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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.

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

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

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

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.

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.

Policy Brief

Policy Brief: Understanding the Effects of School Funding

By Julien Lafortune, Stephanie Barton

A wide body of recent research offers insights into how and where additional dollars to fund K–12 public schools can improve student outcomes such as test scores and graduation rates. Estimates also reveal how long it may take to close gaps by race and income, based on current trends in funding.

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.

blog post

Who Stands to Gain from Changes in School Enrollment Funding?

By Julien Lafortune, Joseph Herrera

The state legislature is considering a change in how California K–12 schools are funded. Examining how attendance varies across districts—and how this relates to student demographics—sheds light on which districts might see the largest funding increases.

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.

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