statute rather than using the generic term.

Floor votes · Assembly May 21, 2026

How they voted

730
Passed · 6 other
Total votes 79
May 21, 2026
D Democratic59
55 Yea 4
93% Yea
R Republican20
18 Yea 2
90% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
25
Key actions
9
Committee
9
Amendments
8
Aug 28, 2026
Upper · Passed
Read third time and amended. Ordered to second reading.
upper
Aug 21, 2026
Upper · Passed
Read third time and amended. Ordered to second reading.
upper
Aug 13, 2026
Upper · Passed
Read second time and amended. Ordered returned to second reading.
upper
Aug 13, 2026
Introduced
From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).
upper
Jun 29, 2026
Committee
In committee: Referred to APPR. suspense file.
upper
Jun 17, 2026
Upper · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 17). Re-referred to Com. on APPR.
upper
Jun 8, 2026
Introduced
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED.
upper
Jun 3, 2026
Committee
Referred to Com. on ED.
upper
May 21, 2026
Lower · Passed
Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 2440.)
lower
May 13, 2026
Lower · Passed
From committee: Do pass. (Ayes 15. Noes 0.) (May 13).
lower
Apr 28, 2026
Committee
Re-referred to Com. on APPR.
lower
Apr 27, 2026
Lower · Passed
Read second time and amended.
lower
Apr 23, 2026
Introduced
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 22).
lower
Mar 31, 2026
Lower · Passed
In committee: Hearing postponed by committee.
lower
Mar 23, 2026
Committee
Re-referred to Com. on ED.
lower
Mar 19, 2026
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.
lower
Mar 19, 2026
Committee
Referred to Com. on ED.
lower
Feb 21, 2026
Lower · Passed
From printer. May be heard in committee March 23.
lower
1 primary · 1 co-sponsor

Sponsors