Trends and Comparisons in California School Finance

January 2007
In California the expectations for public school performance are high. The state has adopted academic content standards widely regarded as the most rigorous in the nation. But to what extent has the school finance system changed in response to these standards-based reforms?

This data-rich report considers the state’s allocation patterns since the mid-1990s to see how the amount and types of revenues that school districts receive have changed and to examine the extent to which those changes have been consistent with the state and federal reform agendas. It also looks at district expenditures based on statewide averages to provide a sense of how local districts spend the funds they receive. Comparing that to national data helps illuminate the spending decisions and trade-offs California districts are making. It also raises important questions about school district revenues and expenditures and their relationship to what we expect our public schools to accomplish. Some data highlights:

• In 2004-05 school districts as a whole--but particularly those serving K-8 students--received a smaller share of their total funds from revenue limit sources (used for general purposes) than they had in 1994-95.
• Federal categorical funding now makes up a larger share of total revenues than in the past.
• Categorical programs are increasingly used to support policy decisions, such as the state’s K-3 Class Size Reduction Program and federal and state school reform efforts. Less emphasis is being placed on programs specifically targeted to special needs students.
• California continues to report below average expenditures per pupil, above average salary costs, and more students per teacher compared to the nation.
• Changes in state policy and voter support for bonds have increased facility funding.

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