Evidence to Inform Policy
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Summary

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.

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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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Summary

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.

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.