This report examines the fiscal pressures facing California’s K–12 education system despite substantial funding growth. It explains how volatile state revenues, declining enrollment, rising costs, and reliance on one-time spending complicate long-term planning for districts. The report identifies three central policy questions involving per-pupil spending, more predictable funding for sustained priorities, and educator compensation that benefits employees while protecting district finances.

This report analyzes how California’s school finance system—built to promote equity through the Local Control Funding Formula (LCFF)—continues to produce unequal opportunities due to property wealth disparities. It explores how “basic aid” districts, which generate more local tax revenue than the state funding formula provides, have accumulated growing advantages over other districts. Drawing on fiscal and demographic analysis, the report highlights how these patterns shape resource gaps and teacher labor markets across the state and offers policy options to promote greater funding equity.

This report examines California's Local Control Funding Formula (LCFF) after eight years and suggests refinements to improve equitable funding, opportunities, and outcomes. Based on interviews, research, and data analysis, the report identifies four areas for improvement: revisiting and refining the funding formula, modernizing funding for students with disabilities, equitably distributing effective teachers, and strengthening transparency, engagement, and accountability. LCFF has been viewed as an improvement over the previous system yet gaps between equity goals and local outcomes remain.