California's Class Size Reduction

This report examines California’s Class Size Reduction (CSR) initiative, launched in July 1996 as the state’s largest education reform effort, aimed at improving literacy in the primary grades. With nearly $1 billion dedicated to the initiative, schools receive $800 per student (up from $650 in the first year) for reducing class sizes to 20 or fewer students in first, second, and then third grade and/or kindergarten.

The push for CSR was driven by a favorable state revenue outlook under Proposition 98, which required a portion of the surplus to be allocated to education. Concerns over low literacy rates, highlighted by California’s poor performance on the National Assessment of Educational Progress (NAEP) in 1994—where only 18 percent of students were rated proficient or advanced in reading and the state ranked second to last nationally—also fueled the initiative. Before CSR, California’s average K–3 classroom size was approximately 28.6 students, among the highest in the nation.

Despite strong enthusiasm from educators and public support, questions remain about whether CSR will effectively enhance early literacy and overall academic achievement. Factors such as curriculum content, teacher credentials, and school funding may also influence student outcomes, complicating the assessment of CSR’s impact.