Evidence from California
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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.
Evidence to Inform Policy
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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.

Views from the 2019 PACE/USC Rossier Poll
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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.
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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.
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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.

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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.

What Do We Know?
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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.

How a Research Center Based at USC Rossier, Stanford and UC Davis Is Helping California Forge Its Own Path in Advancing Its Education System
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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.
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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.
Time to Reaffirm the Grand Vision
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The Local Control Funding Formula (LCFF) replaced categorical funding for schools in California in 2013, providing flexibility, targeted student funding, and local accountability. Two years in, research shows optimism and concern. The Local Control and Accountability Plan (LCAP) faces challenges, stakeholders need more engagement, and implementation requires capacity and overcoming the emerging teacher shortage. Public awareness of LCFF lags at 65%.

Early Implementation of California's Local Control Funding Formula
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California's Local Control Funding Formula (LCFF) represents a major shift in the state's education system by empowering school districts to allocate funding based on the needs of their students, with added funds for disadvantaged students. The LCFF eliminates categorical funding streams and promotes local democracy by requiring stakeholder engagement. The implementation of the LCFF is still in its early stages, and this study examines how school districts are using their newfound budget flexibility and engaging stakeholders, as well as identifying opportunities and challenges.
Rethinking Budget Priorities Under the LCFF
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The passage describes the implementation of the Local Control Funding Formula (LCFF) in California, which is expected to bring new revenues to school districts. The report suggests that strategic decision-making and goal-setting based on research-based strategies are crucial to realizing the potential benefits of the LCFF. Recommendations include an investment in four key areas that can produce real gains in school and student performance.
Strong Returns from a $19.5 Billion Investment
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The LAUSD invested over $19B to build 130 new facilities to relieve overcrowded schools. A PACE policy brief analyzed its effects on student achievement and found robust gains for many elementary-school pupils who switched from old to new facilities. However, significant gains were limited to elementary school students and new high school facilities produced weak and inconsistent achievement gains. The report also tracked thousands of students who moved from overcrowded to new facilities over the 2002-2008 period.
Five Years Later
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This report commemorates the fifth anniversary of the Getting Down to Facts project, which sought to provide a thorough and reliable analysis of the critical challenges facing California’s education system as the necessary basis for an informed discussion of policy changes aimed at improving the performance of California schools and students. The report focuses on the four key issues that received emphasis in the Getting Down to Facts studies: governance, finance, personnel, and data systems.

How 10 Districts Responded to Fiscal Flexibility, 2009–2010
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This report explores how 10 California school districts responded to the deregulation of $4.5 billion in education funding, which became entirely flexible in 2009. The study investigates how district leaders made budget decisions and what local factors influenced their responses. The research was conducted by a team of scholars from the RAND Corporation, UC Berkeley, UC Davis, and San Diego State University.
Revenues and Expenditure in the First Year of Categorical Flexibility
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This report discusses the effects of California's partial release of categorical funds to local school boards in 2009. The increased flexibility has provided an opportunity to observe how districts respond to the policy change, but the impact is difficult to isolate as most districts have been struggling to maintain core services during a severe budget crisis. The report includes preliminary results from an ongoing study of district responses to the increased categorical flexibility.
California’s Quality Education Investment Act
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This working paper examines the use of Quality Education Investment Act (QEIA) funds, which allocated $2.6B over seven years to California's lowest-performing schools. The authors conducted a study of four Los Angeles high schools to investigate how QEIA dollars were spent in the first year, who made the decisions, and how funds were used to improve teaching and the instructional program. The study found that district officials and principals had discretion in allocating funds, consistent with recent efforts to deregulate categorical-aid programs and give local educators fiscal discretion.
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This article explores the reasons why education has become a central focus of modern societies and the largest public expenditure around the world. The state has built and expanded national education systems, made attending school mandatory, and linked adult success to academic performance. The article delves into the economic factors behind state financing and provision of schools.
Investing in Education Facilities and Stronger Communities
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California is midway through one of the grandest public infrastructure projects ever attempted. Over the coming decade school officials will complete an $82 billion effort, building new schools and renovating old facilities, supported by taxpayers and private investors. But are state officials and local planners building schools mindfully to advance educational quality and lift local communities?
School Finance and Governance in California
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Getting Down to Facts is an extensive investigation of CA's public education system commissioned by a bipartisan group of CA leaders. The project aimed to describe California's school finance and governance systems, identify obstacles hindering resource utilization, and estimate costs to achieve student outcome goals. The project resulted in 23 reports by scholars, which highlight that the current school finance and governance systems fail to help students achieve state performance goals, particularly those from low-income families. The reports provide a framework for assessing reform options.
What Are Their Effects, and What Are Their Implications for School Finance?
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The report explores the impact of teacher sorting, or the tendency for high-achieving students to be assigned to more effective teachers, on student achievement. It finds that teacher sorting has a significant positive effect on student achievement in both math and English language arts. The effects are particularly strong for students who start out low-achieving. The report argues that policies aimed at reducing teacher sorting, such as random assignment of students to teachers, may be counterproductive for student achievement.
California's High Priority School Grants Program
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The report examines the effectiveness of a large-scale performance-based incentive program in California schools. Results show that the program had a small but positive impact on student test scores in math and English, with larger effects in schools with high levels of poverty. However, the authors caution that incentive programs may have unintended consequences and should be implemented with care.

Spinning Out the Implications of the Improved School Finance
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Despite the belief that increased spending leads to better educational outcomes, real expenditures per pupil have doubled since the late 1960s, yet problems in schools persist. An improved school finance approach focuses on effective resources in schools and classrooms that improve valued outcomes, rather than just increasing spending. Clarifying why funding is often wasted and developing new models of connections between revenues, resources, and the results of schooling is essential.
How Do We Assure an Adequate Education for All?
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California ranks 44th in the nation in education spending, spending only 86.1% of the national average per pupil in 2001-02. The recession of the early 2000s resulted in dramatic budget deficits for the state and substantial reductions to the expected level of school funding. Research suggests using the concept of adequacy to estimate the costs of providing an educational program that will enable all—or almost all—children to meet the state's high proficiency standards and offers recommendations for finding additional resources needed to adequately fund California's schools.
California Policy, the "Improved School Finance," and the Williams Case
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This article applies the logic of the ‘‘improved’’ school finance, arguing the need to understand how resources are used at the school and classroom levels. While California policies and most court cases have been seriously inadequate from this perspective, the recent case of Williams v. California provides new opportunities for equity since it follows the logic of the ‘‘improved’’ school finance.