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I’m CalMatters reporter Nigel Duara, filling in for Lynn today.
Education dollars have been a staple of Gov. Gavin Newsom’s seven-plus years in office. But two bills he signed created unintended consequences that impact school districts and students’ families.
Jeanne Kuang of CalMatters writes that one of Newsom’s signature educational initiatives has made private kindergartens almost economically unfeasible, and the people most affected are those who can least afford it.
Newsom’s proposal for universal, $3 billion-a-year transitional kindergarten differs from that in other states, where families can choose between a free school-based program or a private center that serves as full-day day care for infants and children up to 4 years old.
Instead, California has only expanded transitional kindergarten as a free option in public schools, while other public options remain limited, both by family income and the number of spots available. A UC Berkeley report from December cited free transitional kindergarten as part of the reason for closing more than 150 preschools in Los Angeles County between 2020 and 2024.
Middle- and higher-income families find the transition to free transitional kindergarten a simple switch: they moved from expensive private day care to a free public program. But many working families need alternative hours that only private childcare providers can offer.
The result: In Los Angeles County, between 2021 and 2024, enrollment growth in the wealthiest areas was triple that of the poorest.
School districts themselves face a different hurdle: the cost of rising insurance premiums as a 2019 law made it easier for survivors of sexual assault to sue government agencies, such as school districts, CalMatters’ Carolyn Jones writes.
To pay for these rising premiums, school districts have left teacher positions vacant and canceled renovation projects. The numbers are impressive: A year after the average school district made a payment of $1 million or more, the share of its students meeting the state standard in math fell 3.7 percentage points, and the number of students meeting the standard in reading fell 3.4 percentage points. That’s the opposite of a statewide trend: Scores have generally risen since the pandemic ended.
What should justice look like in California today? Join us in Los Angeles or virtually on February 25 for a conversation with Los Angeles District Attorney Nathan Hochman, former CDCR Director Dave Lewis and Heidi Rummel of the Post-Conviction Justice Project about prosecution, incarceration and whether reform or tougher policies will define the state’s future. Register here.

Assembly lines worked for Cheez Whiz and Model T, so why wouldn’t they work for building houses? Well, the reasons are many, but the biggest one is fear of the unknownwrites CalMatters’ Ben Christopher.
Regulators, investors, contractors and even buyers themselves are nervous about factory-built homes, but state lawmakers in two select committee hearings are at least “modular-curious” in hopes of building more homes to ease California’s housing shortage.
The hearings and upcoming report are intended to build political momentum and legislative support for a package of bills coming in the next few weeks.
The obstacles to factory-built housing can be seen in the collapse of Silicon Valley-based modular startup Katerra, which poured $2 billion into the modular housing market before filing for bankruptcy in 2021.
One big hurdle is the initial cost of getting a factory up and running. Prefab advocates say the state could step in to help with those upfront risks, such as having taxpayers act as insurers for factories and developers.

A shuttered rural California hospital needs $40 million or more to bring back its staff as Kaiser Permanente health care workers enter a fourth week of a strike for better wages.
Glenn Medical Center, Glenn County’s only hospital, closed last fall after a federal review found it was 3 miles too close to another hospital in Colusa County — the hospital is 32 miles away and should be at least 35 miles away. Deal in Congress has dropped that requirement, writes Ana B. Ibarra of CalMatters. The hospital is now hoping for a bailout from the state in the form of a $300 million loan program proposed Thursday.
Meanwhile, the union representing nurses and health care workers at Kaiser Permanente walked off the job for the first time in its history on Jan. 26. They are seeking a 25% increase over four years, citing inflation since their last contract. Kaiser Permanente countered with a 21.5 percent increase over four years and said any more could increase premiums for patients. An agreement does not seem imminentwrites Kristen Huang of CalMatters.

The California Fish and Game Commission voted unanimously to list six groups of mountain lions as endangered under the California Endangered Species Act last week. This means protecting not only the approximately 4,200 cats themselves, but their habitats also, writes Rachel Becker of CalMatters.
That designation drew the ire of ranchers who say they are losing livestock to the cats, and residents of remote Central Coast suburbs who have complained to the commission that mountain lions are taking their pets. A spokesman for the California Department of Fish and Wildlife said the cats’ protected status still allows the department to manage problem mountain lions by prioritizing non-lethal deterrents.
Municipal schoolsthat combine K-12 academics with health care and youth development services, have shown success and Newsom should make their funding permanent, wrote Castle Redmond, senior counsel at the California Youth Welfare Fund, and John H. Jackson, president of the Schott Foundation for Public Education.
After the first anniversary from the devastating wildfires in Southern California last month, CalMatters asked candidates for 2026 state insurance commissioner race to share thoughts on what the state can do to help victims and stabilize insurers.
DHS Secretary Kristi Noem visits San Diego, touts border drug seizures // CalMatters
Silicon Valley billionaires need new ally after Newsom leaves office, he may have found one in San Jose’s mayor // The Guardian
The right is obsessed with scams in California, from YouTubers to the president // San Francisco Chronicle
Experts have tips and warnings to people who monitor immigration measures // San Diego Union-Tribune
California Supreme Court vacancy means temporary judges can cast decisive votes in important cases // San Francisco Chronicle
New rules proposed by CA AG Rob Bonta threatens the future of card rooms // LA Daily News
With reusable bag the loophole is closed, California grocery stores are only on paper // San Francisco Chronicle