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
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Revenues and Expenditure in the First Year of Categorical Flexibility
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…
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Structuring School District Discretion over Teacher Employment
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…
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California’s Quality Education Investment Act
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…
The Economic Role of the State in Education
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…