California entered 2010–11 with a longstanding imbalance between ongoing spending and income.

To help close that gap, state policymakers suspended Proposition 98, the minimum funding guarantee for K–12 schools and community colleges. In total, revenues for K–12 schools are down nearly 10% this year compared with 2007–08. Yet more cuts loom as the state faces a massive 2-year budget shortfall, including $6.1 billion in 2010–11.

This EdSource report discusses the budgetary decisions made in 2010–11 that are affecting K–12 education this year and going forward. It also makes clear how tightly linked school funding and the budget are in California.

EdSource thanks Joyce and Larry Stupski for underwriting the research and writing of this report.