On September 27, 2026, Governor Gavin Newsom signed legislation aiming to direct more state funds toward hiring arts teachers in local schools. This move is part of a broader initiative coalesced around Assembly Bill 2440. However, the new law cannot resolve an ongoing lawsuit accusing the Los Angeles school district of allegedly misappropriating up to $77 million of its allocated funds.

Proposition 28 and Assembly Bill 2440

Assembly Bill 2440 encourages school systems to utilize funds available under Proposition 28, which voters approved in November 2022. Bill author Al Muratsuchi, representing the Democratic Party in Rolling Hills Estates, seeks to provide guidance that would help school systems use these funds without breaching spending rules that might incur financial penalties.

Proposition 28 earmarks around 1% of the state’s base education funding, nearly $1 billion each year, specifically to bolster arts education. This funding comes from the state’s general fund, thereby increasing the total educational allocation. The funds began being distributed for the 2023-24 school year and will on an ongoing basis. Still, reports indicate substantial funds remain unspent. Some local officials hesitate to utilize these funds due to concerns about noncompliance.

Support and Opposition

Support for the bill came from arts organizations, education advocates, school district officials, and the California Teachers Association. No opposition was noted in the legislative records until Austin Beutner, author of Proposition 28, raised concerns.

Beutner argued that Assembly Bill 2440 might facilitate misuse of arts funding. Key issues include potentially weakening the guaranteed funding to every school and altering provisions that ensure more funding for schools in low-income areas. Additionally, Beutner warned that districts might replace existing arts funding with the new resources, which Proposition 28 specifically intended to avoid. He structured the proposition to incentivize districts to increase arts instruction at each school.

Beutner garnered opposition from entities like United Teachers Los Angeles, mayoral candidate Nithya Raman, and San Diego school board President Richard Barrera, who is campaigning for state superintendent of public instruction with California Teachers Association’s support.

Compromise and Clarifications

A compromise was reached, and the final law—approved by Beutner—allows small schools or districts to pool resources to share an arts teacher, ensuring all schools receive arts instruction. The legislation also protects school districts from financial penalties resulting from factors beyond their control, like the end of a grant.

A lawsuit initiated by Beutner against the Los Angeles Unified School District (LAUSD) continues. Beutner accuses LAUSD of violating Proposition 28 by substituting earlier arts funding with Proposition 28 funds, failing to supplement existing funding as the law dictates. The lawsuit cites 37 elementary schools where arts instruction funding decreased or remained unchanged from 2022-23 to 2023-24.

In response to escalating criticism, LAUSD quietly increased its elementary school arts budget by $30 million for the 2024-25 school year. Despite accusations, district officials maintain their compliance with state-provided implementation guidance. “We continue to follow implementation guidance as provided by the state of California to ensure that we are fully complying with the requirements of Prop. 28,” said LAUSD at the lawsuit’s filing.