A Summary Brief
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California and the rest of the country are enduring a pandemic-induced economic recession, and school and district leaders are bracing for the fallout. Funding for California schools had improved rapidly between 2013 and 2019, with districts spending roughly $13,100 per pupil in 2018–19 as compared with $9,680 only 6 years earlier. However, that level of funding still fell short of what would have been adequate given California’s goals as a state, the student population it serves, and its cost of living.

Evidence to Inform Policy
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Governor Newsom’s first Budget Proposal increases funding for education in California. There are areas of substantive overlap in the Budget Proposal and research findings from the Getting Down to Facts II (GDTFII) research project, released in September 2018, which built an evidence base on the current status of California education and implications for paths forward.

California’s Current Policies and Funding Levels
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California policymakers have established the expectation that all public school students should have access to a broad course of study, in classes where instruction is consistent with the state’s content standards. Further, the state holds schools and school districts accountable for their ability to ensure that all students achieve at a specified level of academic proficiency, attend school regularly, and graduate from high school prepared for adult success.

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California’s Local Control Funding Formula (LCFF), which highlights accountability for student success, has identified the progress of special education students as an area of particular concern. Statewide, the LCFF outcome data show that students with disabilities perform at particularly low levels.

A 10-Year Perspective
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California’s 6-million-student public school system includes a vast inventory of publicly owned buildings and property. All of these facilities need to be maintained and some need major renovations to ensure health, safety, and educational suitability. Some communities also need new school buildings to house a growing student population.

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California’s Local Control Funding Formula (LCFF), signed into law in 2013, represents a substantial investment in school districts serving disadvantaged students and a modest relaxation of restrictions on district expenditures.

What Do We Know?
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The Local Control Funding Formula (LCFF), signed into law by Gov. Jerry Brown on July 1, 2013, represents the first comprehensive change in the state’s education funding system in 40 years. The LCFF eliminates nearly all categorical funding streams, shifts control of most education dollars from the state to local school districts, and empowers districts, through a process of stakeholder engagement, to shape resource allocation goals and priorities to meet local needs.

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In 2014, the California Legislature passed Assembly Bill 1469, a law that requires teachers and school districts, along with the state government, to substantially increase their respective contributions to the California State Teachers’ Retirement System (CalSTRS). The need for higher pension contributions is not a short-term aberration. Recent CalSTRS projections indicate that the higher rates will be required through 2046, assuming that the system continues to operate as it has and actuarial assumptions are met.

Early Implementation of California's Local Control Funding Formula
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California has taken the first steps down an historic path that fundamentally alters how its public schools are financed, education decisions are made, and traditionally underserved students’ needs are met. The Local Control Funding Formula (LCFF), passed with bipartisan legislative support and signed into law by Governor Jerry Brown on July 1, 2013, represents the most comprehensive transformation of California’s school funding system in 40 years. The LCFF significantly loosens the reins of state control over education.
Strong Returns from a $19.5 Billion Investment
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Aiming to relieve overcrowded schools operating on multiple tracks, the Los Angeles Unified School District (LAUSD) has invested more than $19 billion to build 130 new facilities over the past decade. In a new PACE policy brief, William Welsh, Erin Coghlan, Bruce Fuller, and Luke Dauter from the University of California – Berkeley analyze the effects on student achievement of this massive initiative. Tracking thousands of students who moved from overcrowded to new facilities over the 2002-2008 period, the authors discovered robust achievement gains for many students.
Lessons Learned
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This policy brief, the author reviews the recent experience of the San Francisco Unified School District (SFUSD) with the development and approval of Proposition A. Proposition A (also known as the Quality Teacher and Education Act, or QTEA) included a parcel tax mainly dedicated to increasing teachers’ salaries, along with a variety of measures introducing flexibility to the current salary schedule and strengthening accountability for teacher performance.
The Quality Teacher and Education Act in San Francisco
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Summary
In June 2008 San Francisco voters approved Proposition A, a parcel tax initiative dedicated to improving teachers’ salaries in the San Francisco Unified School District. Proposition A also provided funding for a number of innovative teacher compensation programs, including extra pay for teachers in difficult-to-staff schools and difficult-to-fill subject areas.