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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

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.

Report

Understanding the Effects of School Funding

By Julien Lafortune

Funding for California’s K–12 public schools has reached record highs, but gaps in student outcomes remain. Understanding the benefits of additional funds, and how to distribute those funds, are key concerns for policymakers. This report offers insights from a robust body of research on the extent to which higher spending improves outcomes.

Report

Equitable State Funding for School Facilities

By Julien Lafortune, Niu Gao

Most funding for California’s K–12 facilities comes from local tax revenues, which depend on property wealth. State funding could potentially address wealth disparities, but it has disproportionately benefited more-affluent districts. Policymakers should prioritize equity in facility funding so that all students have access to safe and effective learning environments.

blog post

How Have California School Districts Used the Emergency Connectivity Fund?

By Joseph Hayes, Niu Gao

The state's school districts have received about $859 million from the federal Emergency Connectivity Fund (ECF), which supports access to internet connectivity and digital devices. Most of these funds have gone to districts with large proportions of Black, Latino, or low-income students, and the ECF dollars have been used more for connectivity than for devices.

Policy Brief

Policy Brief: District Spending of One-Time Funds for Educational Recovery

By Julien Lafortune, Laura Hill, Niu Gao, Joseph Herrera ...

States received billions in one-time stimulus funds to help recover from pandemic disruptions to education. California allocated much of its money to districts based on their shares of low-income students, which largely targeted schools with lower achievement levels rather than greater learning loss.

Report

Higher Education in California: Institutional Costs

By Hans Johnson, Patrick Murphy, Margaret Weston, Kevin Cook

Over the past 20 years, in-state tuition at both the University of California (UC) and the California State University (CSU) has more than tripled. These tuition increases have led many to believe that spending in the state’s public higher education systems is out of control. However, a closer look reveals that institutional expenditures in the two systems—including faculty salaries and benefits, the largest budget category—have not increased significantly. Our evaluation of both revenues and expenditures shows that recent tuition increases have been driven by dramatic reductions in state subsidies to UC and CSU. In the past, General Fund contributions covered the majority of educational costs. Today, students (often with help from federal, state, institutional, and private grants) pay most of these costs through tuition and associated fees. Better budget data could help policymakers monitor costs and align higher education funding with state goals. But it is clear that tuition at California’s public universities has risen much more rapidly than the cost of providing higher education.

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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