What Is the Right Base for California’s Funding Formula?
Summary
The primary aim of state finance systems across the U.S. is to achieve equalization, especially in states with local school funding under legal scrutiny. California’s current revenue limit and Governor Brown’s proposed formula both follow the traditional foundation state-aid model. In this structure, state aid per pupil is calculated as the foundation amount minus the required tax rate multiplied by assessed property wealth per pupil. Determining the foundation amount involves historical, political, and cost-based considerations. California’s current system heavily relies on historical expenditure levels from the 1970s, adjusted for inflation and equalization. Brown's proposal seems influenced by state average revenue limits after budget-induced cuts. Setting the foundation amount based on the actual cost of education remains a point of contention. California’s approach, compared to other states, tends to lag in per-pupil spending despite achieving equalization post-Serrano. States often adopt foundation formulas, aiming to increase spending in poorer districts ('leveling up'), yet California's spending remains lower on average. The ongoing debate emphasizes balancing actual educational costs, political feasibility, and historical context. Brown’s proposed base amounts, while lower than past estimates for California's educational needs, are not significantly different from those in other states using the foundation formula. However, comparing base amounts across states requires understanding that these figures represent the minimum cost to educate students without additional needs or district-specific characteristics.
