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Implementing California’s School Funding Formula: Will High-Need Students Benefit?

By Laura Hill, Iwunze Ugo

The Local Control Funding Formula (LCFF) reformed California’s K–12 school finance system. It replaced a patchwork of formulas and specific (or "categorical”) programs with a focus on local control, funding equity, and additional support for the large share of students (63%) who are "high needs"—that is, low-income, English Learner, and/or foster care youth. However, there are still concerns about whether the new funding will reach high-need students. Because districts have spending flexibility, and because some of the extra funding for high-need students is based on their districtwide enrollment levels, it is possible that high-need schools in districts with relatively low overall shares of high-need students will not get the funding they need. Our research indicates that county offices of education—which are charged with assisting districts in developing and achieving accountability plans—may have extra work to do in parts of Southern California, the Bay Area, and Sacramento to ensure that extra state funding improves outcomes of high-need students who are not evenly distributed across district schools.

Report

Implementing Local Accountability in California’s Schools: The First Year of Planning

By Paul Warren, Giselle Carrillo

The passage of the Local Control Funding Formula (LCFF) in 2013 gave California school districts flexibility in allocating resources and significantly boosted state support for the education of disadvantaged students. LCFF also includes a Local Control and Accountability Plan (LCAP), which requires districts to enlist the help of parents and the public in identifying student performance goals and ways to achieve them. Our research in 25 California districts suggests that educators have worked hard to develop the first of these three-year plans, but that knowledge about strategic planning, data-driven decisionmaking, and involving parents and the public in the process varies significantly among districts. As a consequence, the clarity and effectiveness of the initial plans varies widely. The state can help by making technical assistance to districts and county offices of education available and affordable. Our research also indicates that expanding the role of county offices would help them push for improved student performance.

Report

Child Poverty and the Social Safety Net in California

By Caroline Danielson, Sarah Bohn

Because economic hardship is associated with a host of adverse outcomes, particularly for children, policies that can give children a better start in life are especially important. This report focuses on measuring material hardship among children across the state. Using the California Poverty Measure—which accounts for both family earnings and safety net resources and adjusts for work expenses and housing costs—we find that one-quarter of California’s children are in poverty. An additional 26 percent of children live in households that are "near poor,” or somewhat above what is often referred to as the poverty line. In short, about half of California’s children are poor or near-poor. Poverty rates, earnings, and the role of safety net resources all vary by region. But most poor children live in "working poor” families, with one or more working adults. And, without resources from the social safety net—which includes the federal Earned Income Tax Credit, CalFresh (California’s food stamp program), CalWORKs (California’s welfare program), and housing subsidies—there would be far more children in poverty throughout California.

Report

School Finance

By Margaret Weston

There is broad consensus that California's school finance system is inequitable, inadequate, and overly complex. In response to these critiques, this year Governor Jerry Brown proposed an overhaul of our school finance system. Also, two initiatives on the November ballot asked voters to increase education funding through tax increases: voters approved Proposition 30, which was integral to the governor's budget plan, and rejected Proposition 38, a citizens' initiative.

Despite the passage of Proposition 30, California faces many school finance challenges. This report provides an overview of the state's school finance system and outlines some longstanding school finance issues that may be in play next year.

Report

California’s English Learner Students

By Laura Hill

English Learner (EL) students in California’s schools are numerous and diverse, and they lag behind their native-English-speaking peers. Closing the achievement gap for EL students has been a long-standing goal for California educators, and there are some signs of success. Now that EL funding and curriculum issues are receiving a fresh level of scrutiny from decisionmakers in Sacramento, it is important to assess our understanding of this diverse group, highlight the opportunities to improve policies around demonstrating mastery of English, calibrate funding formulas involving EL students, and implement new curriculum standards thoughtfully.

Report

Special Education Finance in California: A Decade After Reform

By Stephen Lipscomb

Special education accounted for more than 16 percent—$9.3 billion—of K–12 spending in 2006–07. An extensive reform of special education financing in California about a decade ago sought to improve the way the state funds education for the disabled, who make up about 10 percent of public school students. Did reform achieve its goals? In large part, yes—but more can be done. The author suggests that to realize reform’s equity goals, policymakers could equalize base funding rates and make adjustments for local conditions such as numbers of low-income students and regional labor market wage levels.

This report was funded with support from The William and Flora Hewlett Foundation.

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