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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

Targeted K–12 Funding and Student Outcomes

By Julien Lafortune

As students return to the classroom, record-high funding through the Local Control Funding Formula (LCFF) will help California districts address gaps after a year of remote learning. In this report, we examine school and district spending against trends in student outcomes to offer insight into whether the LCFF is meeting its goal of improving equity in education.

Fact Sheet

Financing California’s Public Schools

By Julien Lafortune

K–12 funding has been at record-high levels in recent years, and California’s per student spending is now slightly above the national average. Spending is higher for low-income students, English Learners, and foster youth. However, enrollment declines, rising costs, and the expiration of pandemic funding pose fiscal challenges for school districts.

Report

Charter Schools and California’s Local Control Funding Formula

By Iwunze Ugo, Laura Hill

Over the two decades since their inception, charter schools have become a significant part of the California public school system. Quasi-independent, but publicly funded, these schools educate about 10 percent of the state’s students.

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Implementing California’s School Funding Formula

About the Program
California is making major changes in the way it funds K‒12 education. Senior fellow Laura Hill will provide an overview of new PPIC research on key issues and elements of the Local Control Funding Formula and Local Control and Accountability Plan. PPIC director of research Patrick Murphy will moderate a panel discussion of the implementation challenges that lie ahead.

This research was supported with funding from the Evelyn and Walter Haas, Jr. Fund and the Silver Giving Foundation.

Report

Examining the Reach of Targeted School Funding

By Julien Lafortune, Joseph Herrera, Niu Gao

Under California’s ten-year-old funding formula, districts with higher shares of high-need students receive additional dollars on top of base funding. Districts have flexibility around spending these funds, but when money is not fully directed to the intended students and schools, the impact on achievement gaps is diluted.

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School Resources and the Local Control Funding Formula

The Local Control Funding Formula (LCFF) was enacted in 2013–14 to simplify California’s school finance system, revamp district and school accountability, and provide additional funding for high-need students. How has the LCFF affected educational resources across districts and schools? PPIC research fellow Julien Lafortune will outline the findings of a new report and a panel of experts will discuss the challenges and opportunities of targeting LCFF funding and improving educational outcomes for the state’s highest-need students.

Policy Brief

Policy Brief: Targeted K–12 Funding and Student Outcomes

By Julien Lafortune, Stephanie Barton

Under the Local Control Funding Formula (LCFF), more money now reaches high-need districts, and these districts spend most of that money on schools with greater need. Students are seeing some benefits from the LCFF, as seen in higher test scores, though disparities by student income, race, and language status remain large.

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