The 2025-2026 State Budget Proposal unveiled on January 10 features a roughly balanced budget – a $322.2 billion proposal with no deficit, including $228.9 billion in general fund spending, and $16.5 billion projected revenue surplus. The following examines how the proposal could impact LA County and its residents.
LA County’s population exceeds 9.5 million, which results in a substantial share of the state budget. It boasts one of the nation’s largest workforce networks and education systems, encompassing several workforce development boards and numerous community colleges. Additionally, hundreds of labor unions and adult education providers within the county depend on the state budget allocations to fulfill programmatic needs. The budget proposal will give insight into how the fiscal year may pan out for LA County programs and initiatives.
Education Funding
Master Plan for Career Education
- $100 million in new investments will support the implementation of various Master Plan components, with $93 million in one-time funding and $7 million ongoing to expand Credit for Prior Learning, which includes the creation of the Career Passport Initiative.
- Los Angeles Pierce College and West Los Angeles College offer credit for prior learning. The implementation of the Master Plan for Career Education could provide an opportunity to scale these offerings to other colleges in LA.
The Career Passport Initiative will help job seekers and students in LA County document and verify their skills and credentials. This initiative will provide additional funding to Los Angeles County Office of Education for various student support and enrichment activities – such as dual enrollment partnerships and career technical education.
Until more details are shared through the final publishing of the Master Plan for Career Education by the Government Operations Agency, we can only anticipate how the new framework will be integrated in Los Angeles County.
California Community Colleges (CCC)
- $30 million base increase (total funding of $55 million ongoing) for Expanding the Rising Scholars Network.
- CCC Categorical Program Cost of Living Adjustment (COLA) receives $16 million from Proposition 98 General Fund to provide a 2.43-percent COLA for select categorical programs and the Adult Education Program.
- 16 community colleges in Los Angeles County serve Rising Scholars students, which build on opportunities for college students who have been impacted by the juvenile justice system. The total number of colleges could increase due to an increase in baseline funding.
Additionally, many categorical programs in LA County target low-income, first-generation, and disadvantaged students. A COLA adjustment ensures that categorical programs like Extended Opportunity Programs and Services (EOPS), DSPS (Disabled Students Programs and Services), and CalWORKs continue to serve these populations effectively. As an example, El Camino College reported 1,318 students enrolled in EOPS, while College of the Canyons serves approximately 500 students annually.
Student Financial Aid
- The Budget provides a total financial aid expenditure package of $3.1 billion ($2.6 billion to support Cal Grant – the largest entitlement program administered by the state, serving approximately 417,000 students).
- California has the largest population of undocumented college students in the United States, with estimates ranging from approximately 83,000 to nearly 100,000 individuals enrolled in higher education. Given that Los Angeles County is the most populous county in California, it is reasonable to infer that a substantial portion of the state’s undocumented students reside and attend school within LA County and will benefit from any added assistance provided through Cal Grant.
Further, Cal Grant B and Cal Grant C are aimed at providing access for specialized populations with extra support for students with significant financial need, covering books, living expenses, and tuition. Additionally, Cal Grant C supports career and technical education helping students gain vocational skills in fields like healthcare, IT, and trades, which are in high demand in LA County.
Overall, continuous Cal Grant investment is crucial for LA County’s future, ensuring that students—regardless of financial background or citizenship status—have opportunities to pursue higher education, secure well-paying jobs, and contribute to the community’s economic growth.
Labor and Workforce Development Funding
- $17 million one-time General Fund for the Regional Initiative for Social Enterprise Program (CalRISE). CalRISE provides financial and technical assistance to employment social enterprises (ESE) to help them build the capacity to create and retain jobs in communities.
- The LA County equivalent, LA:RISE is an innovative, collaborative partnership that unites the City and County of Los Angeles’ Workforce Development System that will benefit from the $17 million. LA:RISE is a non-profit social enterprise to help men and women with high barriers to employment. The program connects employment social enterprises to the workforce system, supportive services, and employers, allowing all partners to bring their expertise and resources to the table. LA:RISE has expanded from 10 to 38 partners across the County of Los Angeles and provided transitional employment to over 7,500 Angelenos.
Another example of the compounding impact of Social Enterprise Program investments is Homeboy Industries. As one of the most prominent ESEs in LA County, Homeboy Industries began in 1988 and has since developed multiple social enterprises, including a bakery and diner, to provide training and employment to formerly gang-involved and previously incarcerated individuals. The organization offers various services, such as mental health counseling, tattoo removal, and legal assistance, serving over 10,000 community members annually.
These initiatives highlight the significant impact of ESEs in Los Angeles County, fostering economic advancement and stability for individuals facing substantial employment challenges.
Social Safety Net Funding
CalWORKs
- The Budget assumes $6.4 billion for CalWORKs expenditures. An investment of $3.2 billion toward other programs such as Child Welfare Services, Foster Care, California Community Colleges Child Care and Education Services, the Department of Developmental Service programs, and the Department of Child Support Services.
- CalWORKs Work and Family Well-Being Pilot: California was selected to participate in a federal pilot program to test alternative performance measures in the Temporary Assistance for Needy Families (TANF) program. The vision for California’s pilot is to build upon a strong foundation of supportive and barrier removal services to facilitate employment and well-being. The pilot will leverage the CalWORKs Outcomes and Accountability Review (Cal-OAR) framework to measure successful programs more holistically.
- Approximately 300,000 residents in LA County are benefiting from CalWORKs, a public assistance program that provides cash aid and services to eligible families with children who need immediate financial support.
Child Care
- $7.1 billion for the Department of Social Services administered child care and developmental programs such as CalWORKs Stages One, Two, and Three, General Child Care, and various other state and local programs.
- Child care costs in Los Angeles County are notably higher that the state average. The average monthly cost for full-time, full day infant car is approximately $1,571, compared to the California statewide monthly average of $1,412. For toddlers, the disparity is greater. The above funding will significantly benefit LA County residents by expanding access to child care and developmental programs, particularly for low-income families transitioning from welfare to work. This ensures parents can remain employed while their children receive care.
Additionally, this funding will help mitigate the decreasing overall child care providers in LA County. Continued investment for child care expansion will reduce financial burdens and lower out-of-pocket costs for eligible families, making it easier for them to afford basic necessities while ensuring their children receive quality care. Ultimately, this funding will improve economic stability for working families in LA County, and strengthen LA County’s child care infrastructure.
EDGE will continue to update the January Budget Proposal’s impact to LA County as more details emerge through trailer bill language and budget deliberations.
View EDGE’s full summary of the Governor’s 2025-2026 State Budget Proposal here.
For questions, please contact Jason Henderson, Policy Analyst, at jhenderson@caedge.org.