California’s powerful teachers union and one of the state’s most aggressive health care unions are heading into election season on opposite sides of major fights over taxes, spending and political influence — a split that could shape budget decisions felt across Southern California and the Inland Empire.
The California Teachers Association traces its roots to 1863, when state schools chief John Swett organized the California Educational Society with 100 members, all of them men. Over time, that organization grew into the CTA, now a union representing more than 300,000 members and widely viewed as one of Sacramento’s most influential political forces.
Long before California public employees won collective bargaining rights about 50 years ago, the CTA had already built substantial power at the Capitol. Through member dues, the union has spent heavily on campaign contributions, lobbying and ballot measures that affect public education funding.
Its signature victory came in 1988 with the passage of Proposition 98, which created a constitutional funding guarantee for K-12 schools and community colleges. The measure helped offset the erosion of local property tax revenue following Proposition 13, the 1978 initiative that capped property tax increases.
Today, Proposition 98 remains central to every state budget negotiation. Each year, lawmakers and the governor first determine how much money the formula requires for schools and community colleges before dividing the rest of the state’s revenue among other programs. If school funding is reduced, the state is generally required to restore the money later.
But education is no longer the only major budget priority competing for dominance. Medi-Cal, California’s health coverage program for low-income residents, now serves about 14 million people — more than one-third of the state’s population.
California is spending nearly $200 billion on Medi-Cal in the current fiscal year, according to the Legislative Analyst’s Office, and Gov. Gavin Newsom’s proposed 2026-27 budget would increase that amount to $217 billion. Most of the funding comes from the federal government, but the state’s share still totals roughly $50 billion, making Medi-Cal one of California’s largest commitments.
That has created growing tension as federal support declines and state leaders face pressure to fill the gap. Much of that pressure is coming from SEIU-United Healthcare Workers West, a union that represents about 120,000 members and has become one of the CTA’s strongest rivals in Sacramento.
The conflict is rooted in a basic budget reality: more money for schools can mean less flexibility for health care, and vice versa, unless voters or lawmakers approve new taxes.
The rivalry is already visible in this year’s governor’s race. The Service Employees International Union, the parent organization of SEIU-UHW, is supporting former Attorney General Xavier Becerra, a leading Democratic candidate. The CTA is backing billionaire Tom Steyer, who has repeatedly promised to pursue a long-standing teachers union goal: changing Proposition 13 to remove commercial property tax limits, a move that could raise more money for schools.
The unions are also split over budget proposals, including how California pays for preschool. The state Senate’s budget plan would move preschool funding into the Proposition 98 portion of the budget, which could free up money for health care programs. The CTA opposes that approach, viewing it as a diversion of school funding.
Their largest fight, however, is headed for the ballot. SEIU-UHW is sponsoring a measure that would impose a 5% tax on the wealth of California’s roughly 200 billionaires, with nearly all of the revenue dedicated to supporting health care.
CTA leaders oppose being left out of a potential new stream of tax revenue. They also fear the health care measure could weaken support for their own proposed ballot initiative, which would make permanent a surtax on the incomes of California’s highest earners. Voters first approved that tax in 2012, and keeping it in place could preserve as much as $15 billion a year in revenue.
The dispute marks an unusual public divide between labor organizations that often share allies and policy goals. But as California’s budget pressures grow, the state’s two heavyweight unions are increasingly competing for the same dollars — and for the political power to decide where those dollars go.
Original source: CalMatters
