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.

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.

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.

California's education system has suffered from a lack of cohesive reform strategy since 1983 due to political and fiscal gridlock, and initiatives like Proposition 13 have limited state and local leaders' ability to fund schools adequately. To improve the system, California needs to overhaul its fiscal structure and formulate a new comprehensive reform agenda with the support of both political and educational leadership.

Funding for education in the US has grown significantly since World War II, but in California, spending for schools has lagged behind other states. Reasons for this include the taxpayer revolt of the late 1970s, competition for funds, changing demographics, and voter preferences. Many of the causes are rooted in the state tax system and school finance structure. Californians used to have a top school system but now have a lower-quality one due to these factors.