Total revenues for schools decreased by $4.4 billion between 2007-08 and 2009-10

The economic crisis that hit in the fall of 2008 had two major effects on how schools in the state are normally funded: Less money and a larger percent of revenues from the federal government.

In a typical year, Proposition 98 funds account for about three-quarters of the total revenues for schools, including about 55% from the state General Fund and about 20% local property taxes. In addition, federal funds generally make up about 10% of total K–12 revenues.

However, the past two budget years have been an exception to that, as the federal stimulus package enacted in February 2009 provided one-time funding totaling about $3.8 billion in 2008–09 and $2.3 billion in 2009–10.

As the table below indicates, the increase in total federal funding between 2007–08 and 2009–10 was about $3 billion. The net decrease in Proposition 98 funding for the same period was about $5.7 billion. On balance, K–12 education saw a cut in funding from these combined state and federal sources of more than $2.7 billion. That represents about $470 per pupil (based on estimated 2009–10 average daily attendance or ADA of 5.9 million students). Other sources of revenues for schools also decreased by a total of $1.7 billion.

* These numbers reflect the updated estimates for 2007-08 rather than the 2007-08 budget as passed in August 2007.

Notes: Local miscellaneous sources include private donations, parcel tax revenues, interest income, etc.

The state counts non-Proposition 98 state and local funds as part of total education funding. The local portion is mostly debt service, and the state portion includes bond repayments and spending for state education agencies and programs.

The amounts include more than $2 billion each year for services to school-age children outside regular K–12 school agencies and to individuals not part of the K–12 population but served by school agencies.

K–12 Proposition 98 average daily attendance (ADA) for 2009–10 is about 5.9 million, plus approximately 312,000 in adult education and 145,000 in regional occupational centers and programs (ROCPs).

Data: California Department of Education (CDE), California Department of Finance (DOF), Legislative Analyst's Office (LAO)
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