Which school do you want to support?
Most education funding in California is allocated to school districts based on the characteristics of the students enrolled. The system is known as the Local Control Funding Formula, or LCFF.
This lesson explains how LCFF works, how it came to be, and why it's important.
The golden rule: “Whoever has the gold makes the rules.”
From 1978 through 2013, California's education finance system was very centralized, complicated, and unfair. Laws and policies set in Sacramento determined the amount of money each school district received, and significant portions of the money were earmarked for specific categorical purposes, almost like coupons. To prove their compliance with the terms of each categorical program, districts filed bushels of reports. In effect, California had a statewide system of state schools.
In 2013, as this lesson will explain, California dramatically decentralized the school finance system, aiming to create a statewide system of local school districts. The Local Control Funding Formula eliminated virtually all categorical programs. School districts were given far more power to make choices about how money is used.
Today, school districts have considerable control over money and how to spend it. (To be a little more technical, the state apportions funds to Local Education Agencies, a term that includes districts, county offices of education and charter schools. Insiders call them LEAs, pronounced as the letters, not like the name of a certain Jedi princess.)
The big idea of LCFF is that schools get money based on the needs of the students they are educating. Districts where there are many "higher need" students get more money to invest in those students. Here is how it works:
The end result is that districts receive very different levels of funding based on how many English language learners, children in poverty and children in foster care they have. Districts with higher needs receive more money to address them.
Under LCFF, the use of funds is substantially unrestricted, meaning that school districts have a lot of latitude, so long as they spend the supplemental and concentration funds in ways that follow the intent of the law. This was a big change. Now it is school districts that hold the gold, and make the rules.
Now it is school districts that hold the gold and make the rules.
Are districts actually following through on the intent of LCFF by investing more money in higher-need students?
Maybe not. A 2020 study of 14 districts by the Edunomics Lab found that only two of them spent money on high-need students in proportion to the additional money received.
In principle, school districts are accountable to their community for using LCFF funds as intended. A document known as the Local Control Accountability Plan (LCAP) is intended to provide transparency about the actual use of LCFF funds, but the accounting detail in the LCAP is minimal. Who enforces the use of funds under LCFF? In practice, it is up to community members to stand up for the intent of the law.
They don't have to do it alone, thankfully. Nonprofit law firms and advocacy groups like Public Advocates and ACLU have supported communities in this critical role, bringing cases against districts that have used LCFF targeted funds in untargeted ways. These cases are difficult. Standard public reports don't necessarily show where school district money is spent. Organizations have had to use Freedom of Information Act requests and the threat of litigation to obtain the detailed information required. It's a serious matter: in 2017 Los Angeles Unified settled such a case for $150 million.
In order to encourage local oversight, an important element of the Local Control Funding Formula is that school districts must engage parents and community to create a Local Control and Accountability Plan (LCAP). See Lesson 7.10 and the Ed100 LCAP Checklist for more information about how spending decisions are made.
The financial transition to the LCFF system was unexpectedly rapid. Originally forecast to take seven years, the job was essentially done in three due to strong growth in California's tax receipts.
Education funding for virtually all school districts is determined by LCFF. There are only a few exceptions, generally known as Basic Aid districts, where locally-generated taxes are greater than the level guaranteed by the state.
LCFF did not eliminate all categorical funds because some of them involve federal funding. The largest of these programs is Special Education, which has its own set of allocation rules and also requires the district to spend funds from its base allocation. Ed100 Lesson 8.6 explains more about the exceptions to the LCFF funding system.
In 2018 a major research project known as Getting Down to Facts II (GDTFII) examined a big, important question: How is LCFF working? The initial answer was encouraging. According to the researchers, "The data provide initial evidence that money targeted to districts with the greatest student needs has led to improvements in student outcomes."
One of the associated studies, provocatively titled Money and Freedom, found that additional funds apportioned through LCFF were put to work in ways that made a distinct, measurable difference:
“We find that LCFF-induced increases in school spending led to significant increases in high school graduation rates and academic achievement, particularly among poor and minority students. …In sum, the evidence suggests that money targeted to students' needs can make a significant difference in student outcomes and can narrow achievement gaps.”
The studies suggest considerable support for the funding formula's basic design, which directs more funding to districts where needs are greater. For example, one study for the GDTFII project surveyed Chief Business Officers, who oversee the deployment of funds in school districts. These officers generally expressed support and confidence for the changes brought about by LCFF, even in districts that did not get additional funds from the policy.
Of course, there is still plenty of room for improvement, according to the research. In particular, the report finds weakness in the central idea of local control through the reporting and public discussion system known as the Local Control Accountability Plan (LCAP). We examine the LCAP in Lesson 7.10.
Updated August, 2017 with new LCFF budget data.
Updated April, 2017 and September, 2017 to include litigation to enforce equity in use of LCFF funds.
Updated April, 2018 to reflect budget changes.
Updated Nov, 2018 to incorporate GDTFII research.
Updated December 2020.
Updated September 2022.
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Carol Kocivar April 26, 2023 at 7:53 pm
This study by the Legislative Analyst provides some historical background on LCFF’s implementation, describes how the formula works for school districts and charter schools, describes how the formula was phased in, and explain requirements for districts to adopt plans that describe how LCFF funding will be spent.
https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/04.11%20Appendix%20B%20LAO%20LCFF.pdf
Carol Kocivar March 24, 2023 at 4:35 pm
California, reviews LCFF implementation to offer guidance on improving equitable outcomes and community engagement. While the report highlights some bright spots, it underscores the need for significant innovation in order to strengthen accountability measures that can ensure a comprehensive strategic planning process and better engagement.
https://publicadvocates.org/realizing-the-promise-of-lcff-recommendations-from-the-first-ten-years/
Carol Kocivar January 9, 2023 at 3:54 pm
The Local Control Funding Formula for School Districts and Charter Schools
https://lao.ca.gov/Publications/Report/4661?utm_source=laowww&utm_medium=email&utm_campaign=4661
Carol Kocivar August 4, 2022 at 2:30 pm
The Budget includes total funding of $128.6 billion for K-12 education:
All state and federal funds $22,893 per pupil
State only: Proposition 98 General Fund $16,993 K-12 per pupil
In addition to this funding, the Budget includes $5.1 billion General Fund for K-12 school facilities, including new preschool and transitional kindergarten facilities.
This Budget is $35.8 billion Proposition 98 funds above the 2021 K-14 education budget and contains more funding for community schools and universal high-quality school meals.
It also accelerates funding for extended learning opportunities that will provide families the opportunity for a 9-hour day filled with academics and enrichment, including six weeks during the summer.
Budget details by topic are now included in the comments at the end of the appropriate Ed100 lesson..
.
Carol Kocivar July 23, 2022 at 6:35 pm
Grade Span Amount per student
TK/K3 $10,082
4-6 $9,270
7-8 $9,544
9-12 $11,349
Supplemental Grant 20%
Districts receive 20% additional funding per student for students with higher needs
Concentration Grant 65%
New in 2022. Higher concentration grant funding.
If more than 55% of children in the district are in poverty, in foster care, or learning English, the district receives an extra 65 % (instead of the previous 50 %) of the base grant for each student beyond the 55% threshold.
Jeff Camp - Founder June 28, 2022 at 12:43 am
Carol Kocivar October 19, 2021 at 12:09 pm
To increase the number of adults providing direct services to students on school campuses, the 2021-22 Budget includes an ongoing increase to the LCFF concentration grant of $1.1 billion Proposition 98 General Fund, increasing the concentration grant from
50 to 65 percent of the LCFF base grant. Local educational agencies that are recipients of these funds will be required to demonstrate in their local control and accountability plans how these funds are used to increase the number of certificated and classified staff on their campuses, including school counselors, nurses, teachers, paraprofessionals, custodial staff, and other student support providers
Carol Kocivar October 8, 2021 at 4:21 pm
An Oct, 2021 report from the Public Policy Institute of Callifornia on LCFF funding shows positive results. These include:
1. Under LCFF, resources were distributed more equitably across districts.
2. Revenues and spending increased fastest in high-need districts.
3. Test scores and A–G completion increased most in the highest-need districts after the state fully implemented the funding formula.
Among the PPIC recommendations:
1. Improve reporting to enhance tracking and transparency of funding.
2. Consider a funding mechanism based on school site need
3. Increase supplemental grants and/or lowering the threshold for concentration grants.
Lots more data. Read the report.
https://www.ppic.org/publication/targeted-k-12-funding-and-student-outcomes/
francisco molina August 19, 2019 at 2:10 am
Caroline August 15, 2019 at 6:00 pm
Jeff Camp August 16, 2019 at 11:11 am
Jennifer B February 19, 2019 at 9:24 pm
Jennifer B February 20, 2019 at 8:10 am
Gloria Lucioni January 6, 2019 at 6:55 pm
francisco molina August 20, 2019 at 1:19 am
luciab September 24, 2018 at 2:24 pm
Jeff Camp October 1, 2018 at 11:11 am
April 16, 2017 at 1:33 pm
Caryn-C September 11, 2017 at 12:07 pm
Jeff Camp October 1, 2018 at 11:18 am
Robin Pendoley October 11, 2021 at 1:51 pm
Jeff Camp - Founder October 13, 2021 at 5:31 am
Jeff Camp - Founder October 13, 2021 at 5:31 am
Sherry Schnell April 6, 2015 at 8:37 pm
Mary Perry April 7, 2015 at 1:19 pm