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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

Funding California Schools: The Revenue Limit System

By Margaret Weston

California’s 978 school districts receive the majority of their funding through a formula known as "revenue limits.” While it is commonly believed that this funding is equitably distributed across districts, this is not the case. In 2005-2006, this funding differed across districts by as much as $3,871 per student. This report examines the components of the formula determining revenue limits, discusses the variations in funding, and considers potential reforms in school finance.

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

Statewide Survey

PPIC Statewide Survey: Californians and Education

By Mark Baldassare, Dean Bonner, Lauren Mora, Deja Thomas

As the California Legislature considers placing a school facilities bond on the November 2024 ballot, around half of likely voters say they would vote yes on such a measure. About eight in ten public school parents see catching up academically or addressing the pandemic’s social-emotional impact as the biggest K–12 challenge.

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

California’s Higher Education Funding Landscape

By Kevin Cook, Jacob Jackson, Iwunze Ugo

What is in store for higher education funding when pandemic supports end? A new report examines the potential near-term challenges due to a shrinking student base and massive state deficit. It also discusses how institutions are preparing for budget shortfalls, noting that higher tuition at four-year colleges could create difficulties for many students and their families.

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.

Statewide Survey

PPIC Statewide Survey: Californians and Education

By Mark Baldassare, Dean Bonner, Rachel Lawler, Deja Thomas

More than four in ten parents say their children have fallen behind academically during the pandemic. While most Californians approve of the way Governor Newsom is handling public K–12 education, many believe its quality has declined over the past few years.

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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