The 2021-22 academic year in California was challenging for public education due to eight issues that threaten student learning, schools, and public education itself, including gun violence, declining enrollment, and long-term funding inadequacy. These issues also have a disproportionate impact on marginalized communities and highlight long-standing systemic inequities. In July 2022, PACE and USC Rossier School of Education conducted a poll of California voters to determine their views and priorities on public education.

CA is one of six states that still use average daily attendance (ADA) to allocate state education funding to school districts. A new report suggests that 90% of districts would receive more funding under an enrollment-based formula than under the current ADA-based system, with the biggest boost going to high school districts and those with more low-income, English learner, and foster youth students. However, the report also notes that a new count method alone cannot achieve all goals, and policymakers must consider how to drive positive practices related to student attendance and engagement.

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.

The COVID-19 pandemic has affected all students; however, its impact has been particularly devastating for students of color, students from low-income families, English learners, and other marginalized children and youth. As transmission rates decline and vaccination rates increase in California, many are eager to return to normalcy, but we must all recognize that even the prepandemic normal was not working for all students. The 2021–22 school year, therefore, constitutes a critical opportunity for schools to offer students, families, and educators a restorative restart.

A report on the importance of economic analysis in decision-making in CA's school system. Economic evaluations can help identify the most effective policies and interventions while reducing waste and ultimately improving outcomes for students. Studied here is the cost-effectiveness analysis (CEA) method, its benefits, and its broad applicability. To be more influential, economic analysts should focus on policies and programs that require significant funding, investigate how results are relevant to decision-makers, and consider how resources can be allocated towards cost-effective programs.

California is the wealthiest state in the US, yet its school funding is insufficient to meet educational goals due to the high cost of living. A series of 12 charts provide an explanation of what is happening, with solutions outlined in the final section of an accompanying report.

California schools' funding had improved, but still fell short of what is necessary to meet the state's goals. Now, schools face three major challenges: declines in student achievement and social-emotional well-being due to COVID-19, increased costs associated with distance learning and school reconfiguration, and the need to tighten budgets. Securing necessary funding will require an enormous and sustained effort from many stakeholders to improve schools and student outcomes and strengthen the economic and social outlook for future generations.

In the run-up to 2020 elections, where do California voters stand on key education policy issues? This report examines findings and trends from the 2020 PACE/USC Rossier poll. Key findings include rising pessimism about California education and elected officials, continued concern about gun violence in schools and college affordability, and negative opinions about higher education. However, there is substantial support for increased spending, especially on teacher salaries.

The 2018 Getting Down to Facts II research project drew attention to California’s continued need to focus on the achievement gap, strengthen the capacity of educators in support of continuous improvement, and attend to both the adequacy and stability of funding for schools. Based on the nature of the issues and the progress made in 2019, some clear next steps deserve attention as 2020 unfolds.

Marin County's schools face rising costs, particularly for pensions and declining enrollment, which is not sustainable. Teacher salaries and recruitment are affected, with limited public awareness of district flexibility to respond to rising pension costs. Parcel taxes have faced opposition, and a statewide funding solution is necessary to support student success and stop financial distress. Building awareness of pension costs' impact is essential, and benefits and salaries are necessary to retain teachers.

This case study examines the looming deficit faced by Sacramento City Unified School District and the challenges it poses for students, including declining enrollment, increasing special education and pension costs. It also highlights the impact of SCUSD's budget practices and labor-management relations on its current budget situation. The report offers considerations for policymakers, including addressing unaffordable teacher benefits and increasing funding. Although the district's fiscal crisis cannot be solved overnight, stabilizing the situation and restoring public confidence are crucial.

This paper examines how the growth of charter schools affects traditional public schools' financial health in California. The study finds that higher charter enrollment is associated with lower per-pupil spending and fiscal health in traditional public schools, but the effects are smaller than in other states. However, the proportion of expenditures allocated to different activities, goods, or services does not differ. The paper provides lessons for policymakers and suggests that California's economic and policy context may explain the differences from similar analyses in other states.

This report highlights the challenges that California’s school districts face due to increasing employee health benefit costs, including retiree benefits. Such costs strain district budgets, making it harder to address other priorities, like increasing teacher salaries or supporting disadvantaged students. The brief suggests that districts must navigate these costs more effectively, with potential help from state policymakers, to ensure they are sustainable and not left as unfunded liabilities.

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. As the Budget moves from proposal to reality, it is critical that the evidence from GDTFII continues to inform the policy process.

With a new governor, state superintendent and legislators in Sacramento and a diminished federal role in education, there is an opportunity for California’s leaders to take stock of recent educational reforms and make necessary improvements. There are also a host of new and looming issues in K-12 and higher education. As California’s leaders confront these and other issues, where do California voters, including parents, stand on education and education policy? The newest edition of the USC Rossier/PACE Poll shares voter perspectives on a wide range of education issues.

This article uses case studies to explore how district administrators' conceptions of equity relate to finance reform implementation. The authors identify two conceptions of equity: greater resources for students with greater needs, and equal distribution of resources for all students. These beliefs were reflected in resource allocation decisions and were informed by districts' student demographics, organizational identities, and perceptions of adequacy.

California's education system aims to provide all public school students with a broad course of study consistent with state standards. However, many educators feel that the state's funding system does not provide adequate resources to meet these expectations. While funding levels have improved, they remain below those of many other states. An adequacy study estimated that providing an adequate education would have required California to spend $25.6B more in 2016-17. The study also found that larger gaps between actual spending and adequate costs were associated with lower student performance.

California's Local Control Funding Formula highlights low performance of special education students. Many districts allocate more base funding for all students into special education. A study found state funding growth has not kept pace with district costs, and the current formula inadequately funds preschool programs for infants and toddlers with disabilities. The study suggests better alignment between special education and the LCFF, and improved governance and accountability structures.

California's Local Control Funding Formula (LCFF) has increased per-pupil revenues, especially for low-income districts, and provided more flexibility in expenditures, leading to improvements in student outcomes. The funding was distributed based on the proportion of disadvantaged students, and expenditure increases were primarily allocated to teachers, pensions, and special education. The policy was implemented during a time of increased K-12 funding after the Great Recession and existing revenue distribution patterns.

The California State Teachers’ Retirement System (CalSTRS) has amassed a $107 billion "debt" due to the accrual of pension liabilities. CalSTRS contributions are legislated to nearly double by 2021. The higher rates are required through 2046, requiring significant contributions from teachers, school districts, and the state government. Solutions involve reducing benefits, increasing contribution rates, or modifying the underlying benefit structure. California could consider reforms from other states to develop its own policy response.

California's public school system has a vast inventory of buildings and properties, but many are in poor condition. The state's current school facilities funding system is criticized for not targeting aid towards districts with the greatest facility needs, resulting in a relatively regressive finance system. Local sources of funding greatly outstrip state support, and charter school facility funding continues to expand.

The Local Control Funding Formula (LCFF) shifts control of education dollars to local districts, enhancing resource allocation practices. However, inadequate base funds may constrain progress. Stakeholder engagement is evolving yet remains challenging, and school board involvement is typically modest. LCFF communication and accountability mechanisms receive mixed reviews. County offices of education have expanded their role but will need to increase their capacity. Public awareness of the LCFF lags, but it enjoys substantial support.

The Local Control Funding Formula gives local education leaders more power to allocate resources, but requires strategic budgeting practices to prioritize goals and make necessary tradeoffs. Three recommendations include integrating budgeting with strategic planning, focusing on critical questions, and developing internal structures to sustain strategic budgeting. These practices improve district policies and performance of local schools and students.

Policy Analysis for California Education (PACE) is a consortium of researchers, policymakers, and practitioners from USC Rossier, Stanford, and UC Davis Schools of Education working to improve education policy in California. PACE's focus has been the Local Control Funding Formula (LCFF), which changed the state's K-12 budget allocation. The consortium's strength is in its ability to get research into the hands of decision makers, especially in Southern California, where over a quarter of the state's K-12 students reside.

American schools have long suffered from inequitable distribution of funding, resources, and effective teachers. The LCFF reform in California is a promising solution to address achievement gaps for high-need students, but successful implementation is critical. Research has found that stakeholder engagement, explicit equity frameworks, and evidence-based programs are crucial to ensure positive impact. Studies have also revealed challenges such as underspending funds and insufficient stakeholder engagement, highlighting the need for continuous improvement.