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.

California’s Current Policies and Funding Levels
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California's education system aims to provide all public school students with a broad course of study consistent with state standards. However, many educators feel that the state's funding system does not provide adequate resources to meet these expectations. While funding levels have improved, they remain below those of many other states. An adequacy study estimated that providing an adequate education would have required California to spend $25.6B more in 2016-17. The study also found that larger gaps between actual spending and adequate costs were associated with lower student performance.

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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.

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The California State Teachers’ Retirement System (CalSTRS) has amassed a $107 billion "debt" due to the accrual of pension liabilities. CalSTRS contributions are legislated to nearly double by 2021. The higher rates are required through 2046, requiring significant contributions from teachers, school districts, and the state government. Solutions involve reducing benefits, increasing contribution rates, or modifying the underlying benefit structure. California could consider reforms from other states to develop its own policy response.

A 10-Year Perspective
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California's public school system has a vast inventory of buildings and properties, but many are in poor condition. The state's current school facilities funding system is criticized for not targeting aid towards districts with the greatest facility needs, resulting in a relatively regressive finance system. Local sources of funding greatly outstrip state support, and charter school facility funding continues to expand.

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.
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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.
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.