Understanding School Finance: California's Complex K–12 System

February 2000
Note: The booklet described below was published in 2000. The information included in the booklet is now updated and available free online at our California School Finance website.

This publication summarizes and explains the complicated system that pays for the education of six million California elementary and secondary school students, the salaries and wages of thousands of employees, and the construction and maintenance of more than 8,000 schools.

Funding for California public schools comes from the state, local property taxes, the federal government, the California State Lottery, and local miscellaneous sources such as lease income, interest, and donations. State lawmakers, within the constraints of the voter-approved initiative, Proposition 98, determine the amount of state revenues and local property taxes that go to public schools. Close to two-thirds of the total money for education in California is for the general purpose of educating all students; and the other third, categorical aid, is earmarked by either the state or federal government to fund special programs or pay for extra services for children with special needs.

The information in this publication has been updated and is available free on our California School Finance website. To download a PDF of the original 2000 publication, click here.