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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

For Better or For Worse? School Finance Reform in California

By Jon Sonstelie, Eric J. Brunner, Kenneth Ardon

Beginning in the 1970s, school finance in California was transformed from a local to a state system.  Has this transformation been good for California?   For Better or For Worse? School Finance Reform in California traces the origins of school finance reform and assesses its chief consequences.  Concluding that this reform did not achieve most of its original goals, the authors attribute this failure to two factors:  the reformers’ imperfect understanding of the inequities under local finance and the effects of Proposition 13.

Report

California School Finance Revenue Manual

By Jon Sonstelie, Heather Rose, Margaret Weston

The funding system for California’s public schools is overly complex—even many experts lack information about how revenue is distributed. This comprehensive manual provides some fundamental and much needed facts, describing each revenue source and providing basic statistics on how that source distributes funds. This information, especially when used in conjunction with the PPIC School Finance Model, should help to promote a more open and informed discussion of school finance policy in the state.

At Issue, Report

School Finance Reform

By Margaret Weston

California’s school finance system is widely believed to be inequitable, inadequately funded, and overly complex. But the state can significantly improve the way it funds public schools by making small investments over time. This report provides an overview of the system’s current challenges, offers five straightforward principles for reform, and outlines a new direction for the state’s school finance system.

This report was supported with funding from The William and Flora Hewlett Foundation.

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

Pathways for School Finance in California

By Jon Sonstelie, Heather Rose, Margaret Weston

This report demonstrates how California can steadily improve its school finance system as economic and demographic conditions permit. To illustrate the possibilities, this report models a variety of potential improvements. Relying on five straightforward principles for reform, the authors show how small investments over time can help the system become more equitable and transparent.

This report was supported with funding from The William and Flora Hewlett Foundation.

Report

School Finance and California’s Master Plan for Education

By Julian Betts, Jon Sonstelie, Anne Danenberg, Peter Richardson ...

Responding to a request from the Joint Committee to Develop a Master Plan for Education – Kindergarten through University, the Public Policy Institute of California commissioned a series of reports on adequacy-based school finance, alternative approaches to school governance, and local revenue options for school districts.  These reports were delivered to the Joint Committee and its staff between August 2000 and April 2001.  School Finance and California’s Master Plan for Education brings together those essays and makes them available to more general audiences.  Taken together, they suggest that a new system of school finance and governance could help provide adequate resources to California’s schools.  They also consider the link between those resources and improved student achievement.

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

Funding Formulas for California Schools IV: An Analysis of Governor Brown’s Weighted Pupil Funding Formula, May Budget Revision

By Jon Sonstelie, Heather Rose, Margaret Weston

In May 2012, Governor Brown revised his proposal for a new way to allocate revenue to California’s school districts. This report uses the PPIC School Finance Model to asses this revision. It finds that the proposed changes would lead to less funding for disadvantaged students and reduce the differences in funding gains among districts relative to the January proposal.

This research was supported with funding from The Silver Giving Foundation and the Stuart Foundation.

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