School Finance 2003-04: State Budget Woes Reverberate Through K-12 Education
November 2003 20 pages
Free download
When California voters passed Proposition 13, they effectively placed control over school funding in the hands of state government. When they passed Proposition 98, they required state lawmakers to give public education first call on the state's General Fund revenues.
These two decisions loomed large in the budget debate of 2003-04, which had to somehow address an accumulated two-year deficit of about $38 billion. When the dust finally settled, schools ended up with less general-purpose money than in previous years and sharp cuts in some special programs.
Along with an overview of how state leaders responded to the budget crisis, this report describes the amount of money available for K-12 public education and how it was allocated for 2003-04. It also provides some perspective on how school districts vary in the financial situations they face and in the options they have for coping with falling revenues and rising costs. Finally, the report looks at the issues most likely to shape the school finance debate in the near future.
EdSource thanks the Stuart Foundation for its investment in our work.
