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%.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

African Americans and Latinos historically have lower educational attainment, achievement, and wages compared to whites. Narrowing education gaps between minorities and whites should narrow wage gaps. This report analyzes whether California's education gap improvement between minorities and whites led to a parallel reduction in wage gaps. The report finds that the educational attainment and achievement of California's minority youth improved significantly from the 1970s to 1988.

This baseline analysis examines the projected need for teachers in California based on student enrollment projections, expected rates of new teachers and teacher retirements. However, it does not take into account recent policy changes such as the budget's call for reductions in class size or the proposed changes to teacher credentialing requirements. These changes will impact the need for teachers in California. The analysis shows regional teacher shortages, which are expected to persist despite the new policies.

The education productivity problem is rising resources but only modestly rising student achievement. Current education reform aims to produce higher student achievement with stable resources. Low student performance may be due to declining social and economic conditions, lack of hard work by students, and lack of parental support. However, research focuses on what schools can do to improve productivity by controlling and improving student achievement. Both education programs and finance structures need to be restructured to accomplish productivity challenges.

The 1995-96 California state budget increased K-12 education funding by $1 billion, but the additional funds were meant to be used for non-recurring expenses like deferred maintenance and facility upgrades. Lottery revenues were also intended for non-recurring expenses, but schools have come to rely on them for their core instructional program, despite decreasing revenues. This paper reviews the history of the California State Lottery as a funding source for schools and how non-recurring costs are interpreted in a system with shortfalls in core programs.

The Californians will vote on Proposition 174 which will amend the state constitution to establish "scholarships" for kindergarten to 12th-grade schooling. These new schools will be publicly funded but may have privately selected governing boards and religious orientation. It is unclear whether they will be public or private schools. The paper attempts to reduce uncertainty regarding the financial consequences of the proposed voucher plan and address questions about public costs and possible cost savings.

PACE has analyzed the financial, legal, and social ramifications of Proposition 174, the school choice initiative, so as to provide Californians and policymakers with accurate, unbiased information. This packet contains important questions and answers about the initiative, summaries of PACE's financial analysis and polling report, and background information on PACE and its directors.

The "Parental Choice in Education Initiative" or Proposition 174, will be voted on by Californians on November 2, 1993. PACE has conducted an analysis of the initiative's provisions to provide objective information to policymakers, parents, educators, and the public. PACE is not taking a stance on the initiative but has produced additional materials related to the initiative and the issue of school choice. These materials are listed in the attached report on school choice.

Many new teachers leave the profession due to low salaries, which have only slightly increased despite requiring similar preparation to other professions. A possible solution is extended contracts made possible by year-round school schedules, which could raise salaries within restricted budgets. This study examines the effects of extended-year contracts on teacher satisfaction and burnout.