The short answer: AB 2440 (Chapter 606, Statutes of 2026) was signed on September 27, 2026. It lets districts pool Prop 28 funds across schools, adds curriculum, materials and professional development as program costs, sets a formula for proving you did not supplant, and requires every school's plan to be posted online. Starting in 2027–28, each district must certify that every Prop 28 provision was implemented correctly at each school site.
Prop 28, the Arts and Music in Schools Funding Guarantee and Accountability Act, sends roughly $1 billion a year to California schools. For three years, districts have worked under rules many found unclear. Some held money back rather than risk an audit finding. AB 2440, by Assemblymember Al Muratsuchi, answers several of those questions and adds new duties.
It passed the Senate 39–0 and the Assembly 79–0 on August 31, 2026. It amends Education Code sections 8820, 8821 and 8822.
What AB 2440 changes, at a glance
| Topic | Before AB 2440 | After AB 2440 |
|---|---|---|
| Program costs | Instruction, training, supplies, materials, partnerships | Adds curriculum, instructional materials and professional development by name |
| Standards | No explicit alignment requirement | Programs must align with the California Arts Standards, the Arts Education Framework, or the Preschool/TK Learning Foundations, as applicable |
| Sharing funds | One site's allocation could not pay for another site's program | Funds may be pooled across sites if each site's spending stays proportional to its allocation and follows its plan |
| Supplement, not supplant | A general rule, with CDE advising districts to ask counsel | A statutory comparison of adjusted prior-year arts spending against current-year arts spending |
| Annual report | Board-approved, posted, no fixed statutory deadline | Must be submitted and posted by September 30 |
| Site plans | Not required to be posted | Each school's expenditure plan and any waiver information must be posted online (the district may post them for its schools) |
| Waivers | Granted by CDE | CDE must also post approved waivers on its website |
| Certification | Annual LEA certifications kept for the audit | From 2027–28, certify that all provisions were implemented correctly at each school site |
| Audit | Auditors tested whether funds met certain provisions | That test is removed; audits still cover funds received and the certifications submitted |
The per-site certification is the big one
Beginning with the 2027–28 fiscal year, a district must certify that all Prop 28 provisions were implemented correctly at each of its school sites. This applies to every school that receives an allocation, not only the schools with active arts programs.
The audit change makes this certification more important, not less. Auditors will no longer test certain provisions themselves. They will look at the funds received and the certifications you submit. In practice, the certification becomes the district's main compliance statement, and the evidence behind it is what protects you.
For a business office, that means one question per school: can we show, with records, that this site's plan followed the rules? For a VAPA lead, it means plans can no longer live in scattered spreadsheets and email threads.
We've turned the certification into a working list: the AB 2440 site certification checklist.
Pooling: sharing a teacher across schools
The arts teacher shortage is one of the main reasons districts left money unspent. A small school's allocation rarely covers a full position. Under the old rules, staff could be shared, but one site's money could not pay for another site's program.
AB 2440 allows districts to pool Prop 28 funds across school sites. There is a condition: spending at each site must stay proportional to that site's allocation and follow that site's expenditure plan. A shared music teacher can now be funded from several schools' allocations, as long as each school's share matches what it receives.
The practical work is the math and the paper trail. Each site's plan should show its share of the pooled cost, and the shares should track allocations each year as allocations change.
Alignment with the arts standards and framework
Arts education programs must now align with the California Arts Standards, the California Arts Education Framework, or the Preschool/TK Learning Foundations, as applicable. This closes a gap critics pointed to: courses relabeled as arts without arts instruction behind them.
News coverage of the bill gave a clear example. A P.E. class generally does not qualify just because it includes dance. Expect auditors and community members to ask how each funded course connects to the standards. Keep course descriptions and standards references with each plan.
Curriculum, materials and professional development
AB 2440 adds curriculum, instructional materials and professional development to the list of arts education program costs. Districts were already spending in these areas. The bill removes doubt that they belong in a Prop 28 plan.
The 80/20 rule still applies to districts with 500 or more students. Most non-staff costs, including vendors and partners, still fall in the 20%. See the 80/20 staffing rule, explained.
The new supplement-not-supplant test
Prop 28 money must increase arts funding, not replace it. Until now, districts had a principle without a method. AB 2440 writes the method into law:
- Start with prior-year arts spending.
- Remove resources that have expired, were one-time, or are otherwise unavailable.
- Add newly available resources, excluding current-year Prop 28 funds.
- Compare current-year arts spending to that adjusted figure. If it is equal or higher, the district is compliant.
"Unavailable resources" can include private contributions, federal funds, one-time state funds and certain employee-replacement savings. That matters for districts whose arts programs were propped up by a grant that ended. We walk through a full example in the supplement-not-supplant guide.
Posting and reporting
Two transparency changes take effect for your public website:
- Annual report by September 30. The board-approved annual report must be submitted and posted by that date.
- Every school's plan online. Each school site or preschool must post its expenditure plan and any waiver information. A district may post these on its own website instead of each school's site.
Posted plans will be read by parents, journalists and advocates. Write them so a community member can follow them: what the money buys, for which students, and how it ties to the arts standards.
Timeline: what to do and when
| When | What to do |
|---|---|
| Now through winter 2026–27 | Inventory every site's plan. Find sites with no plan or no spending. Check your current-year spending against the new supplant test. |
| Spring 2027 | Draft 2027–28 site plans with standards alignment and any pooled positions written in. Watch for CDE guidance on the certification. |
| By September 30, 2027 | Submit and post the board-approved annual report. Post each school's plan and any waiver information. |
| 2027–28 fiscal year | Certify, for each school site, that all Prop 28 provisions were implemented correctly. Keep the evidence for the audit. |
CDE's Prop 28 FAQ, last reviewed October 6, 2026, says AB 2440 will change its guidance and that updates will come through its listserv. We will update this page as guidance arrives.
What AB 2440 does not change
- The funding formula: still 1% of the prior-year K–12 Prop 98 guarantee, distributed by enrollment and economically disadvantaged enrollment.
- The 80% staffing requirement for districts with 500 or more students, and the waiver process for it.
- The 1% cap on administrative costs.
- The three-year window to spend each allocation, after which unspent funds return to CDE for reallocation. See what happens to unspent funds.
Frequently asked questions
When was AB 2440 signed?
Governor Newsom signed it on September 27, 2026. It was chaptered the same day as Chapter 606, Statutes of 2026.
When does the per-site certification start?
With the 2027–28 fiscal year. Districts must certify that all Prop 28 provisions were implemented correctly at each school site.
Can we now pay one teacher from several schools' Prop 28 funds?
Yes, through pooling, as long as each school's spending stays proportional to its allocation and follows its expenditure plan.
Do school plans have to be posted online?
Yes. Each school site must post its expenditure plan and any waiver information, or the district can post them on its website.
Is professional development an allowable Prop 28 cost?
Yes. AB 2440 names curriculum, instructional materials and professional development as arts education program costs. For districts with 500 or more students, the 80/20 rule still applies.
Does AB 2440 change the audit?
It removes the audit test of whether funds met certain Prop 28 provisions. Audits still cover the funds received and the certifications submitted, so the certification and its evidence carry more weight.
Does AB 2440 change the 80/20 rule?
No. Districts with 500 or more students must still spend at least 80% of Prop 28 funds on staff providing arts instruction, unless CDE grants a waiver.
Where is CDE's updated guidance?
CDE has said it will revise its Prop 28 guidance for AB 2440 and announce updates through its listserv. Until then, its existing FAQ applies where AB 2440 doesn't change the rules.
Get every school ready to certify, free
clearAMS holds each school to its own allocation, checks the 80/20 rule and allowability as plans are written, and keeps an unchangeable record of every approval. It is free for every California district and county office.
Sources
- AB 2440 bill status and summary, Digital Democracy (CalMatters)
- Proposition 28 Arts and Music in Schools FAQs, California Department of Education
- New law clarifies PAUSD arts funding rules, Palo Alto Ledger
- Why are schools returning the money?, CalMatters
This article explains the law in plain terms and is not legal advice. Confirm details with your county office of education or counsel.