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.
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The policy brief examines the impact of QTEA on teacher recruitment, retention, and overall teacher quality in the San Francisco Unified School District. It provides evidence of the effectiveness of salary increases in attracting and hiring higher-quality teachers, and the importance of strategic hiring and retention efforts. The brief also highlights the need for teacher confidence in the longevity of such policies, and suggests the Local Control Funding Formula as a means to ensure sufficient funds for competitive teacher salaries.
Can It Support California’s College and Career-ready Goal?
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California’s school finance system has been criticized for being irrational, inequitable, and inefficient. The proposed Local Control Funding Formula aims to simplify funding and give local leaders more control, but raises questions about balancing transparency with improved outcomes, providing meaningful incentives, and effectively allocating funds.
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.
Revenues and Expenditures in the Second Year of Categorical Flexibility
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CA's school finance is highly regulated, with state funding allocated through categorical programs. In 2008-09, 40 Tier 3 programs were given fiscal freedom, leading to concerns that districts with more Tier 3 funding were disproportionately affected by the state's budget crisis. However, data show that all districts lost a similar share of their budget, with no large-scale changes in spending. Districts with more Tier 3 funding spent relatively more on alternative education, adult education, and non-instructional goals, and more of their budget on pupil services and special education.
How Districts Responded to Flexibility in Tier 3 Categorical Funds in 2010–2011
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California's system of school finance is highly regulated and prescriptive. A large share of state funding is allocated through categorical programs, that is, programs whose funding is contingent upon districts using the money in a particular way or for a particular purpose. In 2008–09, the strings were taken off 40 of those programs, collectively known as the "Tier 3" programs, as part of a budget deal that also reduced the funding for those programs.
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.

A Weighted Pupil Formula for California
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Governor Jerry Brown has called for a major overhaul of California’s school finance policies. His proposal for a weighted pupil funding system would simplify the rules that govern the distribution of funds to schools and school districts, while targeting a larger share of available resources to the schools and students with the greatest needs. In this policy report Mary Perry offers an overview and analysis of the policy change that the Governor has proposed.
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.
Structuring School District Discretion over Teacher Employment
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This brief analyzes the relationship between teacher employment, collective bargaining laws, and school district policies in California. The authors examine the extent to which California's legal structure constrains or facilitates district-level discretion over teacher employment policies and practices. They classify various aspects of the teacher-school district employment relationship into four categories, and conclude that California statutory law is somewhat more constraining of administrative decision-making in teacher employment matters than in four other large and diverse states.
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.
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This article discusses how teacher recruitment and retention affect the quality of teaching in schools. The supply and demand model, including wages and non-pecuniary job attributes, influences the supply of potential and current teachers. The demand for teachers depends on factors such as student enrollment and institutional constraints such as hiring authorities' skill and efficiency. The article identifies common policy approaches to improve recruitment and retention and summarizes current research on their effectiveness.
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Economics of education has grown in importance over the past two decades, as education is viewed as a critical factor in a nation's economic success. Economics can help improve the productivity of educational institutions by focusing on incentives, choice, and competition. The article reviews important theoretical concepts in the economics of education, including human capital, markets, and education production, and how they have been used in empirical studies.
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California's growing child population will require significant increases in public spending, particularly in education due to immigration, working parents, poverty, and family disorganization. Counties and school districts bear the brunt of providing children's services, but cities have greater fiscal flexibility and revenue-raising potential. This paper provides information on county children's services and trends in county budgets to support further research on county financing for children's services.
1960 to 1988
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Public school funding in the US has seen continuous increases in real funding since 1960, reflecting strong citizen support for public schools and a growing economy. Despite pessimism and recession in the 1980s, real school funding continued to increase substantially. This report provides an overview of school revenues and funding increases needed for education reforms, and details changes in education finance during the 1980s, comparing increases to the levels needed to fund proposed reforms.
What Did Senate Bill 813 Buy?
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California's K-12 schools are supported by a vast amount of public money, and education financing has become an intensely political issue. This report analyzes school financing outcomes, including equity, efficiency, distributional consequences, and academic rigor, and addresses the conditions of school finance equality. The report seeks to provide answers to important questions about the amount of money being spent, how it compares to other states, who benefits from the funding, and whether added state funds have bought more rigorous schooling.
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In 1987, the Superintendent of Public Instruction released a document detailing the average costs of California schools for 1985-86, providing a brief summary of school expenditures. However, this report lacks in detail, and this report aims to provide more comprehensive and realistic data on school expenditure patterns. The report serves as an analytical base for exploring issues surrounding school expenditures in California, and the data was provided by the state Department of Education staff.
Public and Personal Investments, Program Patterns, and Policy Choices—Executive Summary
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The California Staff Development Policy Study was initiated to assess the possibilities and limitations of staff development in improving classroom teaching and learning. The study aims to answer four questions related to California's investment in staff development, how staff development activities are administered, and how teachers and administrators judge their effectiveness. The study yields eight main conclusions, presented in terms of investment and focusing on improving the capacities and commitments of California's educators.
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This report provides an overview of California's school finance system, including selected school finance facts; descriptions of the general revenue limit and categorical programs funding formulas; and, for each program, the amount appropriated for 1986-87, the number of districts participating, and number of students served.
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PACE, a university-based research center, provides "nonpartisan, objective, independent" information on K-12 schooling in CA. Its analyses have been invaluable to lawmakers and educators during the state's active education-reform period. PACE has played a growing role in debates on school issues, exemplified by a heated debate in the CA legislature over the Commission on Teacher Credentialing. PACE offers a model for providing data for education policies when many states are seeking broader information bases. It has helped provide a better understanding of what is happening in education.
School Uses of Lottery Revenue—Year One
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The report discusses the implementation and impact of California's State Lottery. During its first year of operation, the lottery generated $1.77 billion in ticket sales, with $689 million going towards public education. However, the article highlights the uncertainty surrounding the use of these funds and concerns about the reliability of the lottery as a source of education revenue. The study surveyed California K-12 public school districts regarding their use of lottery revenues and attitudes towards the program.