A bill that could lead to changes in the way California public schools are funded—and send more money to most of them—has been sent to Gov. Gavin Newsom’s desk for his signature. California is one of seven states that fund schools based on average daily attendance—the average number of students in class every day throughout the school year—rather than on how many students are signed up to attend at the start of the school year. But schools in the state plan their budgets and allocate funds based on the number of students enrolled. And under the current funding formula, when students aren’t in the classroom—whether skipping school or home sick—districts lose money. Sen. Anthony Portantino, a Democrat representing Burbank, has introduced legislation that would research the impacts of changing the school funding formula from attendance-based to enrollment-based. If signed by Newsom, SB 98 would direct the Legislative Analyst’s Office to prepare and submit a report to the Legislature on the effects of the change by Jan. 1, 2026.