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California
6th August 2026
 

THE HOT STORY

CalSTRS hits 13.9% return milestone

The California State Teachers' Retirement System (CalSTRS) announced a remarkable 13.9% return on investment for the 2025-26 fiscal year, a significant increase from last year's 8.5%. Chief Investment Officer Scott Chan said: "This is a significant step toward achieving full funding, which is vitally important to fulfilling our mission to secure the financial future of California's public school educators and their beneficiaries." As of June 30, the total Teachers' Retirement Fund reached $415.4 bn, with nearly 80% of pension obligations funded. CalSTRS aims for an average return of 7% to meet its pension commitments and is on track to fully fund these obligations by 2046. Keith Brainard from the National Association of State Retirement Administrators emphasized the importance of long-term results, stating, "It's a marathon, not a sprint." CalSTRS' diversified portfolio, with 43.4% in stocks, contributes to its long-term success.

STATE NEWS

New laws shake up California schools

Several new laws affecting California schools took effect ahead of the 2026-27 school year impacting students, parents, and teachers. Key changes include Assembly Bill 727, which mandates that public schools print The Trevor Project's contact information on student ID cards, and Assembly Bill 594, allowing students to terminate health insurance coverage if they are away from school for extended periods. Additionally, Senate Bill 848 enhances child abuse reporting requirements at private schools, while Assembly Bill 3216 limits cellphone use during school hours. Notably, Senate Bill 760 requires all public and private schools to provide all-gender bathrooms, ensuring accessibility for all students. "The restroom must be available to all students and clearly marked," the law states.

Shaw family takes on education race

Sonja Shaw, the Chino Valley School Board President, is running for State Superintendent of Public Instruction, focusing on "fixing California's broken education system." She has withdrawn from her school board reelection to concentrate on this state-level race, where she faces Richard Barrera. Meanwhile, her husband, Chris Shaw, a construction manager, is an unofficial candidate for her current position, stating: "I'm running to make sure Chino Valley stays one of the best districts in California." Sonja Shaw, elected in 2022 and president since 2023, has implemented controversial policies, including a transgender notification policy and a ban on non-U.S. flags in classrooms. If elected, she would replace Tony Thurmond, who has held the position since 2018. The deadline for candidates to register for the school board race is August 7.

Childcare crisis: schools step up

California public schools are addressing declining enrollment by partnering with nonprofit childcare providers to utilize vacant classrooms for infants and toddlers. "The school, it's a very trusted place for the communities," said Patricia Lozano, Executive Director of Early Edge. This initiative aims to fill critical gaps in childcare availability, especially for the 0-3 age group, while helping schools maintain community ties. Nonprofits like Options for Learning and Kidango are expanding their services within school districts, transforming underused facilities into vibrant childcare centers. Despite challenges, including renovation costs and licensing requirements, these partnerships are seen as a win-win for both families and schools, as they work to meet the growing demand for early childhood education in California.

FINANCE

Sacramento schools face financial crisis

Last week, Sacramento County's Office of Education rejected a revised labor agreement proposed by the Sacramento City Unified School District (SCUSD), which aimed to prevent its impending insolvency. David Gordon, the county superintendent of schools, said, “The long-term financial recovery of the district will take time and require extraordinary fiscal discipline.” SCUSD has struggled with financial stability for decades, often overspending on labor contracts. The county estimates a structural deficit of $221.8m, while the district claims it is $170.5m. If the state intervenes with loans, SCUSD may lose control over its management. Similarly, Los Angeles Unified School District faces a $231m shortfall, with warnings from the Los Angeles County Office of Education about its financial plans. Michael Fine, CEO of the Fiscal Crisis and Management Assistance Team, noted that the issue lies in approving contracts without a clear payment strategy. Both districts exemplify the challenges larger urban school systems face amid political pressures and rising spending demands.

WORKFORCE

Sacramento City Unified fights back

The Sacramento City USD is escalating its fiscal battle by appealing a decision from the Sacramento County Office of Education (SCOE) that rescinded a labor agreement with the teacher's association. The board voted unanimously to challenge the county's claims, arguing that SCOE's fiscal assumptions are "flawed" and hinder the district's financial recovery. SCUSD board president Tara Jeane emphasized unity, stating, "We are Team Sac City and we're going to move forward with this together." The legality of the appeal remains uncertain, with conflicting messages from the California Department of Education regarding the district's ability to appeal. The district faces a projected $170.5m deficit for 2025-26, which could escalate to nearly $510m by 2028-29, prompting urgent action to address its financial crisis.

POLICY

Cellphone policies shake up schools

As students prepare to return to school, new cellphone policies are being implemented across various districts in Stanislaus County. A state law mandates that all school districts adopt policies limiting or prohibiting cellphone use. For instance, Modesto City Schools has enacted a full-day cellphone ban for all grades. Turlock USD's new policy, effective for the 2026-27 school year, aims to "minimize distractions, promote student wellness and encourage students to be more engaged," according to Superintendent David Lattig. In Ceres USD, students must keep devices out of sight at all times, while Sylvan USD has enforced a long-standing ban. Exceptions exist for emergencies or documented medical needs. "The policy has been enforced for many years to support safe, focused and productive classrooms," said Velma Silva, executive assistant to the superintendent.

Los Angeles USD limits screen time for students

The Los Angeles USD is set to implement a new policy in August that limits student screen time and device usage, particularly for younger students. This initiative reflects a growing concern among parents and educators about the impact of excessive technology use on children's learning and mental health. “The first day of school in August — things will look different as a result of this policy,” said Nick Melvoin, a district board member. The policy will eliminate device use for early education through first grade and impose strict screen time limits for older students. While some educators express concerns about the policy being "misguided," others believe it is a necessary step towards fostering a healthier learning environment. The district aims to prioritize quality over quantity in technology use, encouraging analog learning methods whenever possible.

TEACHING

Parents push for early digital literacy

As technology becomes integral to childhood, a recent survey by Talker Research, commissioned by Primrose Schools, reveals that most parents believe digital literacy education should begin before kindergarten. The survey of 2,000 parents found that 90% think teaching technology skills is crucial for their child's future. Dr. Amy Jackson, Chief Franchise Officer at Primrose Schools, said, "Safe, purposeful technology means giving young children educational experiences that are thoughtfully designed to support their development." Despite 86% of parents being familiar with "digital literacy," many feel unprepared, with 76% stating they are learning to teach responsible tech habits as they go. Parents are actively seeking guidance, with 31% turning to their own parents for advice.

SAFETY AND SECURITY

Speed limits drop near schools

The San Francisco Municipal Transportation Agency (SFMTA) is set to lower speed limits around schools as part of Assembly Bill 382, which allows cities to reduce limits on streets surrounding educational institutions. The initiative aims to enhance safety for students and families, with the first changes taking effect before the upcoming school year. The SFMTA plans to implement 20 mph limits within 500 feet of schools, with the first six schools benefiting from these changes being St. Anthony-Immaculate Conception School, Jefferson Elementary School, Leonard R. Flynn Elementary School, Dr. William L. Cobb Elementary School, Roosevelt Middle School, and Ruth Asawa San Francisco School of the Arts. The agency emphasizes that lower speeds can significantly reduce the likelihood of severe injuries in accidents.

HIGHER EDUCATION

Grant boosts advanced tech education

College of the Canyons has secured a $1.1m grant from the Eli and Edythe Broad Foundation to enhance its Advanced Technology Center. This two-year funding will facilitate student enrollment growth, curriculum development, and career pathways in advanced manufacturing, network technologies, and welding. The initiative aims to support outreach to students in the William S. Hart Union High School District by providing career coaches and counselors at seven high schools. The Advanced Technology Center, which opened in 2023, offers programs designed to help students earn industry-recognized certificates and prepare for careers in various fields. The grant is part of efforts to meet the increasing demand for skilled workers in Los Angeles County.
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