EdSource's annual report on the California public education budget offers a comprehensive look at lawmakers' funding decisions for schools this year and the impact those decisions may have on future budgets. Although policymakers were particularly late in adopting the 2007-08 state budge--55 days after the fiscal year had begun--it provides a level of stability for education. However, lawmakers relied on some questionable assumptions that may create difficulties for future budgets.

This report focuses on how much money schools were budgeted this year, how those funds were allocated and some related policy changes. It highlights the increasing challenges K-14 education faces and gives a brief overview of the funding for community colleges. It also looks at issues related to school finance and governance reforms that many education stakeholders hope will be subjects of serious discussion in 2008, regardless of the state's budget situation.

EdSource thanks the Bill & Melinda Gates Foundation, the William and Flora Hewlett Foundation, and The James Irvine Foundation for their investment in our core work.