TOPIC

Education finance

Education Finance

In adopting the Local Control Funding Formula (LCFF), California moved from one of the least transparent school funding systems in the country to one of the most straightforward. In addition, increased revenue has helped California school district resource and expenditure levels not only recover from their post-recession lows, but also reach higher levels in 2016–17 than at any point since at least 2004–05.

However, per-pupil spending in California remains consistently below the national average, and district budgets are being impacted by rising costs associated with pensions, health care, Special Education, and facilities.

PACE research in this area is focused on building and advancing the evidence base on how to achieve equitable and adequate funding that leads to improved outcomes.

    Recent Topic Publications
    Publication cover: The Implications of Sacramento City Unified's Ongoing Budgetary Challenges for Local and State Policy
    This case study examines the looming deficit faced by Sacramento City Unified School District and the challenges it poses for students, including declining enrollment, increasing special education and pension costs. It also highlights the impact of…
    Publication cover: Charter Competition and District Finances
    Evidence from California
    This paper examines how the growth of charter schools affects traditional public schools' financial health in California. The study finds that higher charter enrollment is associated with lower per-pupil spending and fiscal health in traditional…
    Publication cover: The Challenges of Employee and Retiree Health Benefit Costs for California Districts
    This report highlights the challenges that California’s school districts face due to increasing employee health benefit costs, including retiree benefits. Such costs strain district budgets, making it harder to address other priorities, like…
    Publication cover: The Governor’s Budget Proposal and Getting Down to Facts II
    Evidence to Inform Policy
    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…